The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1878-01-12

The Changers are an intelligent body of
men, sharp in all that relates to their ma
terial interests and generally on the look
out for the main chance. But they have
not studied political economy to much
profit, or they would not have favored a
tax on mortgages. A Landowner" dis
cusses the subject with ability in late
number of the Port Tobacco Times:
Among the subjects that claimed the con :
sideration OF the State Grange, at its recent
meeting in the city of Baltimore, notice that
the question of repeating the law exempting
mortgages from taxation, received no small
degree of attention. The newspaper report
Of the proceedings states that Grand Master
Moore made report advocating repeal Of
the existing law on the subject, and that the
report was adopted, and committee appoint
ed to memorabilia the Legislature to that end
The argument of the friends of the measure
seemed to be that the exemption of mort
cages from taxation imposed heavier burdens
onthe real and personal property of the State,
while repeal of the law would measurably
tighten and decrease the taxes now pressing
heavily upon the agricultural classes. Il was
stated in the discussion that mortgages in this
State represented an assessable value of S75,-
600, 900, and that the lands and personal pro-
perty of the people of the State would be
relieved to that extent. Whether this enor-
nous sum is now in the shape of mortgage
loans on the real and personal property of the
State, | am not prepared to say. If the
statement be true it is one Of the strongest
arguments that can be adduced in favor of
the present law, and clearly evinces the wis
dom and foresight of those who framed and
passed 1t. 1t shows how potent the law, ex-
empting mortgages from taxation, has been
in inviting capital from the cities and outside
the State into the midst of our agricultural
communities, where it is at this time SO much
needed.
The action taken BY the Grange on this sub
lect 1t seems to me, Mr.. Editor, is most shoat-
sighted and i'll advised. While invoking aid,
through the Legislature in behalf of the asri-
cultural community, the measure of relief ad-
vocated by it would be fraught with the most
deleterious consequences. Let us examine
this question for moment, and see what
would be the practical effect and operation of a
repeal of the existing law. Scarcely would
it take its place on the statute book before
the holders of the S75, 100000 in mortgages
would say to their mortgagors; 1--WE lent our
money TO You on the plighted faith OF the
State, speaking through its Legislature, that
It was not to be taxed, we now say to you, I'M
less you consent to pay the taxes now imposed
on us, we will foreclose our mortgages and
sell your property. Thus one of two results
would inevitably follow the repeal of the
present law. Either the poor mortgagor, who
is already paying taxes TO its full value on his
farm and personal effects, would have to pay
the tax levied on the mortgage or submit to a
foreclosure of the mortgage and a sale of his
property. He would be between Seylla and
Charybdis. The logical effect of repeal of
the law would be, not to shift portion of the
burden of taxation from the oyerburdened
shoulders of the land owners, to that of the
mortgage holders, but simply to impose the
additional mortgage tax on the debtor class
of the community, and all those whose pro-
perry unfortunately happens TO be covered BY
a mortgage lien. Ii Is idle to suppose that
the lender of the money will not require the
borrower to pay the mortgage tax. When
the loan was made the law exempted il from
taxation, and the contract was made in refer.
ence TO the law as it then stood. He who
lent 81 900 on mortgage at 6 per cent. in
terest will not likely be content to have that
curtailsd II per centum, and instead of per
cent. receive only about Al per centum as In
terest on this money.
But suppose the mortgagor is unable or I'M
willing to pay the tax, which the repeal of the
exemption would impose on the mortgagor,
and a sale is made of the mortgaged premises
The mortgage debt is cancelled: the land in
whose hands it may pass alone, remains as
the subject Of taxation, while the mortgagor
puts his money in his pocket or seeks an in
vestment that will pay him better interest than
. mortgage taxed with State and County taxes
in MARYLAND
forbear Mr.. Editor to call attention through
your columns TO the great loss and distress
that would be inflicted upon the agricultural
classes by reason of the many forced sales
that would inevitably follow in the wake of
the repeal of the law exempting mortgages
from taxation. II the state of things prevail
ing in this county is an idex of the rest of the
State, there never was a time when there was
such an alarming depression, such financial
distress among all engaged in agricultural
pursuits. The man whose farm is covered by
a mortgage lien may esteem himself fortunate,
if at the present price of farm products, he
can pay his annual interest, and meet his cur.
rent expenses. This is no time for the Leg
islature of the State to turn the whole creditor
portion of its citizens on the debtor class In
my judgment Mr. Editor, the State Grange
has mistaken this whole question, and the
proposed legislation will inhict heavy and
lasting injury on that interest, in which we are
all interested, and Of WHICH the Grange is the
especial guardian. In CONCLUSION Mr.. Editer
| will here express the hope that our Senator
and Delegates will take firm and bold stand
against all such legislation; and that they will
not sanction by their votes measure that will
be productive of evil unmixed with any COM
pensating good.