The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1895-04-06
TAXATION OF MORTGAGES.
State Senator Bennett Enlightens
the Baltimore News.

EDS. OF THE ADvoCATE-Tn an editorial on wed
nesday. ON the taxation of mortgages, the Baltimore
Ne,cs has this to say
Aside from the abstract principles involved, the
question arises, who would be benefited and W no
harmed by the operations of such law as was IN
troduced in the last Legislature by Senator Bennett
of Carroll county? There is no law under the sun
that could he framed to compel one man 10 ehd
another money unless he protited thereby IN shch
manner as satisfied his ideas of commerce. II ne
cannot make profit out of loanlng money on mort
cages there are other martS of trade open TO the
capitalist and his money. \ per cent investment
with good collateral satisfies most of the men VINO
loan money on real property in Maryland, thousn
in some cases the rate of interest rises To- per cent
If the investor is required to take OIL third OF ths
as a tax to the State, he will surely do one or the
other of two things-put his money in some other
investment or charge the mortgagor commensn-
mtely higher rate of interest. The men VINO talk
the most about the taxation of mortgages nave no
answer for this argument.
If the Mons had stated the provisions OF the
amendment to the Hayes assessment bill that !
offered and which was adopted by the senate no
answer would be required. If its premises were
correct. its conclusions would be irresistible But
the NelrSdoes not seem to comprehend the provision
of my mortgage tax amendment to the Hayes bill.
The capitalist and money lender was not required
by it TO take of a third tax to the state \
law requiring that would be very unjust and would
result i'm the withdrawal of capital from mortgage
investments
Ny amendment provided for a uniform tax Of
eight per cent on the income from mortgage invest
ments and no matter where the mortgage was
owned and no matter what the local tax rate was,
the tax would be the same. The income on a mort
gage bearing six per cent. interest would be 80
Instead of the investor being required TO take OF "a
third Of this as tax to the state the Macs says
the tax would be hut s4sO-lcss than one-half Of
one per cent. On five per cent. mortgage the tax
would be but SAO0
The NeleS says that five per cent satihes most Of
the men who loan money. This IS true now. but
when the mortgages that now cover the farms Of
Maryland were executed everybody wanted six per
cent. think am within bounds when say that
not one farm mortgage in twenty bears less than
six per cent. and under my mortgage tax auei'd-
ment TO the Hayes bill most mortgages would still
have over five and a half per cent. interest AFTER
paying the tax.
In the first part of the extract above. taken from
the y,7rs that laper asks who would b. benefited
and who would be harmed by the imposition ef a
mortgage tax. vogy frankly answer no one would
De harmed, and there would result mutual henehl
To the mortgage and mortgagor. With low prices
for wheat the chief reliance Of the farmers uf a
greater part OF the state some farmers have default
Cd on their interest and others have experienced
difficulty in meeting their obligations. The taxa
tion Of mortgages. IN the manner PROPOSED would
opemte to reduce taxation ami this reelection
would assist the farmer in meeting his interest on
his mortgage. The mortgAgec, then. would have
over FIVE and half per cent Interest. net from his
investment. which is more than any arst-class 80
curity bears. and the reduction % taxation wonld
assist the mortgagor IN meeting his obligation and
insuriug the money lender his interest Here Is the
mutual teuedi thar would ari~s from the imposition
Of q mortgage tax a. proposed
Further on in its srticie, The N71 speaks of the
old ihreadhare argument about douhle taxation
Like all other organs Of capital and mortgage lax
opponents the Ne,rs sympathy al gees ont g. the
money lender The fact thar ulortgagor now rays
taxes on v hat be docs not own does not siost as
cardiac or excite It's iachryuiai organs
The Democratic party win next winter PAS an
assessment law There is NO deuht q li. and the
Kind of lsw aiil depend upon the action ~ 'he
counties in sending o. the Legislature men 81 hn viii
demand iayr in accouiance with ihe constitutional
provision. that 1acn shoaid be taxed according t.
their worth The demand for new assessment Is
TO egualize existing Inequalities ami 10 ada e. the
taxable hasis the milliaEs IT property now gu1aNc.i
law that dnes not afoui nsliefhy increasins ibe
basis would D. unsatisfactory There b D. u-s to
20 to the expense 90 : ncu assessment only 20 sad
ont that the sum Of the assessments Is oaiy ahoat
what 6, nov s. The dcul@Bd {, tlr sn assessment
hl taxing AL property. ineluiine mortgaEes. HEHf
embracing The listing system y BESSrrr