Evening star. [volume] (Washington, D.C.) 1854-1972, 1878-01-04
Taxation That Drives Capital and
Business Away.


Taxation That Drives Capital and
Business Away.
Governor Carroll Of Maryland. in his annual
message sent to the General Assembly yeSter-
day. in dealing with the question of the
revival of the obsolete mOTtgage-taX. SuS-
tainS the exemption of mortgages from
taxation by the last legislature upon
the ground. first that il is a double tax
which always falls heaviest upon the Dor
rover, who is least able to pay: and second.
that by retaining the tax on mortgages they
were keeping up policy that would drive
capital from them and render real estate
worthless as a borrowing security. when it
ought To- be the best that can be given for the
return of money loaned. The community, he
Says.which can borrow money at the lowest rate
fOT the Improvement of its lands and houses. il
surely the most prosperous, and if We drive
away capital by passing tax laws that reduce
the interest. or offer il no inducement to come
among Us. We cannot expect the enhancement
of real estate. which alone can add Il solid in
crease To our taxable basis.
These are precisely the reasons why the tax
upon mortgages in the District of Columbia is
deemed 81 Objectionable. a. set forth repeat
edly in this column. One result of the tax has
been To drive capital away from this District
to Maryland for investment. and that state
has benefited by the operation precisely as
set forth by Governor Carroll. 1t il To I've
hoped that our District authorities will mani
fest the same SagaciOuS interest in the pros
perity of this community shown by Governor
Carroll in behalf of the people of Maryland.
and recommend To Congress the abolition of
the tan upon mortgages.
III Russia succeeds in her plan of direct and
separate negotiation with Turkey a precedent
will be set which will DE of great value to her
The decision of questions involving European
Interests has never before been intrusted to a
single nation. unless that nation had acquired
the privilege by force of arms and could de
fend il against all opposition. Russia persists
in her claim. and "a all the other European
powers but England seem disposed TO WELD
her chances for succ esS are good. Meanwhile
the way of the English statesman is hard.
~O~
The proposition to reduce the internal reve
nue. tax on tobacco and whiskey, and increase
il on something else To make up the deficiency
thus caused, on the pretence that the pro-
dueers Of those two articles are oyertaxed
and pay more than their just proportion to-
ward supporting the government. is the cham
piOn humbug of the age. Ii il 80 apparent in
deed, that hardly any sane person can be for
moment deceived by it, and the wonder il
that any one can be found To seriously adyo-'
cate il. II is true that the tax on those two de
tTuctlVe luNurle. paid, or rather advanced,
in the first instance by their producers: but il
is equally true that the amount 80 paid or ad-
yaneed is at once added To the price of the
article, and collected back the mOment it is
sold or changes hand. The man who ulti-
mately and really pays the tax in each ease is
the cOnSumeI,-the one who smokes or chews
the tobacco or drinks the liquor. Ii is hardly
necessary to add that no product or person can
80 well afford to pay a tax as the two articles
named and those who Use them.
George WashingtOn-not plain George who
couldn't tell lie. but his multiform eolored
nameSake-seemS to have broken out all at
once, into the most reckless and disreputabIe
character Of a demoraliZed age. In George
town. few days ago. he hacked to DEATH not
cherry tree, but eOlOTed man and brother
and in the Police Court yesterday he was con-
yicted on charge of razor fiOuTishng. and
shortly afterwards turned mp again and har-
rswly escaped a sentence for chicken stealing.
This is not the Kind Of Washington memorial
To gladden. the patriotic heart.
Gambctta. after the trying times through
which he has lately passed and the arduOus
labOrs that fan Ia French party leader in
elections with the government against him.