The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1884-10-15

Free Press pet reform measure is de-
rived from an example employed in the
consideration of this subject by the
Massachusetts, Legislature. The deduc-
tions were that under the new system
the MORTGAGE must divide his bounty
evenly with the mortgageor to leave him
as well off as he was under the old
even if he should give it all, the mort
gagee would still pay one-third of a tax
on property for which he owes its full
value; and further to enable the cred
itor to transfer this bounty to his debtor,
the outside public is heavily taxed. Now
what is the probability that the money
lender will voluntarily reduce his inter
est below the market rate by giving his
exemption to the borrower? What by
dividing it with him? And even if he
will loan money below the market rate,
how is G to be compensated for the ex-
ira tax he pays by reason of the reduc-
ton the grand list has undergone to
enable A to buy house of b without
paying money down or giving prop
erty equivalent for it? 1t is absurd to
reason that the money-lender will re-
duce his rate of interest. Exemption
or no exemption, he will get the market
value of his money as the farmer does of
his produce, and if the state pays him
bounty, he, like the average of hui
manity, will put it in his pocket
On its face this reform " looks very
much like scheme to exc out the
money-lender's income, at the expense
of the public, under the pious guise of
befriending the farmer and other mem
bers of the community who owe pur-
chase money or have borrowed on
mortgage security. The example of
Massachusetts is cited. 1t is asserted
that the rate of interest on mortgages
has been lowered from one to one and
one-haf per cent by the law passed in
that state in 1881, exempting from tax
alton money loaned on mortgages. A
committee of the Massachusetts legisla-
ture investigated this whole question last
winter. That committee, by a majority
of nearly two to one, after an exhaustive
hearing reported in favor of repeating
the law of 1881. Henry Vim, ESQ, an
expert in matters of taxation, and who
was counsel for the committee on ways
and means at the session here in 1882
in matters relating to taxing corpora
tons, made an argument before the
Massachusetts committee in favor of
repeal. In the majority report the
committee quotes Mr.. WINS statistics
of loans and interest rates. He proved
conclusively that while the rate on
standard state and railway securities
had declined since 1880 from three
fifths to four-tifths of one per cent, and
on some nearly one per cent, the rate
on mortgages had declined only about
One-half of one per cent. This fact was
proved, not by citing the figures of
some petty loan. 1t was the progress
sive decline in rates on from $780,
900 900 to $175 900. He showed
further that three-fourths of this decline
of about one-half of one per cent oc-
Cured in 1881, before the enactment of
the new law, and that the whole decline
was, in fact, entirely Independent of
the law. Like the greater decline in
the rates on standard securities, it was
from the operation of causes producing
ageneral decline in the rate on all securi.
ties. Whether mortgages are property
or not, there are good reasons why they
should be taxed, notwithstanding Ger.
tain very confident assertions to the
contrary. Had A paid the money in
full for his little place, the state would
have incurred no great expense by the
transaction, but in buying without pay
ing A and b have made contracts which
the combined machinery of govern
ment, legislature, courts and shriev.
atty, is required to define, protect and
execute. Laws relating to mortgages
cover the statute books, and decisions in
suits growing out of them fill the court
reports. At the last session of the leg
islature it cost thousand dollars day
for every day expended i'll considering
this matter, and it will be the same this
year. The only way the public can be
recompensed for this expense is by tax
ing mortgages, the responsible cause
Not to tax would be double taxation
to tax is simple justice to the general
public.
Since the above. article was writer
we have been informed that the aggre
gate tax rate in Burlington for 1884 il
$1.4O on the grand list. Substituting
in the illustrations the local for the
average rate, the miniature community
under the present law would pay taxes
as follows:
b, $500 mortgage note. IL
c. on $500 merchandise unincumbered. ...,..,. II
To raise similar amount of money
under law practically exempting mort
Cages this community must raise tn,
rate to $2.l0 and pay individually al
follows:
b, on $500 note exempted. ACKNOWLEDGEMENTS.
@, on $500 merchandise unincumbered. l6 8
AS and C's taxes have each been in