Evening capital journal. (Salem, Or.) 1888-1893, 1891-01-28

through your valuable paper, 10
give my views on subject, the un-
drrstanding of which l deem Of the /
utmost importance in furthering
the prosperity of Oregon. ] refer to
the taxation of the evidences OF
debt. The law as at present on the
statute books distinctly states that
money, notes and mortgages shall
be taxed. To show how unjustly |
the law works / wish to cite you an
instance.
1 lived in Wasco county and had |
two thousand dollars. | loaned 1t
to a man in Marion county taking
bis note and mortgage. The asses !
sor called on me To- give list % my
money, notes, ETC., and ] listed, a.
in duty bound, the two thousand
dollar note. The assessor of Marion
county assessed the mortgage to me
in Marion county, and | paid, be-
cause / strictly followed the law, on
four thousand dollars worth of prop
erty. [ had occasion to examine
the tax return of the gentleman to
whom l loaned the two thousand
dollars and l found this condition Of
affairs: The property upon which l
held two thousand dollar mort
gage, well worth five thousand,
dollars assessed at two thousand five
hundred dollars, and l found no
money returned, NOW what became
of that two thousand dollars |
loaned p and a deduction Of two
thousand dollars; consequently on
account of the five thousand dollars
nearly all escaping taxation the rate
on my mortgage was made that
much higher Now, then, l was
honest, too honest in fact, and so l
suffered, and the rogue escaped. In
order for me to prosper [ must also
be rogue-as / do not wish to be a
rogue my only remedy is to loan my
money where it receives just and
honest. treatment through the laws,
which / cannot get in Oregon.
l now wish to call your readers
attention to the equity OF taxing
only property, and making ne de-
ductions of any kind for debt. To
make this matter plain, to the think
ing reader l offer an Illustration
which must be carefully considered.
else my train of thought cannot be
followed. l have three thousand
dollars in cash, gold or silver coin,
which l consider property, and as
such taxable. That three thousand
dollars is worth eight cents on every
dollar for use. am using it, therefore
it is worth eight cents to mo, and
the assessor should assess it at three
thousand dollars; no more, no less.
| now make voluntary exchange
of that three thousand dollars for a
! farm, believing that can earn eight
/ per cent off the farm. An argu-
ment introduced here that the farm
will not earn eight per cent is no
argument because | entered into the
exchange voluntarily, therefore !
am supposed to know my business
as well as those who make such
statements. have now exchanged
one class of property for another,
and am no richer, 10 poorer; for my
farm will earn me return of eight
per cent as well as the money. l
now borrow one thousand dollars, |
then haye four thousand dollars
worth of property, and should pay
! taxes on the four thousand dollars of
value. Ia borrowing this money |
simply overdrew my account TINY
bank one thousand dollars and con.
sequeutly have given no note, but
the bank charges me eight per cent
! interest. Now then what injustice
is there in my paying taxes on that
four thousand dollars worth of
valHe? Now then | give the bank
IA note, but have changed our rela-
tive positions any as possessors Of
property? | so stl.l further and
give the bank a mortgage on my
farm but have | changed the posi-
tion of the possession of the prop
erty ? A just law would make me
pay on the four thousand dollars
worth of property ! own, and it
would be a practical law since the
state assesses only propertyand Town
all the property in the transaction.
Thepresent law, however, says since
/ borrowed the money of the bank, |
the bank shall render IA return of
the amount mo note or mortgage
taken) aud pay taxes on il. What
is the consequence? | pay to the
bank a higher rate 10 cover that
amount and am no gamer. Since
deduct the one thousand from the
four thousand the state is no gamer
in taxes, hut allows the property
which | hold to escape and holds the
bank for the tax because il holds me. .
since only property should be taxed, F.
the state departs from a fixed pnuci- F.
pie of taxing the property, aud /
taxes the individual, and should the .
individual walk over the state line
no tax can be collected. The true
principle in this question of taxa
ton Is 10 tax property only, aud real
estate aud personal property are the
An NNH Q ~.