Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1880-02-06
TAXING MORTGAGES.

The following synopsis of the remarks of
Senator Peter, Of this county, on the propo-
sition to tax mortgages will be read with
interest
Mr.. Peter addressed the Senate, contend
ing that mortgages should be taxed, and
there was no sound principle which could
Justify their exemption. He had listened at
tentively 10 the debate on the question, and
the opponents Of taxing mortgages had based
their objection to such a tax on four grounds
First, it would drive capital away; second,
the borrower would have to pay the tax
third, it would be an indscemsnt to fraud
and evasion of law; and fourth, that capt
tai is necessary TO make lands productive.
Mr.. Peter combatted each of these grounds,
arguing that capital would go where it would
pay the best, where it was safe, and its return,
with interest. sure and certain. Legislation
should look to the future as we'll as to the
present, but unfortunate the legislation of
late years has been for a class and not for
the people generally. Mr.. Peter then briefly
alluded to the legislation of Congress in ex-
empting millions of dollars of government
bonds from tax for the benefit of those who
were able to invest in them, and said that
these bonds, which were first payable In
currency, were afterward made payable in
gold. The reduction of interest on govern
mcnt bonds 10 per cent would induce capt.
tai to seek investment in mortgages at 8 per
ceat, for land was more sure, more stable
than government or State bonds, and good
financiers would always look first 10 mort
cages on real estate for Investment The ar
gument that the borrower would have to pay
the tax, and that the imposition of a tax
would be an inducement TO fraud and eva
sion Of the law, were unsound. Weare not to
believe that all the moneyed men in the State
were dishonest Shylocks, seeking to evade
the laws; and TO argue that law should
not be passed because some sought TO evade
or defy il was not tenable. We might as well
say that the government excise law should
not have been passed because moonshiners
and illicit distillers violated IT, The State
tax commissioner had said in his report that
two hundred millions Of dollars, invested in
mortgages in Maryland, were exempt from
tax Was this rightg Was 1t just TO the
other taxpayers that this enormous amount
should be exemptedS No community could
flourish under such system, and il would
result in the establishment here Of moneyed
aristocracy. But there was a still higher, a
still more potent reason why mortgages
should be taxed, and that was the absolute
requirement Of article 10, of the DECLARE.
ton Of Rights, that "every person in the
State, on person holding property therein,
ought 10 contribute his proportion of public
taxes for the support of the Of the govern
ment, according 10 his actual worth in real
or personal property" II we exempt mort.
cages, we say the man who owns hundred
thousand dollars invested in them is worth
nothing. lie was not in favor Of the amend.
ment 10 its full extent, but was willing TO fix
q certain time, say, five years, before tax
on mortgages should take effect There
might have been day when il was the true
policy 10 exempt mortgages, but that day
bad passed.