The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-03-10
THE MERCHANTS TAX.
An open Letter TO tho Farmer. Member
OF tho Legislature.

OF the legislature.
To the Honorable Farmers. Gmngcr, and Wheel
Member OF the Tennessee Legislature now In
session.
Genllemen-I am very suro that each
and every one Of you is sincere In his dc.
sire 10 legslate Tor the b st interests Of our
noble and proud old state, and that IN the
legacy that each OF you will leave your
children will be the proud reflection that
you tried TO serve your country faithfully
and wisely. Promising thus, | desire
briefly TO direct your attention to what
now most concerns every citizen of Ten
nessee, namely, the subject OF taxation.
The payment Of taxes Is not always a
pleasing duty, though IL is always IN ab,o-
lutely necessary one We. rs civilized
men, cannot live without organized gov.
eminent, and government cannot exist
without monetary support As It must he
paid whether We like II or II not, the chief
duty OF legislators Is 20 devise the easiest
ways aud means to pay IT, H. therefore,
you agree with my promises. please
carefully consider, aud, according
10 your honest convictions, vote
on my suggestions NJ hereinafter
expressed. II would bc very unjust, II
they had the power, ior other calling. in
your honorable body To pass laws sim
ply because they had such power, com-
pelling you 10 pay an unequal sharu Of
the States tax burdens You would be
justified in loudly proclaiming your
wrongs 20 the world. So. also would Il bo
with any other class or calling under sim.
liar circumstances.
IL there any class Of our fellow citizens
In Tennessee now uncaually taxcd2 | con.
tend that there Is, aud that such Unequal
ity tends TO rctard the States prosperity,
aud thereby 10 reduce the value 81 Your
lands, which, after all, Is the basis, the
bottom aud beginning ot our wealth. Why
do | say sOY Let me first illustrate tho
practical workings Of our present tax laws,
ls applicable 10 the merchants OF Tonnes
see, that YOU may see Tor yourselves. Mr.
Jones owns a slOrchouso worth In cash
$500. Under our present stringent assess.
mcnt law Il Is entered for taxes nj, say,
$1,000 ono per cent ON this would be
SO. Mr.. Jones, therefore, pays on his real
estale $40 per annum.
Now let us look at the other side. Mr.
Smith Is Is merchant To, too. Is worth,
like NJ. Jones sj.UJ0, 1ut he puts his
capital into a stock oi goods wares and
merchandise and rents and occupies the
stoWhouse OF Mr.. Jones. When he be.
gins business hc buys ancwsiock VI goods,
and no. only invests his cash capital Of
5000, butb buys 5000 additional on credit
Thus YOU SOC ho has $4,000 worth Of
property kept Ia Mr.. Jpnus's store, ono
half having been bought on credit Under
our present olioug system Of taxation h0
Is required 10 pay taxes not only on his
actual capital OF 5000, bat also upon tho
5000 additional which ho has bought
upon credit. Now let rs SEQ precisely tho
relative difference in amount Of taxes paid
by Mr.. Jones on his stofchouse and Mr..
Smith on his stock ol goods, wares aud
merchandise, viz:
per cent on Joucs's store, worth 5000, bot
as.e..ed At s,e2i .-,; -, Z, IA. ~ /" %
but assessed A. $1,000 .. ......... 100 %
You will thus SEQ that under this show
ing (which Is in fact an underestimate,
but given merely 10 illustrate the garing
injustico), Smith, the merchant ~ com
PEELED 10 pay two aud half times a.
much ad valorcm tax a. Jones, the real ca
tate owner. But this Is not the worst feat
uro Of our tax system. Tho above calcu-
lation Il made merely on the basis Of the
nd valorcm taxes Mr. Jones can own his
5000 store without paying other than the
nd yalorem tax, while Mr. Smith u re-
quired. for the luxury Of putting his -. 900
capital into stock OF merchandise. an adj
dilional tax Of same amount Tor tho priv
ilege" OF such Investment thus again Pill.
ing tar upon tax for the purpose OF con-
Quoting business absolutely necessary 10
the well being and prosperity OF our state;
Now add this privilege" tax 70 the lad