Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1884-03-06
Taxation Of Mortgages.

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The Maryland Legislature is wrest-
ling with the question of the taxation
of mortgages. The records at Freder-
ick will show that this question is Of
interest to large number of the citi-
zens of this county, borrowers and lend
ers. Inasmuch as there are hundreds
of thousands of dollars in the county,
neither invested in property direct, nor
in mortgages more than would be re
quired to purchase all the property
upon which a debt under a mortgage
rests, it may be we'll to consider the al
most certain to be lestened tax basis
upon which all property would be ra.
ted in case investors in such mortga-
ges found it advantageous to foreclose
and buy at sacrifice, paying the tax
on the property direct in lien of their
mortgages. A farm, to-day, well man
aged, will pay more than six per cent.
less state and county taxes, and money
lenders could become proprietors of
large landed estates ard receive bet
ter return on their money, not even
considering any sacrifice at which Dor
rowers would be compelled to see their
lands sold. Further, every large debt
iloated by the National or State gov
crnments is protected against taxation
and the individual borrower should
have like privilege Of populariz;ng
the securities offered for his loan.
If the State or the Nation may go to
monied men when in pinch and say
to them ut is necessary in order that
promises be met in order that the
business interests of the State or Ma
ton do not suffer in order that good
credit be not impaired that loan be
negotiated and to Insure its popularity,
the State or Nation proposes that it
shall be not subject to taxation" if 50
much may thus be said and done, to
popularize loan made by a State Or
Nation, by what code of morals, ethics
or business does legislator deny the
same right to the individual citizen !:
That the cases are parallel, no one will
be able successfully to refute; it is a
question of loan to an individual rep
resenting II large class. especially of the
farming and manufacturing population,
on the one hand, and of the State, rep
resenting these and with them, those
who are financially Independent in
State or Nation, on the other hand.
That State and National loans are
made and declared free from taxation
because they rightfully should be, is
not to state fact so near the truth as
to say that it is done in some instances
because such loans could only be made
by thus popularizingSthem, while in
other cases, shrewd tinanciering sees
that the taxpayers generally will be
benefited by the direct profit brought
to the State by the advanced prices
that will be offered on account of the
popularizing method Of relieving them
Of taxation in the latter instance only
can it be said that it is rightfully done.
A farm paid for and upon which
then sum of money is borrowed for
purposes of improvement adds just that
much to the tax basis as soon as such
investment is made; as the general
tax payer is benefited by just so much
reduction in the rate as the the basis is
increased, should not the State agree
to say that it is right to popularize
such securities?
We very much fear that an i'll con.
sidered, not to say ignorant, movement
of would-be political economists; I'M
thinking men and men who are not
capable Of other than the most super
fetal reasoning the class who cannot
conceive it possible to protect the CAPT
talist and in so doing, protect the de-
pendent borrower and in way, than
which it may not be better done, such
persons are, we fear, at the bottom of this
movement and for purpose, the least
creditable, the idea of the demagogue
to flatter the people generally that as
against the aut"crats. Of the deep purse,
they propose to become their (the peo-
ple's) bulwark.