St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1876-03-31
were the monsters that threatened ii.
Chicago Tribune.
Letter from California---Mortga
Tax, &c.

Letter from Observation-Disclosures
Tax, &c.
To the Editor of the CdledOnian:
The Supreme Court of this state de-
cided last month in the case of the PeO-
pie VS.. the Hibernia Savings & Loan
Society. where was involved the ques-
ton of the so called mortgage tax, and
the decision was against the tax
The leading opinion was delivered
by Justice McKinstry, Justice Niles
cOncurred, and Chief Justice Wallace
and Justice Crockett concurred especial
ly; Justice Rhodes dissenting. 1t was
decided that credits are not property
within the meaning of the constitution,
that the system of taxation proceeds
upon the theory which requires that
the aggregate wealth of the state be
taxed, that credits are no part of that
aggregate wealth, and therefore not
property for taxation.
The idea was illustrated by the Court
thus: Suppose that the whole proper
ty of the state amounts to SI0O, ,0O0. 900
and it is owned by two men. One sells
out his half to the other for S5U, ,OOO, 900.
and takes his note for that amount. Sc
cured by mortgage on the whole prop
erty. The whole property of the state
WAS one hundred million before this
transaction. 1t is no more atterward,
and yet if You say that the note and
mortgage are property for the purpose
of taxation, there WAS just before the
transaction only one hundred million
of property, and just after it one hun
dred and fifty million. According to
this theory of taxation the more the
citizens of the state owe the richer the
community is, AND the payment of Il
debt is il public misfortune" Thus it
is shown that such IL system of cstima-
ting aggregate wealth is perfectly illu-
sory, and To enforce it is nothing else
but oppression and unjust. The law of
supply and demand. as in all countries,
regulates the rate per centum for the
use OF money, and if credits are taxed
the borrower has just 80 much more to
pay for the Use OF money.
1t is said here that this tax has been
terrible burden upon the industries of
the state. and placed npnn their bust
ness men the burden of double. treble.
and that when tested 10y reason and law
the whole system is illegal and wrong.
The decision. while based, both in the
opinion of Judge Mckinstry and in that
of Chief Justice Wallace. upon the
clearest and most searching logic and the
most inciSivc of legal reasoning, as all
decisions should he, Is also III strict ac-
cord with the best public opinion"
The system of multiplying property
tor taxation upon 81 fictitious and illu-
sorry Il basis. received the ccnsrre of all
political parties i'll the campaign of last
Fall i'll this state. and > now GENERALLY
condemned. The great class of hor-
r"wcrs III the state who have been com
PEELED t" pay taxes not only on what
they Owned but also on what they owed.
will have reason for rcjoicing The eff
feet of the decision will Ice to cheaper
the current rates of interest. unlock
capital and send it circulating more
freely through all the arteries of trade
and commerce.
The trouble here. arising from the
discount on silver is getting more and
noIc mixed. The way out of the diff
Guilty, no one seems To know. The
caIISe is mainly on account of Govern
mcnt allowing more coinage of silver
than WAS needed for business purposes
Initiation YOU see. From present i'll
dicationS il seems that the business of
all retail trade especially. must he done
on Il silver basis. while the heavier
transactions will he in gold. The re-
Sult is two instead of one circulating
medium Il condition of things not
much better if as goul a> in the East.
1t l. sad To he IL fact that the cheaper
money will always drive the rarrr ont
of circulation. To this there seems to
be n" exception here, and gold is al
ready disappearing and silver is super
abundant
In order to diSplace fractional cur
rency by the general government with
silver, it will he impossible till currency
is made to be worth more than silver,
and until this is done all attempts will
be fruitleSs. 1t is hardly possible that
silver will depreciate below the present
value of currency. a. j. III.
The Coming Contest.