The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-02-05

kept in our own banks where Il can BE-
made useful 10 trade and commerce, and
we want our banks TO feel safe In losning
ii TO people who are employing labor M
cur midst and buying the products Of the
farm and ranch, Stop or even check this
circulation OF money through the channels
which banks afford, and stagnation, ruin
and suffering OF an appalling character
will Immediately ensue. Now. In the tax
commission bill. 1t is proposed to put /;
Within the power OF our tax collectors in
Houston and Harris county to collect
tax OF cents on every dollar on de-
post In any OF our banks on the first day
OF January OF every year. and the bill
provides method might say a method
of devilish ingenuity-hy which this tax
TO the full amount OF every dollar on de-
posit can be collected with unerring aud
relentless certainty. II he lives In
Houston can he escape fne OF
$50 on every $1,000 which he Is so foolish
as to leave ON deposit in one of our banks
on the first day of January, since 1t Is
proposed that the board OF equalization
shall have power to compel bank officials
TO appear before them and testify as 10 the
amount which any OF their customers had
on deposit on that day? IL 1t was not
intended TO actually compel the payment
of a tax on deposits amounting with us
to $50 on the thousand why was this
provision inserted in the billg Now, why
fine man $50 on the thousand for put
ting his idle money into circulation
through the instrumentalty of a bank IN
his own town. when he can just as easily
lock II up in safe or send it TO a bank
outside the State? What does tax on
money ON deposit in a bank signify. Let
me Illustrate. / have $1,000 in November
which | do not expect to use until some
time in the spring. l put it in bank, and
the bank loans il to a merchant, and
the merchant goes TO New Orleans and
buys $1,000 worth OF goods and puts them
in his store In Houston. and they are
there on the first day of January. Now
am taxed $50 on my $1,000 deposit al
though in point OF fact my $1,000 is no
longer In oank since the merchant lbs
taken il to New Orleans and exchanged
II for the $1,000 worth OF goods now In
his store, and on which he is also taxed
$50. Taxation has thus been doubled With
out an Increase OF wealth to the extent
OF nickel ON which Ia base the increased
tax \ tax Of $50. however. has been lev
leu upon a trAde--Epon an exchange There
is no more wealth in the community than
uhere was before. since my $1,000 in money
has gone out OF the community to New
orleans and been exchanged for the mer-
chants $1,000 of goods. Yet | am fined
$50 for putting this money where the mer-
$50, besides Interest," for using II. II is
a matter of surprise that provision WAS
net also made in the bin for fning the
pank $50 more for negotiating the trans
action. Again | ask IL the people OF
Houston are willing to raise the funds
necessary for the support OF their own
local government without resorting to
a scheme like this, which will inevitably
result on the first days OF January. in
the withdrawal Of all money on deposit
IN banks, causing financial panic in everv
city in the State, why not let them do
u: Why arbitrarily compel them To b.
party to plan for increasing revenues
as Foolish and as short-sighted as thai
of The khediye of Egypt. which resulted
in the destruction of olive trees It had
taken scores of years to grow?
Now the question arises How Is home
rifle in taxation TO be brought about and
what are the specific plans in the way of
tax reform which its advocates have in
view? In the first place, OF course, the
constitution of the State must be so
amended as to permit of its adoption The
substance Of the home rule laws OF New
Zealand and New South Wales. and also
of the bills which have already come
| within very few votes OF being adopted
( in several of the States Of this Union in
effect authorizes majority OF the voters
of any political municipality TO exempt
( from taxation for local purposes any Of
the general classes of property now sub
ject TO taxation and TO raise the Requisite
revenue by an increased tax, II necessary.
on property not thus exempted In New
Zealand, and | believe in New South
Wales also, the right to determine this
question is submitted only to voters who
pay direct ad valorem taxes: and for my
own part. I see no objection TO its being
so limited in this State also BY thus
trusting in freedom. an opportunity will
be offered to some community In advance
doubtless Of others, to blaze the way to-
wards n system of taxation based on
sounder and more scientific principles than
can be expected from the average Of the
politicians whom we usually send to our
I legislatures. Suffice it to say, however,
that In a proper system OF direct taxa
ton, things only viii be taxed and no;
evidences of them. The subjects or direct
taxation should consist only of. a. land
comprehending special privileges. IL any
attached to same. such as franchises. and
| ~, things tangible, which are visible to
the senses, such as houses horses ma
chimes, etc, and which constitute the
wealth OF community, In the correct
economic definition OF thai word Oi
course. home rulers would insist that Id
attempt be made to tax mortgages OF
credits. because there Is nothing tangible
4 ABOUT mortgage OF a circuit.
Suppose half the people in Houston
were TO borrow SIS 100000 from the other
half, would that increase the real wealth
/ Of the community TO the extent OF a dol
lar? Would IL put the community in a
position in which It could any more easily
raise large revenue for governmental
purposes? And yet under the provisions
OF the tax commission bill, it would have
the effect OF running the assessed valua-
ton Of the town from s25,O00.O0O up e
$40 900 00U.
You can only tax material things. a
material thing always has its origin in thG
soil, and is something which can be seen
and weighed Wealth consists only o
material things. formed and fashioned D,
the hand of man. for the purpose OF graft
tying human desires. This is definition
Of wealth which will convey the sam,
meaning under all circumstances, and uu-
less a definition bears this test. It liz value.
less II you wish to ane people for Dor
rowing money, for trading and exchang
ing property, do 50, but don't do It upor
the mistaken idea that you are taxin,
wealth.
For the past ten years an ordinance O.
the city Of Houston has compelled III,
preparation OF the assessment rolls in sucl
manner as to show the value OF the land
separately from the value OF Improvement
on land.
The land values amount to about sis,