Idaho semi-weekly world. [volume] (Idaho City, Idaho Territory) 1875-1908, 1893-03-17
MORTGAGE EXEMPTION.
Reasons Why the Law sAsula ne1
Have Bees Enacted.

Inc law enacted BY the last sessio n
OF the Legislature exempting mort.
cages from taxation exempts wealth
and shoulders the burdens Of taxation
on productive industry. The men of
wealth Of least benefit to any country
are those who make a business OF
lending money ON real estate and
have but one aim in llfe--that of
drawing interest and investing their
surplus incomes in the same wsy.
how many money lenders snake two
blades Of grass grow where one grew
before?" How many invest in mining
or other enterprises where courage,
spirit and pluck are the elements tha,
'mpel men on to works that build up
and develop country, add to its
wealth and give employment to la
Dor? Such men as are moved by the
spirit Of enterprise and sustained bv
the buoyancy OF hope-the two ele-
ments that overcome obstacles and
down all fears that grow out of the
elements OF chance and risk that en-
ter more or less into nearly all pro-
ductive enterprises are the men who
are bene6t to any country, for with.
out them there would be but little
progress. The money lender simply
fattens off the creations of such men.
He produces nothing, and therefore
adds nothing to the wealth or pros
perity OF country. Why should he
be singled out to be especially fa-
vored by Legislation and exempted
from his rightful portion of the bur-
dens of taxation?' "He tolls not,
neither does he spin;" he employs no
labor, but sits idly down and draws
his ten Or twelve per cent, half of
which goes beyond the limits of fair
and just interest and into the realm
of usury. If there is one class that,
more than any other, tries to evade
land generally does) the payment of
lis taxes. it is the money-lending class.
When their mortgages are taxed,
they will, in nearly all instances, pay
taxes on but very small per cent of
their other property. They are eva
ders Of taxation "from the word CO.
but not being satisfied with cheating
the Tax Collectors they combined to
secure the enactment of law that
exempts that which they could not
very we'll "swear out of"-their mort
gages-which show for themselves,
being recorded. With their mort
cages taxed the money lenders have,
as class, paid taxes on but very
small per cent of their wealth, while
Others, as a rule, have given in all
theirs to the Assessor. No one can
particularly blame the mortgage hol-
ders for taking advantage of the
mortgage law as it now stands. Tc
take that advantage is human nature;
hut that they were instrumental to
quite an extent in securing the enact
ment of the law admits of but little
or no doubt. And they are en-.
titled to no credit for such an unjust
act. The taxes that have heretofore
come from mortgages will have to be
paid by other property and this vii
necessitate an increased rate of taxa
ton. Under theold law, which taxee
mortgages, an injustice was WORKED
: against the man whose property wa
mortgaged, as he paid on all he wa
| worth besides on what was covered
? by the mortgage. AS an illustration
\, piece of property worth $4,000 ant
$ mortgaged for $4,000, was assessed
for $4,000, and the mortgagor paid OF
t the entire assessed value. This wa
{ evidently double taxation so far a
the mortgagor was concerned, as h
maid on double what he was worth
Not so with the mortgagee; he pai'
n on the value OF the mortgage-simpl
i that and nothing more. To exemp
a the mortgagor to the extent OF th
' mortgage, and tax the mortgag
4 would be equal taxation, but instea
of doing this the double taxatio
l. mentioned is continued, while tn
9 mortgage is exempt. This is wors
: than double taxation on the ma
d whose property is mortgaged. ID
v will have to submit to this doubl
!. taxation as before, and besides, as
It result of the necessity of raising tn
II amount of taxes heretofore secure
by the taxation of mortgages, mor'
Il gagged property as well as that uner
l. numbered will be forced to pay an ir
If creased rate. So the mortgage no