The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1882-02-11
For Ike Democratic .4drocate.
Taxation of Mortgages.

4
of the public taxes for the support
of the government, according to his actual
worth in real or personal property. Bill
Of Rights Art. -.
'.That no aid, charge, tax burthen or fees,
ought to be rated or levied, under any pre-
tence, without the consent of the Legislature.
Id. 1lt. II.
Zines, duties or tares may properly and
justly be imposed, or laid with political view
for the good government and benefit of the
community Id. Dirt. -.
1.-The legislature ought to encourage the
diffusion of knowledge and virtue, land gen
eral education) the promotion of literature,
etc, agriculture, commerce and manufactures,
and the general moderation of the condition
of the people" d. Art. f3
A political measure may be defined rs a
measure taken or adopted by the legislature
or government for the public or general good
of the people.
All do not agree as to the benefits to be de-
rived from certain measures or class of mea-
sures adopted and put in action by the major
ity in the government. And this difference
OF opinion gives birth to political parties and
factions. 1t follows, logically. from what has
been said, that the legislature has the eonsti-
tutional power 90 exempt certain classes of
property from the burdens of taxes; the
power to impose taxes implies the power.to
refrain from imposing taxes. The power to
act implies the power not to act. The Court
of Appeals has, therefore, acted in strict lOgi-
cal conformity with the constitution-the
sovereign will of the people-in declaring the
several exemption laws enacted by the legis-
lature constitutional and valid, when the
court has SO declared.
The argument, and conclusions based there
on, Of Commissioner Woolford in his last Re
port under the division Equality of Taxa
ton, page ten, &c, Is therefore of no force
or weight, and is absolutely erroneous.
The provisions OF our law relating to the
levy and collection taxes are eodihed. mann
". in Article eleven Of the Code Of 1878.
BY the provisions Of that Article certain
items Of property are declared subject to taxa.
ton. To-wit:
''Al investments in private securities OF
every kind, nature and description, belonging
to residents of this state. except mortgages
upon property wholly within this state, and
the mortgage debts respectively secured there
on the real property located in this state,
etc. and all other property Of every kind ma
ture OF description within this state, shall be
liable to be valued to the respective owners
thereof. and assessed and taxed as the prop
erty Of such respective owner. I'D. fisSs.
p. - Code.
annually inform himself lot all property,
stocks or investments in his county iia-
BILE TO taxation, : aud shall value the
same ~ the fall cash value thereof. N. sS5i.
that the clerks Of the Gircuit and Orphans
courts. in the several counties and city Of Bal
tiinOrc, shall report TO the assessor or collec-
tor in the country, &c. all alterations nl
property. completed chaneeTy sales. iadg-
ments and DEGREES rendered IN his os.ic2 or
court. so that the property mas be assessed
and the taxes collected from the owners there.
%, hut Judgment renewed y not taxed anew.
III. az. 50
In an article published IN yoar issae "a
April 30 1881, took the position sud ex-
pressed ms opinion. hasiag i upon the law
a. stated above. and the decisions ~ our
Court II Appeals aud the Supreme Courts ~
other states. that to tax mortgages Was cen
trsary 10 public policy aud - opposition to the
best interests OF the people and IN = special
manner 10 the best Interests sf ihe farmer.
THIS Is a county and state largely composed
Of farmers aud agrieulturists- a hateVcr y an.
tagonistic 10 their Interests : aafsgoulssic 60
the best interests Of the siaie that a. D gen
eraI rule the farmer : = borrower noi lender
that tax upon mortgages Noaid he paid d.
reefls or indirectly ~ the borroWer-shst !.
the poorer class. nos by the leHdcg OF
richer class Ia second article pahiish-
cd in your issue of DceenbeF -, ISL, ]
say, ia effect, that Il ests tEr aoa drits o.
ssuiiis Is jlssstHsis and for The best la,eFesss
Of The people, there WIS ~ reason ar justice
in exempsing mortgages from tsNaisoa- Bss'
deus that aay lax mg.ou credits OF debts Is
ustihAlsle or for the hset interests II the l-.0-
PIE aud aSssgf tAzf avg m HIea q credit
~ q dcsf = roafraFB T. a ffsse psi5sir pesisrs
and sssfgsgrs A. fAf tssfa5 va aassf fsfraf ~ ~
consolidation
Nv position has al~sys heen tlse same.
am eplsoss.A "a thr saxafsun 81 ale-tgassss, "a.
cArsg Il = M ktxsrflaa II Il credit ~ GsfR. Il
i the taxation If thr shadow, nos the sub,
sisnce. Tangible. VISIBLE uszgirr = properly
sahieet 10 taxatiea n pTtpeFty having cash
yaiUc-a bond. node ur mortgage Is hul ne
symbol or shadow II the acinal property i
symb1Iiscs tax upon substance, and the
shadow Il that substance Is bat danii.e tax
anon the substance. sof Il = substance hni
shadow that aBsi he given the tax eollgclssF.
Bn; Il the people. after understanding shat
they are ahoas - do. declare i to b. ihci'
viii, rs n sovereign state, that the aCsRsl
property in the state shall pas a tax tlssal,is
the rate specified IN the Iaw-fhaf : thai
when the Law saFs tine the ststs ealss 4 tuurr
aud therefore Is Willing q pay fons instead ~
two. and this j. what she does wAen she en-
acts laws taxing credits. then, ! say, i i "a
absolute injustice aud alrsafsitss "a exenf'i ths
most valued srsccies II credit from TAXATION
bat there y % doubt ef the legality Of the ex
en,ptinn OF mortgages ~ Is seen iFcm the las
quoted above.
But the people, some et them. u0H &c
maud that this las ~ exemption lse repealed
To repeal that law woaid he equivalent Diax
INC mortgage. Sarh tax i Unconstitutional,
and therefore ilIegAI--beeanse il ) the taxa.
tion Of credit. A credit is not property wishin
the intent 81 the constitution See People ~
Hiberfian :. Inst, i. ~, &e.--EaliinTnia
case--ReEorfed III Law ]. \. ;. The con
stitufioR Of California reqalFes ~agl pEopesis
10 be taxed according 70 IL value =
The code SAYS personal properly include.
money, goods. chattles, eFidences Il debt
and all shings in action. The ease cites
above grew oat Of the si,enPi Of an assesso'
60 collect taxes upon certain mortgage, h.
claiming that mortgages Hene "evidencrs d
debt aud therefore taxable. The eonri helc
that mortgages arc rrislsaces q dot aud fhef
fore aof property aud fkeyefegs aof fazat<s-
Before a tax : levied ar collected, the sub
iect to be taxed must be assessed aud valued
al It's cash value The Law, fundamental IN IL
nature. requires taxes IL Be equal and uai
form. The subject or basis Of taxation IN thi
State or district, Is the sifa. the aggragaf,
SUM- Of all the Yslnes 10 che state ar district
The rate Of tax Is regulated by the needs o
the government and the value of thu sgb}ee
( 0f taxation.
Suppose for high political purpose, tbs
state requires and exacts tax Of 100 rents on
each dollar of value, the result Of such tau
would be the appropriation OF all the values
I Of ali the property ii the siate. II is demon
strated. that the state could receive no beneh
from evidences Of debt dne from one either
to another, which Mas payaale ont ef tbs
property-fo. all the property ~ the stats
which the state has taken.
II is, therefore. evident that i Is property
in actual possession or enjoyment that mus
in thu end pay ali taxes.
/ Credit has no value other then the value i
has acquired by reason Of the probability, tha
property having actual value upon which a taA
Is levied and collected. viii be applied 10 Oh,
satisfaction Of the claim il represents. ID
tax the credit and the property that must wipe
out the credit, it is TO tax the property AT i
double rate.
II al the property IN the state could be as
sessed at the same moment 81 fime. y S9qif
be seen palpably that 10 assess debt or credit
as property, would be assessing us . valuf
(property, that which had been elsewhere as
sessed as value property and therefore be &
double tax OF the one or the other value, that a:
visible and tangible property alone could pay
taxes. such tax would be paid from the visible
property. For example, Mr.. Doe owns
= IL "