The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1890-02-22
THE M0RTGAGE-TAx Law.


As we expected, the assessors, who
met in convention in Portland this
week, have made themselves heard.
1t is reasonable to suppose that these
men who have had practical expert
ence in the matter could point out the
evils of the present system of assess
ment and suggest some remedy. OF
course they could not change the ex-
listing law; but our legislators would
act wisely if they followed the sug
gestions made.
One important action was the pass
age of resolution favoring the repeal
of the present mortgage tax law. The
object of the passage of this law was
for the state to derive some revenue
from the immense amount of foreign
capital invested, and undoubt-
edly the legislators were honest
in believing that such measure would
accomplish this result. Practical ex-
perience has demonstrated that the
borrower is forced to pay the amount
of the tax, and not the lender. Money
is governed by the same law of supply
and demand that wheat or other nee
essary commodities. If he who is de-
slrous of loan approaches a money
lender he is forced to pay the
ruling rate of interest for the use
of the money. In case mort
gage is given, the per cent. of taxes is
charged to the prevailing rate of inter-
est, and the poor man has to bear The
increased burden. Legislation cannot
change this, no more than it can the
price of produce Of the farm. In case
laws are too stringent, the capitalist
will seek another market, the same as
the wheat seller. There are times,
perhaps, in every persons experience,
when money is more valuable than at
others; and in such emergencies a
much higher rate of interest is readily |
paid. In this stage of our develop
ment foreign capital is very welcome
in this state, and it will be advan-
tageous if it can be procured. The
reason for the act never existed, even i
if it had not reacted on the portion of
the community which it was designed
to benefit.
Aside from the results named, the
manner of the collection of tax on
mortgages is not in the least salts
factory. The law provides that such
delinquent taxes shall be "lien on
the mortgage and debt, and this is im-
possible of enforcement. If this prop
erty is sold for delinquent taxes, the
only deed the sheriff could give would
be simply certificate of sale, and this
would have no binding force on the
mortsageor. The mortgage record
could not he changed, and he who
owes the debt could settle it without |
paying any attention to the "lien" Gre
ated.
A reformation is needed in this
regard, and it would be for the best |
interests of our commonwealth If orr
next legislature would abolish this law
on our statute books, together with |
that against usury. Both can be
placed in the same category of illcon-
ceived legislation, and the quicker the
state is freed from such obstacles to ITS |
growth the better. The consumer
pays for the price of the commodity,
however costly its production or manu-
facture. and the money-user will pay
all taxes on mortgages and bear any
other burdens which may hamper its
Tree interchange in the markets. There
IS not community in Oregon which
loes not desire capital, and money
sellers should have the same immunity
n. our markets as cattle or sheep
lealers.