The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1878-01-12

in our country, and will always be at
tended By many difficulties Twice
within the recollection of citizens, not
claiming the dignit, of the oldest in
habltant has the State of Maryland
oppressed her struggling industries by
the imposition of this burdensome mort
gage tax, and as often been compelled
by its injurious tendencies to abolish it,
In lS4l, we believe, the late Mr.. Thos.
j. Donaldson, then The Chairman of the
House Committee OF Ways and Means,
achieved considerable distinction in the
Legislature by the fathership of the
assessment act of that year This bill
imposed a tax on mortgages, and ex-
tended very widely the area of taxation
1t was then regarded as an exigency of
the times. The State was largely in
debt, its credit impaired, its revenues
limited, and its general financial condi-
ton not the most promising How the
provisions Of this act pinches the tax
payers of the State, is indicated bv the
number of appeals that reached the
courts and by the well-known and
famous decisions, known to LAWYERS as
the Maryland tax cases. But so far as
the mortgage is concerned, the expert
ment was an unsuccessful one: capital
was driven from tie State, for the sim
pie reason that, in other States under
I more favorable laws, money could be
borrowed more cheaply upon landed
security than under law in Maryland
that first taxed the land and reimposed
a duplicate tax on the security based
on it. The repeal of the law followed
probably about 1855 or G. After u
happy interregnum of about ten years,
the law was again re-enacted with the
exemption of purchase-money mort
cages, which, after some modification
in 1867 restricting the exemption to
purchase-money mortgages that re-
NAMED in the hands of the original
mortgages, it was finally absolutely
repealed in 1870. And so we hope it
may remain. Present space will al
low only notice of an objection or
two to the proposed legislation
Maryland invites capital from abroad.
The truth is, she needs it, and an infu-
sion of enterprise with it. Thousands
of acres Of her unimproved and unpro-
ductive lands to-day invite settlers from
other States. She offers to the indus
trious immigrant, with little capital, a
better home and as profitable an invest
ment, perhaps better, than most of the
pictured Edorados of the West Not
as a grain-growing State indeed, but
in successful stock raising and in the
cultivation of the farm products, which
proximity to markets and her magniii-
cent rivers, as a means of traffic, render
profitable Again, what field for the
development of manufacturing enter
prses she offers. Who can calculate
the prospective value of her unim-
proved water powers scattered all over
her wide area! Imagine Maryland
with her unavailed-of facilities for
manufacturing, located side by side
with Connecticut or Massachusetts,
and calculate the average value per
acre of her lands. OF course there are
many decrepit specimens of an efiete
arstocracy still surviving in Maryland
who thank God that she is not so To-
Gated But we can sincerely discount
that blessing, by thanking our Maker
that he is SO rapidly taking that class
of Mary land non-producers TO himself
These unproductivc lands, these unm,
proved water powers, will add nothing
to the wealth of the State while they
remain in their present hands They
must find new owners. Not in the rich
farmer or the wealthy manufacturer,
but in the Industrious, enterprising set,
tier, be he manufacturer or farmer, who
combining in himself the representative
of both labor and capital will invest
the one and employ the other most Judi.
ciousl V. Whisper in this mans ear the
fatal secret that high rates of interest
and taxed securities for needed loans
are to be his unhappy business portion,
could you induce him to become happy
tax payer in Maryland? He would
not hesitate at the assessment of his
farm or mill, but would not voluntarily
submit to an additional tax on his in.
dustry. And vet the mortgage tax is
just this and nothing more.
Not only does this system Of double
taxation discourage and prevent capital
from coming into, but it is even more
potential in driving it out of the State
This objection the Governor especially
instances in his message II the law
be re-enacted, one or other of two con-
ditions must occur. Either the mort.
gagor must, in self protection, be secured
by law against the imposition of the
tax, or the burden must fall upon him
as borrower Practically, he assumes
it in one form or another If not in the
shape Of covenant to pay all taxes on
the loan, at least in the form of bonus