The record-union., 1898-09-17

maintaining on the book of statutes one
easily evaded; it weakens the concep-
tion of the sanctity of an oath and low
ers the standard of public morality by
inviting the crime Of false swearing"
Mr.. White spoke of the work that
was being done to secure an amend
ment to the State Constitution exempt
ing State and municipal bonds from
taxation. None of the political parties
would insert such a plank in their plat
form, but still the question would be
submitted to the people and the Legis-
lature asked to propose such an amend
ment
He said it should not appear that the
bankers alone were interested, for then
it would be antagonized for that reason
alone. The bankers were not interested.
except as citizens, working for the good
of the whole State.
He was followed by Frank Miller.
President of the National Bank of D. O.
Mills & Co. He called attention to the
depository system Of national banks.
It occurred to him that the bonds of
municipalities in this State might be
deposited with banks to obviate the
necessity of transfer from one county
to another. There were two things that
prevented it at the present time: The
taxation of bonds and the many ques-
tionS raised as to the invalidity Of
bonds. He thought an able lawyer
could find a flaw in almost every mu-
nieipal bond issued.
He also called attention to the method
devised for raising the bonded indebt-
edness of Sacramento after the City
had practically became bankrupt
Professor Plehn was called on by
Vice President Elliott for a few re-
marks. He said he had come to listen
and learn. He could learn more by
listening to men Of experience than by
spinning theories. He had listened with
interest to the paper read by Mr.. White
and it accorded with his views.
Professor Plehn spoke of the diff
Guilty that had been experienced in de-
vising an equitable system of taxation
It was desirable, of course, to tax all
kinds of property, but property in new
forms was springing up continually and
it required all of the ingenuity of leg
islators to meet the problems as they
arose
One form of property always escaped
taxation. 1t is that movable property,
dence of property which can readily
be transferred or concealed. This sort
of property always escapes.
In attempting to tax a part of such
property which can be reached, the
burden is always shifted, as in the tax
on mortgages, which is shifted from the
creditor to the debtor 1t simply re-
suits in lower premiums or higher in
terest. And the man who first pays
the tax that he afterward shifts al
ways exacts little for theI trouble and
the chances of a change in interest
rates. 1t would be decidedly creaper to
the people if the tax could be col
lected at its source from the man who
conceals the bond or the foreign in
vestor.
M. ]. Daniels, of the Orange Growers
Bank of Riverside, said this was a. ques-
ton of as much Importance to the peo-
pie as the bankers, and something
should be done. He called attention to
the manner in which the State had
been discredited by the litigation over
irrigation district bonds. There was
no reason why State and municipal
bonds should not be just as good as
United States Government bonds. The
low rate of interest of Government
bonds was due solely to it's sound legal
character. The high rate of interest
paid on municipal bonds was caused by
duobts as to it's validity Such bonds
should be issued under a uniform law
that would give the purchaser security.
He condemned the law that imposes
a tax on mortgages which is shifted
upon the creditor. The result is that
the borrower pays about 9 per cent.
for money he should get for per
cent.
Mr. Brown of Napa did not think the
bankers should take action in the mat
ter till the people who pay the tax de-
mand it. He thought the tax should be
taken from all personal property, for
not half of it in the State is found and
taxed
Vice President Elliott said that local
banks did not care to take municipal
bonds because taxes would eat up half
the interest, while foreign investors
We're favored by being able to conceal
the bonds and escape the tax.
Mr. Bush of Woodland thought is was
purely a matter of competition. He
could not see that municipalities would
suffer if there was plenty of money.
Bank Commissioner Magee believed
all property should be taxed, but there
were many good reasons why municipal
and State bonds should not be taxed
The best was that suggested by Mr.
Elliott-that foreign investors We're
favored by being able to escape taxa
ton.
That closed the discussion on the
subject, and James A. Thompson
opened the discussion on GA Uniform
Law Of Negotiable instruments" He
said the varying laws of the different
States caused great deal of difficulty
in the handling of negotiable paper
He read letter from a member of the
National Association stating that there
was every indication that many of the
States would soon adopt the uniform
law proposed by the association.
Vice President Elliott called attention
to few of the code provisions and
court decisions that hamper bankers in
dealing with commercial paper. A uni
form law would be as beneficial to the
people as to the bankers and work in
securing it shuold be put on that
ground.
After a little friendly discussion Of
desultory character the convention took
a recess.
The following officers of the Bankers
Convention were unanimously re-elect-
ed at his afternoons session: j. j. Val
entine, Wells, Fargo & Company's
Bank, President: J. M. Elliott, First Ma
tional Bank of Los Angeles, Vice Pres
ident; G. w. Kline, Crocker- Wool
worth National Bank, Treasurer; r. M.
Welch, San Francisco Savings Union,