Los Angeles daily herald., 1889-01-26

compensate the mortgage for the trouble
incident to the payment of taxes upon
his mortgage.
capital from being loaned upon mort
cages in this State, because of the in
convenience and trouble attending the
payment of taxes at distance, and
especially because of want of
knowledge of our system of taxation,
times of payment, penalties, administra-
ton of municipal and country govern
ments and limitations upon rates OF tax
alton.
Third. For the same and similar
reas it tends to prevent capitalists in
the money centers of our own State from
lending upon mortgage in other portions
of the State, and especially in the newer,
more remote and more needy portions.
Fourth. 1t diminishes by the amount
of money loaned upon mortgage the tax
able property OF the State, ipasmuch as
the money so loaned is subject only to
the mortgage tax, while the amount of
the mortgage is deducted from the as
sessed value Of the real estate, thus
necessarily increasing the rate of taxa
ton and the rate of interest paid by the
borrower.
Fifth. This provision of our present
Constitution operates unequally as be-
tween different localities in the State !;
inasmuch as the taxable property in the
city or county of the lender is reduced
by the amount Of the mortgage, while
the taxable property of different county
or city where the mortgaged property is
situated is not increased, yet the reduc-
ton of taxable property in one locality
increases the rate of taxation for State
purposes in every locality.
Sixth. We believe that all re-
strictions upon the lending and
use of money, which are not
shown to be actually beneficial,
are unwise and should be removed; and
we confidently assert that no beneficial
results can be shown to have followed
the adoption of this provision of our Con-
stitution, while experience proves that 1t
is detrimental to the interests and pro-
gress of our State, and burdensome to
those who are obliged to borrow money
upon mortgages.
To the Legislature of the State of CALI
fornia: The Los Angeles Chamber of
Commerce respectfully petitions your
honorable body to amend lhe statutes OF
this State in regard to the payment OF
taxes 30 as to permit the taxpayer, at his
option, to pay one-half Of his taxes at the
time taxes are now required by law to be
paid, and requiring the remainder to be
paid on or before June 25th next ensuing.
We urge the following reasons for the
proposed change:
First. Our present system withdraws
from the people at one time and in one
payment all the taxes required for the
support of the State and county govern
ment for whole year in advance, thus
Withdrawing from circulation and from
use by the people, unnecessarily, large
amounts of money. causing serious de-
pressions and disturbances in business.
Second. Under the proposed system
the taxes paid in December would, to a
large extent, get into circulation in the
ordinary course of business before the
second installment would become pay
able, thus enabling the taxpayer to use
the same money for the payment of the
remaining portion of his taxes.
Third. The system of semi-annual
taxation has been tried in other States,
notably in the State of Ohio, for many
years, and has proved to be highly
beneficial and satisfactory in every
respect.
Fourth. If it be said that under the
present custom of depositing the public
moneys in banks, that the money SO paid
finds it's way back into circulation, we
reply, that this custom is in violation of
law, and even if it were not, that the
taxpayer, if required to borrow from tho
bank, is compelled to pay interest upon
his own money for the benefit of the
hopk