The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-01-19

Members Of the legislature, while con-
silsfne the proposition 70 tax mortgages
and other evidences OF Indebtedness, would
do veil 70 read IN sble article on that sub
tettin The last number Of the Northeast Aaga-
<la<. That journal holds that the facility
With whieh Eastern capital was obtained on
liberal te-ms for repairing the damages
done b. Gre ID Seattle. Spokane Falls and
ElEensburg. was due 70 the sensible rule Of
saxAfion which prevailed In this state.
In the two Dakotas and in Minnesota
norteages are taxed. while IN Washington
che Other rule has prevailed. and Il Is just
shis polut OF difference that has made II
difficult ID the former states and easy IN
Wsshlneton 70 obtain money. both at hoins
and abroad, for masking valuable improve
snenta.
zsFals Northeastern expresses surprise that
fzsnsrs generally favor the policy Of tax
ing mortgages. This. Of course, refers 10
farmers who are borrowers or who appre-
hend that they may need 10 borrow. But
iIttls selection win show that borrowers
ara more vitality interested than are lend
~ Ii stable and sound system OF taxa
lion. Considering the rate Of premium at
which Enmatured bonds are selling, II Is
presunsbis that TIE United States govern
msns wvuld have no difficulty In borrow.
lHs hundreds Of millions At FL per cent,
x1rtaz6ay not more than per cent The
! xe1sou Tor this low rats 10 that the security
a peSfgo s6d fhe> bends are ncs taxable.
- proportion - sssher Of these condi-
1lons ere departed from. interest rises, un.
III TIE Dakota farmer. uncertain Of erep,
but with mortgage tar among the Ger.
tsintIes. II glad 10 obtain . needed loan at
10 per cent
Ths lender II always master Of the situa.
tim. u his mortgage Ia b be taxed, or II in
buy way his security r. to be impaired, be
makes bis terms accordingly. always taking
care 10 give himself the benefit Of any ele-
meat OF doubt that may attach 10 the
transaction. But generally the prudon.
csritaiist viii steer clear OF localities whore
such elements Of doubt or insecurity are
features Of the fiscal system, and win pre-
ter 10 realize lower net interest elsewh here.
No matter what the law may be, the tax
on q mortgage VII always come out of the
mosteagor, and generally with = consider
able addition Tor The uncertainty about the
probable amount Of the tar. II borrower
b. An honorable man the execution OF
mortgage does not lessen his interest in the
nortgagsd property. Upon such man
the debt e just IS binding against him and
Ill Of his property without mortgage aa
with Il. He owns the same property and
owes no more than he would owe II there
were no mortgage.
Any borrower must admit that Il woald
be greatly to bis advantage II upon a loan
be could have twenty years In which 10
pay given amount OF interest. instead Of
being compelled 10 pay the same amount
in ak years. That IL Just the difference be.
tween the terms upon which the govern
saent and Dakota farmer can obtaln loans,
the one pays % per cent In twenty years,
the ether pays 90 per cent In SIX years. The
nearer the conditions attaching 10 loans
upon private property are madeto conform
With those attaching 30 the purchase Of gov.
ernment bonds. the narrower will become
this margin between public and private
credit, for government loans are net taken
% sentimental grounds as general thing.
s Its perfectly clear that the legislature cf
Washington should do nothing 10 impkir
slse eontidsnce with which outside capital
has been Inspired by our heretofore soaaa
syssen q TAXATION. Let well enough Alens.