Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1890-12-03
AN lMpoRTAnr QUESTION.

Taxes Upon Such Money Also9- Plan
That Would Prevent Usury and Force
Capital to Fay Taxes.
From the Rural NewYorker clip the
following:
Is there ary economic question in which
farmers are moro deeply and directly inter
ested than in an equalization OF tex ition1
It Is hagrantly notorious that real estate
pays an ex xorbitant prop nrtion of the taxes
In every State In the Union. wherever,
therefore farmers may obtain nreponder-
ance or a controlling vote In any State
Legislature prompt equalization of taxation
should be one OF the first acts of Justice on
which they should Insist
The problem of tax Ition of mortgages
should also early engage their attention.
The solution of this will not be an easy
task. however. At present in nearly all the
States the mcrtgagor has to pay taxes on
the mortgage as well as on the land, as
though no mortgage burdened It Thus the
owner OF an estate worth 1900, and mort
gagged for half hat amount. is taxed for
so 900, while tbs record of the mortgage
and The evidence of the estate rem Ter any
evasion Of the injustice Impossible Mary
land and Massachusetts have air~aiy iegis-
lated on the vcx d subject, aud Maine is at
present struggling with IL.
To tax or not to tax is tie question: and
II the former on whom should the tax be
imposed or how divided? That the mort
gsgor should pay double taxation is o vi.
ously unjust. but IL the ak Is i'm nosed on the
lender will not he shift ths burden from his
own shoulders to those OF the debtor by re-
quiring higher interest or making ezra
charges, or in both ways? A ter a great
deal of study Maryland decided not to tax
mortgages at all, while Massachusetts,
thought the fairest way out of the difficulty
would be to tax the mortgage as joint owner
with the mortgagor "f the land morta aged
to the extent OF his interest The mortgage
Is taxed to the former as real estate to the
amount due him upon II, and the mortgagor
is to that extent relieved from the tax, as he
is taxed only for so much OF the value of
the mortgaged props rty as is In excess of
the debt, thus making In effect but one tax
upon the property, the note being free from
taxation.
The special tax commissioners of Maine.
after diligent study of past le islation ON
the matter In other States. have decided to
adopt the Massachusetts, plan. or course
the lenders facilities for shifting the tax n
the debtors shoulders will still remain: hut
Is there any practical means of avoiding
this objection? In view Of the enormous
amount of farm mortgages oil over the coun-
try, and Of the gross injustice of the taxa
tion of mortgages now in force In nearly all
the States in the Union, does not this prob.
lem deserve Il Q earnest attention OF farm.
ers everywhere2
This question of the taxation of mort
cages is indeed, as the Rural New
Yorker says, not such an easy task to
solve, irsolving as it does, not only the
question Of taxation, but also the rate
of interest upon money. 1t will be
seen at a glance that in Maine and
Massachusetts, all the money lenders
have to do is to raise their rate of in
terest, so that it will equal the rate
they have been getting plus the taxes.
and presto, the taxes are again shi fled
on to the mortgage-ridden farmers.
The constant effort of the reformer of
to-day must be to inaugurate system
of finance, under which money will be
furnished the individual, by the people,
at the cost of issue, thus annihilating
interest and destroying the class known
as money lenders Until this is done,
however the Legislatures of the vari-
GUS States have the ght and have ex-
ercised the power to regulate the rate
of interest upon money.
Political economists of all schools are
agreed in the definition of the factors
which absorb the earnings of the pro-
ductive labor as rent, usury and profit
The Alliance and kindred organizations
seem to have agreed upon the terms
land, money and transportation, but I
believe a more comprehensive classifi.
cation would be rent, usury and ds-
tribution.
Interest per Sc, or OF itself, is a crime
against humanity. It invests an inani-
nate tool of commerce, with the rightA
powers and attributes of productive lar
Dor, and enables, the holders or possess
sors Of the peoples money to live with
| out labor upon the proceeds Of other
mems toll Without however, enter
ing upon an extended argument az to
| the sin ister operation of the law of in-
forests, will simply say that the only
| manner in which this incubus upon
productive energy can be neutralized 10
for the people or Government to stand
ready at all times to loan the peoples
medium of exchange or money to the
individual upon approved security al
the actual cost Of the service. To thia
end we must bend our energies and
earnest endeavor. and II we stand
united and firm this henehcent reform
will surely be among the fruits of nine-
teenth century progressive civilization.
Let me state the law Of interest: If
any individual or community pay q
| greater per cent of interest than
the average pof cent. of in
crease OF material wealth, it is
only q question OF time as to when the
individual to whom the interest is paid
shall own the entire material wealth
originally owned by the individual or
community paying such interest II
on the other hand the rate Of interest
paid Is less than the rate of increase Of
wealth. the party paying the interest
Will get richer as we'll as will the party
to whom the interest is paid,
| 1t will therefore be seen that until
the people by assuming their preroga-
tive of issuing and regulating the value
| OF money, destroy the power of money
to oppress," the indiv. dual citizen is
vitality interested in the matter of inter-
est rates, Now believe have con-
ceived of line OF legislative action
which would not only regulate interest
and render laws against usury unneces-
sary, but would also settle the vexed
question of unequal taxation. by forcing
capital either to accept fair and rea.
sonable rate of interest or else pay
taxes upon money loaned out upon real
estate security
Ny plan is plain. simple and easily
understood and enforced. (D Estab.
lish or decide what would be fair and
reasonable net rate of interest Fol
arguments sake we will say two pei
cent .(2l Assess all lands at their 40
tual cash or market value for purposes
of taxation (3) In the case of mort
gagged lands issue two tax receipts after
this fashion--one in the name Of the
party to whom the mortgage is giver
for such an amount of annual interest
on said mortgage as is In excess of two
per cent, and make such tax receipt Z
legal tender in payment OF interest
upon such mortgage. Issue. the Other
tax receipt to the owner Of the equity
in the land for such amount as the re-,
ceipt given to the holder Of the mort.
gage lacks Of being equal 70 the total