Southern standard. (McMinnville, Tenn.) 1879-current, 1883-11-24
TAXATION OF CAPITAL IN THE
SOUTH.

The following communication from
Francis Smith, of indianapolis, Ind,
to the Southern Lumberman should be
read with interest by the people of the
South, and if the facts are as stated by
Mr. Smith, it is an important subject
for State legislation. If Mr. Smith Is
IN error in his statements as to the ex-
tent Of taxation on capital of foreign
individuals and corporations, the state
ments should be corrected. Whether
they are true or false the subject is of
sufficient importance to require careful
consideration. All taxation should be
judiciously imposed. We should en-
courage rather than deter capital from
coming among US for investment. Tax
alton should be equally borne by all,
but in order to encourage investment
in manufacturing, it may sometimes be
proper to protect such capital from tax
alton until it has had time to pay
dividend. Let us encourage capital and
capitalists to come among us and help
us develop our resources. The com.
munication reads as follows
Editor Southern Lumberman:
noticed for the first time the re-
marks of Mr. Waterson, in your last
issue. Mr.. W. is evidently not IA
miliar with the details of the case he
treats. All the printing and speech
making done in behalf of the South
will be of little effect so long as she
continues her present penny wise and
pound foolish" policy of taxing every
thing to death that comes within her
borders. Nowhere in the United
States are the licenses for permission 10
do business so general or SO excessive as
in the South. While in the North a
citizen or corporation of one State or
of foreign country, and who pays
taxes at home, may freely loan money
in another State without heing subject
to a second taxation thereon, the
very reverse is the case in the South,
where no sooner is mortgage placed
on record than it is at once pounced
upon by the assessor and placed on the
tax duplicate. The same is true of a
Northern mans money temporarily
lying in a Southern bank awaiting in.
vestment. Aside from this some States
Georgia, for instance-have on their
statute books laws which are absolutely
prohibitory to the cautious investor.
My firm has in the past three years
spent more money and hard work thar
any one else we know of to popularizt
Southern securities, both in the North
, ern States and abroad, and has, il
. spite of uninviting legislation, negotia
, ted nearly 81, 100000 worth of South
ern securities at within legal rates o.
interest, and with great benefit to many
; hundred planters, and is trying to ex
tend the business. My firm has paiC
' much more license in the past TIVE
years in the South than it has had t
;, pay in the North in the same business
+ in the past twenty years.
n So far as practical experience is con
= cerned, it would seem that the objec
g of the South in inviting business
!. money and people to emigrate there,
E to get something more to levy take
f upon.
=. Many large insurance companies ar
g not allowed by their charters to loa
&c money where they do not write insu
= rance. The terms on which the South
- ern States allow this business to b
70 done by strangers are almost prOhib
Ie tory.
If the South wants money sent t
lie her for investment as freely as it is sen
lie to the Northwest, she must sho'
RS something more than printer's>ink in
in vitation for it to come She has he
lie future in this respect in her own hand!
le If you think that the publication {
as this letter would bring the above poin
to to the attention of Southern Legislation
is to any effect, it is at your disposal fc
j. that purpose. Yours truly,
le FRANCIS SMITH.