Wood River times. [volume] (Hailey, Idaho) 1882-1915, 1886-12-13
OUTSIDE CAPITAL.
How 1t May be Encouraged to Come
Here, and the Benefit II Will Be,

Here, and the Benefit 1t Will Be.
To THE EDITOR OF THE TIMEs:-
In closing the series of my articles,
beg to call to view the importance
to US of fostering and inducing the
coming here OF capital from without
to help in the development of the re-
sources of the country; bearing in
mind that, in order to induce capital
to come, inducements of security and
gain must be held out. 1t is false
idea to hamper it with direc: taxation.
1t should be free, and for the time
being remain untaxed. The people
of Idaho will find sufficient increase
in the revenues created by the in
crease of taxable property which its
presence always creates. For exam.
pie, every thousand dollars that can
be induced to come here from the
outside is for so much local blessing,
for the money cannot long remain
idle, but Immediately goes to the i'm
provement of something or other !;
and though the money remains not
directly taxed, the improvement it
fostered added for so much to the
assessable value of the property to be
taxed-a logical sequence. Suppose
a million dollars should be induced to
come here from foreign parts, and be
invested here, no matter how. Say
it be loaned at interest; the lender
may not cause any improvement to
take place and thereby no increase in
the local revenue, and would to that
extent be deadhead but the Dor
rover never borrows without a pur-
pose-he cannot afford it. Every
dollar he .borrows is put to use in
some improvement or other, the money
is thrown into general circulation, and
various enterprises are stimulated.
The money may in time withdraw,
but the enterprises and improvements
remain; these increase the general
wealth of the county by becoming an
inherent part of the local wealth to
the exact amount of one million dol
lars in the first instance, and to so
much more as by its aid brain and
muscle will and can produce, stimu-
lated by its presence; therefore an
immediate benefit is reaped from it
first, through an accretion OF the
taxable property; second, by the
stimulation it produces in the activity
OF the brain and muscle of the people
But, Mr.. Editor, the money that comes
here to be loaned in the first instance
is not always withdrawn. A great
deal thereof remains here and becomes
acquainted with the resources of the
country, and is often invested direct
ly; so that not only the improvements
caused by and through his money in-
crease the local taxable wealth, but
his capital remains and becomes in
corporated forever with the wealth of
the country. Whatever may be said
in favor OF taxing capital under
ordinary circumstances, our circum-
stances being abnormal, and our
interest directly contrary th.reto,
link we ought to encourage the
Coming here of money by all honora-
BILE means possible as most conducive
to our immediate prosperity, leaving
the question of hampering capital to
after times when we have enough of
our own not to need other peoples.
In this view of the subject, would
it not be we'll to call the legislative
attention to the matter with a view to
obtain legislation abolishing usury,
mortgage taxes, and the like? These
various laws are now so imperfect
that outside of the trouble they create
they cannot be enforced, but they are
yet sufficient to scare capital, and as
they do no good in any event, let
them be wiped off the statute book as
thing of the past and only pres
ent nuisance.
Hoping an effort tending to that end
will be made,
| remain yours, etc.,
A. F. M.