Telegram-herald. ([Grand Rapids, Mich.) 18??-1892, 1891-01-29
MORTGAGE TAXATION.

4u0 QuCStlOu VI tuc taAdtlOu
Of mortgages and the exemption
of land from taxation to the ex-
tent of encumbrances thereon seemed
. very simple one to local statesmen on
the stump last fall. They would 20
Down to Lansing and settle the whole
matter of hand, If the people would
only elect them. For some inscrut-
able reason the people did elect them
and . good many like them-and
there are moro stump Statesmen IN
the Legislature than ever before.
What they will do, is IS uncertain ~
tho outcome Of the deliberations of a
petit jury. There are already indica-
cations Of wide divergence Of opinions
on tho question of mortgage taxation.
Some want mortgages utterly exempt
from taxation, ~ the tax, they claim,
increases the cost Of money to borrow
err. This argument is neatly stated in
. recent editorial of the Leader. It
said:
1.-THE Michigan Legislature had far
better repeal the mortgage tax at once
and have done with it: for nothing is
more certain than that If by any miracle
1t should hit upon . method whereby
this tax could BE- made and should be
rigidly enforced, the increased bur-
dens thrown upon borrowers would
cause such . storm rs would insure re-
peal At the next session. The people of
Michigan, ~ . rule, are borrowers. not
lenders of money, and plenty OF money
at low rate Of interest 10 q thing
greatly TO be desired. Why, then,
force up the rate Of interes by taxing
mortgages"
And others cannot see why those who
lend money for living should Do ex.
empt from taxation any moro than
those who sell groceries. It is just As
desirable that We should have groceries
cheap a. money, and if redemption from
taxation makes money cheap, why not
groceries? IL . man converts all his
means into ready money and invests it
in the loaning business, enjoying all
the benefits of the laws and courts to
protect him, why shQn1d he not pay .
tax to help run the government as we'll
~ the man who invests his money in q
stock of groceries7 these be parlous
questions and demand something
more than stump statesmen for their
due adjustment.
The question OF exempting land from
taxation. to the amount of the encum-
brancs thereon, presents some conflict
ing aspects. according ~ the
land 10 viewed from the stand point
Of the owner or the public. If man
owns . 5000 farm encountered with q
$1,000 mortgage, he really owns bu,
5000 worth Of property and yet has the
benefit Of $4,000 ~ . source of revenue.
Looking at the question from his stand
point, it is hard for him to be taxed on
twice rs much property IS he owns.
Yet the township 10 entitled 70 the bene-
fit of the $1,000 worth Of taxable real
estate lying within its boundaries, and
the other citizens of the township do
not care to have it, valuation cut down
one-half, to their detriment, simply be.
cause SOME money loaner IN New York
owns . 5000 interest in it, which can
not be reached for purposes Of tara
tion- How are these two conflicting
interests 20 b reconciled7 Let the
stump statesmen 1T Lansing, Who have
taken the problem OF mortgage tara
ton. or exemption. upon themselves,
look 10 IL that their solution does no,
make more evils than il cures. The
problem d knotty and their legal ap.
premiership very brief.