The Coconino weekly sun., 1892-07-21
Taxing solvent Debts.

The action of the Board of Equaliza- ton in taxing solvent debts, has given rise to considerable discussion, and among a certain class has met with uu- qualified disapproval and open eXpres- sion to the effect that the Board had exceeded it's legal jurisdiction, was ex- ercising unwarranted power, and impos- ing unequal and unjust taxation.
 The class referred to is composed of the men who make a business of loan ing money. Their methods of doing business, the character of security they are wont to exact from borrowers, the rates of interest they generally impose, and the promptitude with which they either collect Cor renew with increased security, are tolerably well under stood in this community. In their precise and severe business methods they are right, and the community cannot but commend them for doing a safe business. But are they justified in all this pyrotechnic protest against what seems to the Board, and to others of the community, simply just and equitable assessment on holdings le- gally subject to taxation9 The position in which they find themselves is simply this: They are the owners of money, which they loan for the profitable in terest it commands. This money, therefore, is not in their hands, but in it's place is the evidence of solvent debts, which evidence is also to be found on the public records, These debts, as evidence by records, the Board proposes to tax, and this is what causes the fireworks.
 All the arguments we have ever heard in support of the claim of the money-leuders, resolve themselves into the proposition that . double taxation on the same property is imposed by taxing the property itself and then the evidence of indebtedness, or iucumb. rance, on the same property. For the sake of argument, let us admit this to be true. Can the money-lender then hold that his own money was not his, subject to taxation before iL was loaned? If not, can he hold that the value is any the less hls, or any the less subject 10 taxation, because he has simply changed the form of it from hard cash to a binding evidence oi hard cash, s tangible, negotiable, legal value and sign of moneys If ho eau, he must do so exclusively on his nerve. Nothing else will sustain him or in any way tend to support his claim,
 The writer is not prepared to admit that dual taxation is established by the taxing of solvent debts, unless, for. sooth. our moneyed friends can con- vince us that the evidence they hold of outstanding money are simply hcticiuos values, and we believe they would find this to be difficult, as the entire iinan. cial and commercial world recognizes and accepts them as actual values, albeit dependent for their worth upon some specified properly, just as the greenback is accepted as an actual value, though dependent for it's worth upon the faith and credit of the gov, ernmcnt, The only real distnction between a grecnback or treasury note and an evidence of indebtedness secured by mortgage is, that one is is, sued by aa individual, or association oi individuals, and the other by the gov. crnmcnt. Thus the value, if not in. trinsic, is sufficiently real Co obtain footing among the strictcst censors Of value in the known world, aud what has sufficient virtue to call forth gold from the colfors of such conservative money-lenders as grace our community has ample merit to come under the head of asscSsablc property. True, the time will come when this value may be merged into that of the property on which it's value now depends, that is, the gold which wGs paid for it will be returned (with interest,", the nQte will be paid, the mortgage cancelled, and cease to exist, and to be taxed. So, also, will the silver certificate some day be called in and redeemed, so will tbe treasury note be cancelled, but so long as they exist, they are subject to taxation in the hands of the individual who holds them. The evidence of a solvent debt stands on the same foot ing, as regards it's liability to taxation, as the paper dollar. Both are repre- sentatiycs of value, so fully endowed with the virtue of nego,iability as to invest them with actual value, and one can claim that the grcenback or the evidence of solvent debt Is exemp from taxation with equal propriety.
 The Board is proceeding correctly, and entirely within statutory limits. It is working no injustice, unless 1t Is in-