The Daily Astorian. [volume] (Astoria, Or.) 1876-1883, 1883-09-06
Mortgages Us. Taxes.

- s~A- -N-NN~ 49, - 49,
only on property Except small
amount on males between 2l and
45 years of age) it follows that
men of property pay the expenses
of protecting not only themselves
and their property but the person
al liberty and safety of those not
possessed Of taxable property.
Property and person should
then pay for their own preservation.
Property in Oregon should not be
taxed to defray the expenses of
the state of California, nor should
the property of Clatsop county be
taxed to defray the expenses of
Multnomah. On the other hand,
all the property in Oregon should
contribute to the state expense; of
each county to the county ex-
penses; likewise, each municipal
tv, school and road district. Our
laws recognize this principle as far
as state taxation is concerned, by
not allowing any Indebtedness out
of the state to be deducted from
the assessable property. But the
Legislators neglected to extend the
provision TO the subdivision of the
state, hence, by counties, towns,
school districts or road districts
being indebted to each other, tax
alton becomes unequal. If a prop
erty owner in Clatsop owes TO
Multnomah Co. an amount equal
to one half the value of his prop
erty while it works the same as in
state taxes the owner of the other
half pays all the county tax. Only
one-half the property is taxed
while the other hall costs the
county just as much but pays
nothing toward that cost. For
purposes Of county taxation, why
not allow only the Indebtedness in
the county, and the same in
other taxable districts. What,
however, might be considered a
better way would be to allow no
deduction for indebtedness. All
taxable property, coin, etc., shonld
be taxed whenever found and In
the place where located. The
borrower objects that the money
loaner would not pay taxes. Sup
pose he does not; If the borrower
has all the loaner's money he
pays on it SO that nothing is lost
from the actual profit Of the
district. As 20 its working a hard
ship on the borrower, we think it
would benefit him. The loaner
would lend for an interest as much
less as the taxes would be, or
even lower. Interest in this state
is ten per cent, hard to get at that
rate, yet thousands perhaps mil
lions are invested in l.. s. four per
per cent because they are more
taxable. Taxation in this state is
not over 4 per cent, which with
interest at 10 per cent. would
make money worth net 6 per cent,
but as we have seen by its being
more taxable the lender is salts
fed with 4 per cent. net.
People who loan money for a
business are cautious; they don't
like to risk much, and shrink from
being subject to uncertainties. If
they loan money on long time
liable to taxation, they cannot be
assured of any given net amount.
Taxes may be increased. Special
taxes might be levied, and the
lender is all the time subject to
attaches on his income and profit.
But exempt his notes and accounts
from taxation and he will at once
put his money down to low
rates. Money from outside
will flow into the state until it be-
comes so plenty that borrowers
will be hard to find and interest
will be correspondingly low. In
terest was lower in this state be-
fore the taxation OF mortgages
than it has been since. The whole
matter lies here. The laws Of
supply and demand can not be
regulated by arbitrary legislation.
In all instances, the borrower has
to pay for the use of money, and
whatever additional expense may be
entailed by crude legislation must
be borne by the borrower. Hence,
his interests demands less tinker
ing with the matter and more op-
pcrtunity for these relations to ad-
just themselves.
A Successful Newspaper Reporter.