The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-02-14
THE ROOT OF rHE EVIL.
The Communication OF Merchant
Does Not Reach IL.

Does Not Reach IL.
Editor Morning News: Merchant" in
his communication Feb. 13. does not
strike al the root Of the evil that has re-
suited in an S per cent. rate IN this city.
There IS no 10 Ter cent. deposit 10 the
state required Of banks There Is such
deposit required by the United States from
national banks, and there Is some hope
yet that the Democratic party may re-
deem Is pledge by which IL obtained votes
and repeal this law.
The trouble with the banks and with
every other business in Savannah is that
we axe be .ng taxed to death. The screws
are tghtened each year. and now when
business Of all kinds is less remunera-
tive. this Is being felt more
keenly; yet there IS no let
up. but the study is how little more can
be squeezed out OF this more might be
said probably another time.
Until a few years ago there was. in ad-
diton TO a specific tax of 500. q nominal
tax on the capital Of the bank, say one
quarter OF one-half Of l per cent. The
banks were not declaring large dividends.
not making unduly large profits In lend
ing money. They charged per cent. for
loans, and having Accumulated a surplus
by using that and portion of their de-
pOsits 10 lend out, managed 10 pay from
to Z per cent. dividends. In the majority
Of cases these surplus funds were the re
suit Of jud4 cious Investments in securities
when low. or accumulated dividends not
paid to stockholders when the institutions
were first started. From the nature of the
business banks must have a large clerical
force to do correctly in a limited time
every days business, Their expenses are
therefore heavy.
A few years ago one Of the present board
Of aldermen made the point that all species
Of property must be taxed at same rate,
This resulted in banking capital being
taxed like real estate-1la per cent. The
banks raised their rates, and every Dor
rover pays the tax, not the banks. This
has driven capital out of the city II has
paralyzed enterprise and proved an en-
barge on trade. Depositors keep their
surplus in New York. where It does moi
have to pay this tax. Parties owning
large amounts of personal property move
to other places, or send their property
where il cannot be reached.
The legality of this policy is not argued
against. II is a requirement of the state
law, but how many cities of the state re-
gard it? We strain a gnat and swal-
low a camel" We violate Gods laws
and mans moral laws, but go off into a
violent At of moral Mysteries II a PROPOSE
ton is suggested TO evade the law to pro-
tect new industry or TO save the business
OF the CITY 4 ne zeal Oh Nntle mousse mas
eaten me up" may verify be said of our
municipal boards, which to paraphase
means that the goose which laid the gol-
den eggs has been sqeezed to death Has
real estate been benefited thereby? There
has been no decrease in rate or assessed
value. The extra amounts raised by the
city have melted like last years ice. and
the burden rests more heavily than ever
on real estate. The assessors are sent out
to place property at its market value, with
an understanding of the city's need How
well they do this. from the city's stand
point the number of appeals from their
report is shown.
The writer sees no remedy for these Ills.
The finance committee of any administra-
ton is responsible for its financial policy.
Therefore the present administration can
not be expected to go counter to the policy
Of it's executive Indeed, the tax payers,
who did not elect them, have much to fear
from the inexperience of the present
board, many of whom have, as yet, made
no record in their personal matters. The
suggestion is made, however, that some
relief should be given to merchants and
banks by The abolition of the specific tax
SeneX,