The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1876-04-01
Ruinous Effects ofHigh Taxes.

everywhere, because they fear the taxes
that confront them. They will not in,
cur the hazards of establishing new in.
dustries, or the revival of suspended
ones, where the tax gatherer insists on 8
third or half of fair income on the
capital invested. All over the country
with few exceptions, the rate of taxation
on all visible property is two and a hall
to three per cent. on its actual value
| Now, it is we'll known that the average
income of capital in the long run in this
country is less than six per cent. Where
It has fair, unembarressed chance, II
does not earn more than this; and if
large capitalists can secure this in their
permanent investments, they are content
with it, because they know the ordinary
industries country cannot flourish If. they
habitually pay more than this for the
hire eff capital When the rate or taxa
ton in any village or town or city is.
therefore, up in the neighborhood OF
three per cent, the judicious investor OF
capital at once sees and says that it is no
place to put his money. To make it even
moderately productive to its owner, 1t
must earn at least ten per cent; and rs
no form of industry can pay this and
continue to tlorish, it is to defy the max
inns of prudence to make an investment
which requires such an impossible return.
The rasults are visible on every hand
There Is plenty of Idle capital which
seeks employment and hire at four and
half and five per cent. But there were
opportunities to engage in industrial en-
terprises that would pay six or seven per
cent. on the investment, nobody would
engage IN them, because half OF the earI-
ings must 90 to the tob gath
erer. But if there were opportunities TO
engage in industrial enterprises that
would pay six or seven per cent. on the
investment, nobody could engage in
them, because half of the earnings must
90 to the tax gatherer. They would not
bring as much interest to the investor rs
If he loaned his money on substantial
stocks and bonds at five per cent; and
thus we see that although money Is
pier ty and goes begging, yet enterprise
flags. Capitalists are everywhere hiding
their money in secret loans, or putting 1t
into Government securities, to AVOID tax
alton. 1t refuses to come out into the
liyht of open day in the shape Of bricks
and mortar, spindles, and Touring mills
in iron smelling, forging, or rolling In
crllieries and mines, and all the thous-
and forms of visible occupation and In
vestment. We do not say this is owing
n; the present moment exclusively to the
ruiRous rates of municipal taxation, but
that 1t is most important factor IN the
situation is not to be denied.
ISIS naturally to be supposed that
some time or other We shall rise out OF
the depths OF depression and stagnation
in which nearly all the mechanical and
mining industries Of the country are now
plunged. But beyond all question that
period will be delayed IN consequence OF
this depressing weight of taxation that
now loads the entire nation. No new Tn
dustry can be started, no old one can be
resuscitated, except under this trsmen-
dous embarrassment. The promise OF
adequate returns has therefore got to be
lively and exceptional, in order to SLIM
ulate such an effort. No ordinary ex'
pection will suffice: for no industry can
thrive that is not able to bear the I'M
mence burden Of three per cent. taxation
And how and when can that be!
There has been a recognition OF the
state of things we have now briefly de-
picted, in the public mind for several
wears. It has shown itself occasionally
in the legislation or attempted legi' alton
oe several OF the States. 1t has been
nroposed to invite the est blishment o.
CORPORATIONS for manufacturing purposes
BY Offering them an immunity from tax
alton Tor several years. In some cases
such manufactures have been established
on these terms. But the plan Is Lot well
received generally, and it is an made
ouate remedy for the mischief it Is IN
ter ded to obviate. Ten years, which. We
believe, is as long period of exemption
AS has ever been proposed or given, " 8
verv short time in the life OF great
manufacturing corporation. 1t soon
slips away, and leaves the new lnous'rS
to struggle with It's fellows who are im'
patient of compsnionship in carrying
their burdens. Thus the plan has not
been successful in any noticeable degree
and to accomplish the end aimed at
something more effective must be de-
vised.
The practical question for the country
is. what shall the remedy BET What
will relieve the grinding load OF tbs
State and municipal taxation under
which we grosn and stsggerY 1t does mol
advance the problem to say that our pub
lie debt is in the main, the fruit OF mex
cussole mlsgovernment, extrsvagance
and downright proaigacy. 1t does not
help the matter to denounce the prodi
gals and profgistes who have got the
country into this painful and ruinous d.
lemma 1t is in vain, except to q poin'
/ that We exclaim against the fraud, cor
ruption and rspsclty which have brought
US where We are. The fact that INT
country has been victimiIed by an abom
Unable system of eXtravsgant, lsrcenous
aud fraudulent maladminlstrstion, from
its highest to its lowest authorities, suct
as was perhaps never known before n
any time or among any people, certsinl!
under no constitutional government Of
government Of popular opinion, in No
way relieves US OF the consequences O
such debauchery. There is nothing lef
for US but to face the situation, AID SCI
what is in the way of melioration.
There Is one thing, ana it il the mrs
thing to be considered and attempted
This is the sudden and prompt stoppag'