The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1888-11-21

lation is based, and the practical work
ing of the false theories they embody
when actually enacted into law, are
forcibly set forth by Henry VIM, Esq,
in his statement of the facts of the ex-
perience of Massachusetts, borrowers
under the much-quoted law of that
state Mr.. Winn says:
The substance of this question is simply
stated. Under the old law Rogers owned
farm worth $4,000 and Robinson was worth
nothing. Rogers paid a tax, $50, at one
and one half per cent on $4,000. Robinson
paid no tax Next year Rogers sold his
! farm to Robinson for u mortgage note.
Then Rogers paid a tax, $3.50, on the note
and Robinson another $50 on the farm.
Taxation was on $4,000 instead Of $40, 900.
| Now il of the two taxes one was wrong,
who paid the wrong tax? Was IL Rogers?
Did he not have as much property as the
year before? Was he fool enough to impov-
erish himself by his trade with Robinson?
! And il not, did he not owe the public the
same tax? If any man suffered 1t was Rob
! inson, who was not made rich by his bar
gain but was compelled to pay full tax on
the farm of which the chief profits went in
the shape of interest to Rogers. And now
| Rogers with an eye to thrift went to the
general court and sung this distress OF Rob-
inson so plaintively that the legislature sub
! SlulIeU not Une SUFFERER Dub Une singer.
! They exempted, in fact, The lCrOng man. They
could not withstand that great argument of
Rogers, who said, "Surely two men are
taxed when only one ought to be; | am one
OF the two, ergo let me Off" Him whom it
dawned upon that perhaps Rogers was the
very one who ought to be taxed he silenced
by proving that there can be no double tax
alton when only one Of the two is taxed
Therefore the law, as he claimed, cured
double taxation.
There are many reasons why Robinson's
tax was not so much of a hardship as rep
resented. The interest rate from various
causes is naturally enough less than the in
come of tangible property to permit him
profit from the trade despite his tax Else
| Robinson would not have bought The adj
vantages which freedom from labor, care,
risk and depreciation bring to the holder of
credit property, as well as to the competi-
ton of the foreign lender, induce him to
lend much below the income of the farm or
other tangible property sold to produce the
credit. Government is put to quite as
much expense to furnish courts to construe
| contracts and enforce payments as to pro-
teot land and that expense is incurred to
enable Robinson to buy land on credit. At
least he cannot ask the state to forego its
right to tax its own soil to accommodate him.
| But we need not discuss the borrowers
tax. His tax is only the pretence for sub
sidizing the rich creditor. And these
schemes leave the borrower, as in Massa-
If it be asked why Massachusetts, does
not retrace her steps, the answer is that when
law like our former statute has been re-
pealed after thirty years struggle there is a
strong tendency to let the subject rest.
| The press almost universally sustainS the
abuse, though of course some are fair
enough to print communications from both
sides. The people are in ignorance of the
facts. Unjust taxation is generally indi-
rect or unrecognized. The change in the
1..fN TO
year was not enough to attract general at
tenton. In Boston the rate rose to seven
teen dollars per thousand, exceeding its
former maximum only by reason of this
scheme. 1t seemed likely that inquiry would
arise. But the legislature took away the
right of self-governnent in cities by depriv-
ing the people of the power to raise money
for municipal purposes beyond low limit.
Boston therefore is enabled to subsidize the
lenders without high rate by scrimping
the city expenses, the pavements, improve
ments and schools. In schools, for example,
the amount expended per scholar was $32. "A
in 1851 against S2S.62 in 1867.
The tenacity of any tax abuse in which
powerful class reap harvest from levy
not generally felt, is notorious. Wendell
Phillips used to say there was nothing so
potent as a million dollars-eXcept two
millions. 1t takes almost revolution to
reform wrong in the tariff. Besides the
money lenders have shrewdly combined to
create u lODDy 10 sustain lut pTtSeHJ law
Soon after il passed, under the lead of the
great savings banks, they caused the mort
gage blanks to be so changed that the
printed form now contains covenant that
the debtor shall pay the lenders tax on the
mortgage note, as well as the land, If the
legislature shall ever again impose it. OF
course this could not be done under the old
law for reasons already stated, unless the
lender should compensate the borrower for
doing it by charging less than the market
f,- Il,,f han tha hNr
thinks that he assumes no tax by the clause
and probably never will, he does not insist
upon expungng it. The result is that
while existing contracts continue, If the old
law should be restored the borrower would
really be held to pay two taxes.
The moment a serious move is made in
the general court to restore the old system,
the registries are searched for the small
mortgages, the names Of the borrowers, es-
pecially women, are collated and circulars
fall upon them like snowakes, of which
the following extract from one have shows
the tenor:
: Dear Madam = In your mortgage re-
corded in the Suffolk Registry of Deeds, a
clause to the following effect appears;
And the said mortgagor agrees to pay all
taxes and assessments on the mortgaged
property and also upon the debt and note
: secured Mereby -" 1t means this
If the present law is repealed and taxes are
again put upon mortgage notes you will be
in addition to all taxes and interest that you
now paw You are therefore asked
for the sake of your present and future in
terests, to use what influence you can with
individual members of the legislature, es-
pecially with those that represent your own
7 district, to prevent a return to double tax
alton, etc"
l In 1884, the legislative committee having
reported in favor of returning to the old law
members found widows and orphans wait
ing on the state house steps to implore them
2 to save them from their improvidence by
= continuing the law. 1t is easy to procure
l reports from legislative committees in favor
{ CT repeating this statute, as it is easy tt
convince any set of honest men who viii
patiently examine the question and think
4 Among the assessors who make taxation d
, study the friends of this law are as rart
I as white blackbirds. And independent
Y thinkers like Professor Perry and Presiden
Seelye condemn it,.
n But in the general body of Legislators
q many have a direct interest to maintain the
law, since we elect chiefly from the well
: TODD lending classes, and this makes some
V votes. The chief difficulty is, however
that the mass of legislators are under thu