Daily Kennebec journal., 1878-02-18

THE PROPOSED REDUCTION OF TaE Tax ON
SAVINGS BANKS IN REPLY TO Hon. G. Ii. Pills.
BURY OF LEWISTON.
Mr. Speaker
The question under consideration is one of those
questions which have two sides, and as the gentle
man from Lewiston has very ably presented one
side, 1t IS my purpose, in a few words, to present
some Tea uits Of tue other side.
certainty hope, sir, that this Legislature will.
in an emphatic manner, lace its foot upon this re-
soive snd upon all legislation looking TO the ex-
emrton OF property IRON taxation and above all
other p'opeltl, money. | think, sir, we have had
a plenty OF legislation OF that character in this
country aireaiy ln the hour of our nations
peri, such eg sat on was matter of nece ssity,
In order TO enatle the general government to OBJ.
tam The Necessary means with which TO defend
her te; OF, al least IT seemed TO be 20. Cone
qUently bonds were issued, exempt from taxation.
But, sm however wise such legislation seemed to
bc a. that time, thnk the burdens under which
the poorer classes are gfUaning to day in conse-
queuce must cause every honest man to doubt
| ~he her It was really wise aud proper. Ii is
sometimes better to lace squsrrly difficulty, the
| natu,e If which We understand, tnsn to seek to
avoid 1t, by Lying to Others that we know not
OIL. 1t is true, the issue Of those government
uOnds, exempt from taxation, afforded temporary
Ielet but, ask you, SIR whether the present de-
pressed condition of business throughout this
country Is not, IN great measure traceable to
| this very cause Capitalists wil not use their
money in business enterprises, when it will pay
better to let it lie idle. Hence one cause of the
present stag nation OF business.
Every dollar ef money, which Is exempt from
taxation, adds Just 50 much more to the burden of
those whose capital Is all ID real estate or taxable
personal property. We must raise q certain
| amount by way OF taxation, in one form or snoth
er, and whatever amount we take from one class
Of property. must be added to some other class
Nearly every kind OF taxable property is now
taxed at from | 2 per cent To per cent aud still
1t Is proposed to ieduce the tax on deposits, which
are now taxed only one per cent. to "a of one
per cent, and make up the deficiency by iucreas-
ing the tax on other classes OF taxable property
The blll does not say that, but that such must be
the inevitable result i perfectly plain, unless We
some seem disposed to do, rob our children OF
that which Is Of more value TO them than silver or
gold, viz, an education, purely from mercenarv
motives can see no proprlety In granting the
reduction asked for III the proposed bill.
look upon 1t as legislation directly in the in
terest OF money men, against the interests of the
humble farmer, merchant and mechanic, or pro-
iesslonal maB, whose capital IS invested in the
little taxable property which he may have about
hun, which he cannot, or has no disposition to
hide, and which he cannot get along without. 1t
Il argued that the Savings Banks are intended a.
places Of deposit for people in humble circum-
stances who may happen to be the possessor Of
lew dollars earned by hard toll, and CONSEQUENT
ly 1t ought not to be subject to taxation.
am very well aware, Mr. Speaker, and gentle
men OF the Legislature, that such was the original
fact at the present time Are not such depositors
the exception rather than the rule :
Throughout all the country towns, large ma
jority of the depositOrs are people, who have a
surplus of money, which they desire to invest in
some way, and they deposit in the Savings Bank
for tue sole reason that II will afford them fair
dividend, and iJ, comparatively, exempt from tax
alton.
Aow let us suppose case and it is a supposi-
ton which has an actual existence all through
the country:
\ and b are farmers Each has about the
amount of land, and about the same
amount of stock A has his property paid
tor, and surplus of few hundred dollars in
the Savings Bauk. b is owing a few hundred
dollars on his property, and he goes TO the Saw
ings Bank and hires the same money which A has
deposited there and places a mortgage upon his
property, aud pays his former debt with il. Now
the proposition is to exempt As money, or let him
of with a TAX of 3-+ per cent. while we assess y
tax of 2, o. per cent upon the property of B,
for which he Is owing the money, and paying in-
tercst upon 1t, indirectly to A. And not only this,
but while You reduce A ; tax you increase BIS 10
he same ratio Now ask you, gentlemen, is
th re anything right just IN such proposition
But suppose the dtpO-iteis tCeFe poor people,
and tad no property aside I. ON their money, still
b-k, why, upon any rule of common honesty,
thoir one, >hould pay less tax than other prop
e.tN OF ike value
II a mao has but COW, it must be taxed;
the SAW =, Bank:
tail TO see why tins discrimination should be
uadr IN favor Of money. | thiuk we should take
watnltg = from the past. Let every class of prop
erty bear ITS pr poruouate share OF TAXATION. We
nave too many laws now iavoring the money in
teie,- OF The country, at the expense of the poor
classes; and protest, in their behalf against
the tnactmr Ut of any more of the same character.
But he argument is made that the banks
not afford tp receive deposits unless the tax Is
duCrd. Bat | ask # they have not done so all
along aud continued to pay a far dividend i-ss
good dividend as other classes of property have
Iad, with some few exceptions | know some
OF the banks are failing, but what Is the cause 1t
Is rot on account OF this small tax, but owing to
unfortunate investments. Those banks which
have been judiclONs their investments are 10 =
sound condition. learn, from reliable authority
that the banks IN this city, Augusta never stood
better than at the present tune. They can paw every
depositor ami have a large surplus left. Now have
the banks IN Augusta any advantage over banks in
other localities | cannot see how such can be
the case, unless they have more efficient board of
officers. But | do not think the tax should be
reduced to make up for mistakes or lncompetency
Of officers.
Are not business men failing all about US And
can We reasonably expect 1t to be otherwise, so
long they are obliged to pay the tax on their
own properly which i visible, and also that
of their ntla hh which Is MD or exempt by law.
from taxation For It amounts TO that. Our State,
county, and municipal taxes must be paid, aud II
reduce the tax on one class of property we
must proporlionaey increase it on some other
class.
Geutlemen. there Is too much good sense, and
too much common honesty in this honorable body
even to he guIlty Of an act SO uuJust, so partial
to one class, 50 burjeasOme to another class, and
entirely wanting in every principle Of honesty
and fair legislation As the enactment Of the pro-
posed amendment would be. We are not here to
legisl4te m the interests of Que class against
the interests Of some other class. | be-
lieve we all iuteud so far A. able, to ex-
tend equal and exact justice to all classes aud sec
ions. But if we err, let Us be careful that it he
on the side Of humanity, aud not in the direction
by which greater bUrdens shall be placed upon
those OF onr own citizens who are already bend
ing beneath their load.