Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-01-12
WEDNESDAY. JANUARY 70, 1898
Personal PROPERTY TAXES.

Il
Members Of our General Assembly would
do wen not TO be too sure that the pro-
blen OF additional revenue in Virginia
has been solved by the passage of the
Parks bill. Possibly that measure may
increase the States tax-receipts to some
extent: but our information leads us TO
believe that whoever counts upon its pro-
ducing a great sum will be wofully dis
appointed.
All moneyed corporations pay their
taxes on their capital stock. and the re-
quirement as to listing separately each
note and bond will. therefore, be appli-
cable chiefly to individuals. Most Of these
keep bank accounts and are in the habit
OF depositing their notes as a basis of
credit And when these notes are thus
discounted or are held as collateral they
at once become the property of the bank,
and the individual has nothing TO do with
returning them for taxation.
So Mr.. Parks's bill cannot affect the
great corporations. nor the many indi-
viduals who use their notes and bonds as
a basis Of credit with the banks. 1t will
affect mainly the small note broker, who
has few dealings with banks. and other
private persons, who either DO not keep
bank accounts or are never borrowers
We find the impression prevails that in
Virginia personal property TO an unusual
4. extent escapes taxation; but our Informal
ton. gathered from those who have made
study Of the subject. is 70 the effect
-
tate, the percentage Of personal property
returned for taxation in Virginia is above
the average. Our relative percentage is
much larger than that in the State of
New York. Notwithstanding the fact that
1t is well known that New York is vastly
richer per capita IN bonds, stocks, and
money than Virginia.
All the nations Of the earth and all Of
the States Of this Union have found it
difficult to reach personal property. 1t
really seems that we in Virginia. have
been as successful as the average Of them.
True, town and country seem TO vie with
one another in seeking to escape the per
sonal-property tax. but II may he that
after all the burden is more equally dis
tributed between town and country than
most people imagine.
In the country. as a rule the average
value giyen for horses. cattle. farming
supplements. and crops in the barns is
f3rcically low. Everybody knows that this
IS a fact. There is hardly any disguise
about II. on the other hand in the towns
one holders of evidences of debt as rule
avail themselves of all the technicalities
OF the law TO escape listing such securi-
ties
Those who have been using their real
estate as actual security for loans will
find themselves much injured by this new
Virginia law. For a time. at least in
vestors will be chary Of buying such
paper. Possibly the result will be that
the agents Of northern capitalists will
eventually do the bulk OF the money-lend-
ing business upon real estate in Virginia
They can lend out their money here. take
their notes off to Boston or New York
and have no taxes 10 pay IN Virginia. In
some OF the cities Of the South a very
considerable business of this sort is being
carried on.
However we do not care to dwell longer
upon this phase Of the question. What we
wish to emphasize is that those members
OF the Legislature who allow themselves
10 be persuaded that they have solved
or even half way solved. Virginias nnan-
eial problem by the passage OF the Parks
bill will be wofully mistaken.
We do not ask them TO take our word
for this, but to make inquiries on the
subject from such of their constituents as
are in position TO know how the law viii
probably operate.
The time may possibly come when fair
valuations will be given TO notes. horses,
bonds. cattle. farming implements, shares
OF stocks. crops. etc. but that time is not
yet And so long as our laws permit one
class OF taxpayers to dodge taxation,
other classes will seek loop-holes Of the
same description. Human nature is weak
al best. but never more so than when
the individual is called upon 10 sit In
Judgment IN cases where his own pecu-
80 H..