The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-10-13

Factories and Cheaper Money.
The Industrial COMMITTEES. appointed to
promote Savannah's business and indus
trial interests. has not been idle, although
but little concerning it has appeared in the
public prints during the last few weeks.
Its law committee has mapped out con-
siderable work for Savannah's benefit.
The legislature will be asked at its APP
preaching session TO submit to the people
at the next state election two amendments
TO the constitution. The purpose Of one
amendment is to permit incorporated
towns to encourage manufacturing enter
prises by exempting them from taxation
for specific time. and the other is to per-
nit municipalities to fix different rates
of taxation on different classes Of proper
ty. Under the constitution. as it now is. all
kinds Of property must be taxed and the
rate Of taxation must be the same for
all classes OF property.
If the constitution should be amended,
as proposed by the law committee. each
town in the state could exercise its option
as to whether or not it would lend help
ing hand to any particular manufactur-
ing enterprise or business. Savannah, for
instance. could say to capitalists or syn
dicates Of capitalists that If they would
invest $4,000 or $4,000 or any other con-
siderable sum in a manufacturing plant
within her limits, she would exempt the
plant from municipal taxation for three,
or five, or ten years, as the case might
10 Tho faruo Of exapapffon would Of
course, depend upon the desirability of the
plant and the amount of money invested
in it,
1t can be understood readily that encour-
agement Of this sort would have the effect
of drawing attention to Savannah and
greatly increasing her manufacturing in
terests. The question of taxation is an
important one in determining the location
of both small and large industrial plants.
1t is worthy of notice that one of the ar
ticles that the South Carolina constitu-
tional convention has already adopted
gives to towns authority to exempt from
municipal taxation newly established fac
tories for such a term. of years as they
may regard as reasonable, and it Is
fact that South Carolina, Notwithstanding
her political troubles, is making greater
Industrial progress than any other south
ern state. In putting the exemption
clause in her constitution, therefore. South
Carolina is acting wisely. Will Georgia
act with equal wisdom when the question
is presented to her?
Scarcely less important is the proposed
amendment giving municipalities the pow
er to tax one kind of property at one rate
and another at another rate. The main
purpose of this amendment is to provide
the business community with cheaper
money. Where capital is required to pay
a high tax the rate of interest is high. A
high rate of interest, as a rule. has the
effect of lessening the volume of business,
because money viii not be borrowed for
business purposes unless a profit can be
made out of 1t. The rate of interest in
Savannah is high-higher than 1t ought to
be. Business. men complain of it. and
they are answered by the statement that
high tax rate makes a high rate of in
terest necessary.
We can see no objection to the proposed
constitutional amendments. On the con-
trary, they are to be commended, be-
cause their purpose is to remove barriers
to the growth of the city, and the develop
ment of her business and industries.