Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-02-19

IN HOUSE OF REPRESENTATIVES,, FEB l4th, on
THE PROPOSITION TO DECREASE THE STATE
TAx ON SAVINGS BANKS.
Mr.. Speaker
l think it is an unfortunate time to present any
such bill as this to this House Here we have a
proposition To lower the tax on savings banks:
whlle at the same time 1t Is proposed to increase
the rate Of State taxation to five mills on the dol
lar, almost double what it was last year pre.
sumo 1t Is necessary to increase rate of State
taxation Jour Finance Committee see this necessity:
of course II must be apparent to them; but per
haps It Is not As yet apparent to all the member.
OF tins House. But II we are to increase our rate
Of State taxation to such an en- normous extent wby
Is such proposition as this presented to us Why
are we asked to reduce the tax ON Savings Banks?
Why II money cannot pay a tax, what is there in
this State or IN this country that CAM If have
farm or real estate of any kind, must paw from
two TO hve per cent. on its valuation, according
to the financial condition of the municipality 6
which live. AT the same time my property NAV
be mortgaged to one of these savings banks and
all my energies taxed TO the utmost 10 meet the
interest with little or no hope OF ever saving nv
self from its clutches. Mr.. Speaker, there are
many in this State in just this condition; YOU
know them, l know them, all know them
lhey are TO be found IN great numbers in every
section of our State. But they do not come here
asking for relief, and if they did we should not
grant 1t to them we should tell them the property
- there and II must contribute its share for the
should tell them, you share in the advan of
our system OF government and you mu IL endure
your part of the burdens. Let us apply this
process Of reasoning to the case thst is before us
Here are savings banks in our day of prosperity
,hey have had their share. Money was crowded
IN upon them; II was Invested ut paying rates.
and large dividends were declared as the leeiti-
mate result. But sir, times have changed: we
in the midst of period OF unexsmpled de-
preston, and individuals, banks and all our insti-
t.,fs. f.nltn ia Har A. -.
asking for relief. Here is a property and Il ia
money, exempt by law from all pal taxation
and by law subject TO a state tax of one Der cent
and heie it comes be lore asking for re lief ask
ing of US reduction OF 20 per cent. that the tax
be reduced to Of per cent. On what ground
is this modest demand made ! Why is this re-
duction asked
do not know. presume il will be said that
the banks are having hard time. | presume it
whl be said they are suffering from the business
depression am wiling to grant you that this is
the literal and exact truth. / make no exceptions
to this statement, but do say it is no good and
valid reason for the passage Of this bill. They
are suffering, there is doubt of it, and not the
banks alone, speaking of them as a corporation;
in many instances their depositors are suffering,
and sometimes, fear they feel that their conf
dence has been i,placed-that they are the vic-
TINS OF Encouragement. But for that, is
not every business, every business man, every
industrial enterprise sufte ing in equal degree
Are not our shipbuilders, our lumbermen. our
manufacturers all our citizens, capitalists and Ia
borers, struggling as they never struggled before
ne answer to this question is,- will not give
the answer, it answers itself. Why then are we
asked to legisate IN favor of the banksi Why is
this particular and special interest selected for
relief al the same time nesping additional bur-
dens on all other interests suppose 1t will he
sand that il is IN the interest of the widow and
orphan. suppose II will be said that it Is in the
interest OF the poor farmer that this bill is framed
| have noticed that when anything Objectionable
IL brought in here 1t Is always for the interest of
The poor farmer. lie is the to be benefited.
Gentlemen will rise up here who never earned a
dollar by the sweat of their brow in their lives,
and their hearts will overflow with love for the
poor farmer As they tell us of their devotion to
his cause, his interests the tears almost roll down
their cheeks. MIR. Speaker, do you believe them
DO any Of us believe them' No, sir. We know
what they want. 1t is votes-votes enough to
carry some measure through | protest against
any such action IN this case. Don't bring the
poor farmer in here. Tell us Just what YOU know
TO be the truth, and what we know be the truth,
and that il, that this bill is designed to help the
banks. me Al those that constitute the corpora
nDn, those who manage and control the money of
the depositOrs. 1t s of course claimed that the
depo-ilurs will be benefited by tins bill. do
not believe II, nobody believes it and if such
should be the case, | should be just AS much op-
pored to the bill This Is not time to tighten
the burden of taxation on capitalists.
tell you the person who has money on deposit
10 uaN, he ine amount ever SO small, Is capitalist.
lie needs no relief Ills condilion is immeasurs-
bly, superior to the great majority of our cit zens
lie can pay the small tax now assessed mon him
without inconvenience. lie has money to pay
taxes with. In the name of the poor people of
Maine, | protest ayan st this attempt to
hg hten the burden of taxation upon class who
are better able to pay taxes than any class of our
citizens. Such legislation as this is no doubt
pleasing to bank presidents and other officers.
But TO the great body of our citizens it is the most
hagrant injustice. By the law Of our State, half
Of the savings bank tax goes TO the benefit of
schools. But this bill is amended that the
schools shall not suffer any loss Of school money.
This Is amended in this manner so that it can be
carried through, but this amendment does not
lieye the bill OF Its Objectionable character. The
idea of extending relief to this interest at this
time, when we are seriously proposing TO Increase
the outden Of taxation to such enormous extent,
If 1t were not unjust would be absurd. Gentle
men, let us not be guilty Of passing ths bill. Let
us not stultity ourselves by submitting TO this alb
surd demand. Let US not be unjust to our con-
sttuents. Let equal and exact justice be done to
all. Let each and every interest-savings banks
incuded-bear its proportional part OF the bur
dens made necessary by the requirements of
government, ana when the DARK cloud of depres-
sion has passed away, aud the sunlight OF pros
perity has 0awned upon our State, then this ques-
ton will be settled Returning prosperity will
bring relief. ANY other method of disposlng Of
this question ,uld be the gro,sest injustice. Let
this interest, well able to take care of ITSELF
stand fail with the rest of us. II we can lower
anywhere, let us lower our rate of State taxation
To OF IL mills on the dollar Such action on
our part would be just to all the citizens of
state, credilable TO ourselves aud highly pleas
ing to our constituents.
Mr.. Speaker, have no fears of the result.
have TOO high opinion of the intelligence of
this House Gentlemen, am confident you will
not suffer this bill-so Objectionable 10 every
sense-to pass. am well satisfied that when the
final vote Is taken, you will indefinitely postpone
il by q hands Jme ma jOiiy.