New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-04-18
or. in other words. frec'art is for the advantage
of the many, not the few
r,vaTTOV or MORTG AGES

Two hills arc before the New-l ork Legs
loture which are designed to relieve owners OF
farm nronerty and to subject all mortgages
and other debts to taxation. If these meas
uros ,vould practically benefit tie farmers, or
securo 4 more equitable division of public bur
dcps. they would have many friends and few
foes But why should farmer vote to tax
himself unreasOnably, or to compel foreclosures
of mortgages on his own property? Ihere Is
mich reason TO believe that this would he sub
stantiallv the result of the bills pending and
that farmers would only suffer from them.
Nobody can compel Il farmer to give mort
gage on his property unless he chooses Tut
whom no needs money so much that he wishes
to give = mortgage the lender has the power
TO decide whether he will lend ana at what
rate If he chooses to say, as lenders often 40
say in States where mortgages are taxed that
he does not care to lend at all unless the tax
is paid by the borrower, no one can force MN
to lend His reason for taking that provision
is obvious and strong. The property-oWnerS
have the power to fix the expenditures III diner
ont localities and the rate Of taxation. while
the nonresident lenders have little or none.
Tho lender could be simply eaten out OF his
property by taxation. if the residents could get
fine propcrty assessed at little more than the
mortgages. and vote for all sorts OF expenses
to swell the taxes paid. But when the owner
has to pay he is careful to oppose unreasonable
taxation. one other important Fact Is that
lenders desire 10 know. and in many cases are
compcllcd to know, what the loan is gong to
Weld. and rarely consent to lend when change
of local administration or law may cut Oh part
of the expected revenue.
The lender has all the power. also. when If
comes to deciding whether to renew mort
gaco or 10 forccloSc. As a rule, he desires al
most anything rather than foreclosure, does
not want the property or know what to do
with it, but would be satisfied to leave the
loan standing with interest regularly pad.
Thousands upon thousands of mortgages are
thus left standing by consent in every state.
But if the holders are to be taxed out of an
indefinite part of their revenue, they are all
the more certain TO folcclOSe speedily because
there i, in other States where no such taxation
exists, an almost unlimited demand for money
on mortgage. and in most Of the states at
better rates than arc paid in Newly ork.
savings banks. which have several hundred
millions loaned on bond and mortgage argued
before tho legislative committee that they
would be- compelled to foreclosc in nearly all
case, if the proposed law should be enacted,
and for insurance companies 1t Is equally
necessary to know what revenue they have to
expect from amounts loaned The foreclosure
Of mortgages on many thousand farms in this
state would surely not tend 10 help farmers
who arc needing loans in the future. or others
nat. az. Vh
cum,tanccS may render them unable 10 meet
in full nor would II help those who have no
Indebtedness hut only property with desire
10 have il command a reasonable value.
Apparently it is the theory OF those who
support these measures that a vast amount oi
personal property. in the form Of debts due
citizens of this state by citizens Of other states.
could be- caught for taxation in Ncw-lorh. 50
fha, the burden ON all other property would be
materially lcSscncd But in times past efforts
10 rc' AT this species of property have been
far from successful nor is there anything IN
the measures proposed which promises better
succcSs The holders of stocks and railroad
and corporate bonds. OF commercial notes or
other claims. almost universally eyade tan
alton anil il j. i'm no way possible 10 find ont
what property OF that dcscrll lion men actual!
hold When the tax is paid by the borrower
the farmer or the railroad on other corporation.
hc can get consideration for that fact IN the
,of.. of interest when a loan j. made or re-
ucwcd but in no other way yet discovered has
bc IS fair 4 chance. if Obliged 10 borrow At
all. If lenders were taxed, they would merely
charge more interest.