New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-04-29

One of the principal instructors says his behavior
was "unexceptiOnabe in everything" Andthls
is the man who, we are asked to believe, I'D
order to practice vile imposture' cut OIL the
lobes of his own ears
SHALL WE DRIVEAWAY FOREIGNC1PIIALf
Much excitement was caused in Wall Street
Yesterday by the discovery that considerable
loans OF foreign capital had been called III by
the Bank of Montreal and other institutions,
because of the passage OF the bill su0Jecnng
such capital to the same taxation as is borne by
other personal property. To some who have
never investigated the subject, it seemed very
simple matter indeed and they declared with
much heat that such capital obviously should or
should not be SO taxed, according to their per-
sonal interests. Others who have given the
matter more consideration, while they see that
the subject is one of real and serious difficulty
EXPRESS the hope that the Governor will be dis
posed to send the bill back with recommended
tiOn that other important changes should he
made in the system of taxation, without which
the pending bill would work serious injury to
the commerce and industry of NewY York.
At first blush, it seems reasonable to many
that all property employed within this State,
under the protection of its laws, should be
equally subject to taxation. Many bankers, too,
have for long time urged that it was unfair to
those who are citizens of the State, who own
other property which is also subject to taxation
as well as the capital employed in banking, and
who have a stake in the country and per-
manent interest in its welfare to subject them to
competition in the loan market from foreign
capital which is not taxed. 1t seems to them
that the foreign lender has an advantage over
them nearly equal to the amount of the tax
which they pay to the support of the govern
ment by which both are alike protected. Again,
the real estate owners in all parts Of the State,
and particularly the farmers, as they see that
great part of the personal property here escapes
taxation, and are casting about for some way 10
make such property bear its share of public bur
dens, are apt to conclude that large amount
escapes without good reason under the cover of
foreign ownership, and to look with satisfaction
upon a measure which promises equal taxation
for all property.
But ought property to be taxed twice7 The
nonresident is not taxed on personal property
here, because it is presumed that he is taxed on
what he owns under the laws Of the State in
which he lives. If a capitalist lives in Hartford
or Boston, and pays taxes on the full value of
his personal property under the laws of Massa-
chusetts or Connecticut, certainly it would be
contrary to public policy to compel him to pay
double tax If he lends his money in New-York
| There could be no surer mode of killing the
commercial and industrial prosperity of the
State than to inhict penalty, in this way, upon
the capitalists of other States who lend money
here to support the trade, run the factories, and
employ the labOIers of New York If they do
not nav where they live, that is the loss of the
States and cities In which they reside, but New
| York cannot afford to force them to use their
money elsewhere.
The British, French, or Canadian capitalist
does not stand upon any different footing, ex-
cepting as the policy of Otler countries encOur-
ages the accumulation and employment of CAPT.
tai by relieving 1t in part or wholly from taxa
| ton there hut the capitalist who loans his
money in New York, If he lives in Montreal,
London, or Paris has to pay his share, directly
or indirectly, to the support of governments
| which, as Americans are in the habit Of saying
| with pride are more costly than our own. II
the tax is not directly levied upon the capital
| engaged in specified branches of business, that
| is a matter pertaining to the governments of
| other countries, which see fit to reach property
| by methods altogether wiser, In many respects,
| than those here employed. Not the less, prop
| erty is taxed there whether it is loaned in New
| York or elsewhere.
1t ought to be the policy, in comparatively
new country, and especially IN city aspiring to
become the financial centre of the civilized
world. to invite hither capital from all other
lards, by making its burdens as light as posi-
BILE. so that it may come in larger volume to sup
| 70 n
mills and factories and to place at our command
tfe power over the worlds exchanges which
London has 40 long welded. An entirely differ
ent policy has prevailed thus far New-Yori
has grown in spite of Il most laundering, lib
eral, and benighted system of taxation. We
should have treated visiting capital as a well
come guest, knowing that it cannot find employ
ment here without adding vastly to the perma-
nent wealth and prosperity of the State. In
stead, we have treated it as an intcrlOper and
trespasser, deserving cOndign punishment if ii
can be hunted down anywhere on the premises
The pending bill is really in harmony with the
mistaken system which prevails in this State,
but it ought not, for that very reason, to be-
come law. On the contrary, the Legislature
should set itself at once TO the task of clearing
away all unnecessary and vexatiOus burdens
from banking capital of all kinds wherever
owned. Governor Cornell with his long expe-
fence in business life, must see that the measure
pending is calculated TO do great harm to the
city and the State, and that the true remedy
for the inequalities which now exist is not to
dive foreign capital away, but to devise more
intelligent methods for the taxatiOn..Of personal
property, and particularly the property en-
ployed in banking.
| ADAY OF CONVENTIONS.