New-York tribune., 1901-03-15

Stranahan's tax, could he had at 96. They are
absolutely safe and instantly convertible, and
can be bought cheaper than a mortgage which
under Mr.. Stranahan's bill would yield the same
income. On the same day Atchison adjustment
per cents. equal in income to the present ~
Der cent mortgage when taxed, could be had at
93A Erie bonds of different classes yielding
per cent ranged from S6H to 9Ias. With these
and many other investments available at prices
yielding as much as the mortgages spoken of
by Mr. Stranahan, the prediction that money
will still seek mortgages at 4 and 412 per cent,
and rejoice to pay five mills tax for the prlvl-
lege seems rather rash. Passing from the con-
sideration of city 10 rural mortgages, Mr. Stran-
ahan says:
In the rural counties. where farm mortgages
are almost invariably per cent 1t VIII be
impossible to shift the burden TO the borrower
for the reason that he is paying the highest rate
now permitted by statute, and borrows with the
greatest difficulty even at that rate
The notion that the lender who now is able
TO exact the full legal rate will let his income
be diminished by the fax is discredited by Mr..
Stranahans own statement that the farmer Is
paving the highest rate now permitted by
statute and borrows with the greatest diff
.culty even at that rate If he bOrrOws with
difficulty at q per cent, what chance Will he
have TO borrow at all when the lender can
realize only 5l2 per cent on the money! The
investor in that would of course, turn to
what he regarded as a better investment yield
ing 515 per cent, or else exact uSury under
cover as the price of accommodation. Thus the
rural property owner who already has the
hardest time to borrow and must pay the high
est rate for his loan would be put in the position
of that pitiable class who resort to usurers and
note shavers in their need. The corporation
however, which may want 10 borrow ar per
cent on It's real estate will find it easy, for Mr.
Stranahans bill exempts its mortgages from
the tax.
Having argued at length 70 show that the
tax will not fall on the real estate. Mr.. Strana-
han turns squarey around and says:
It will be we'll to bear in mind in discussing
the point that the borrower will pay the tax.
Then he proceeds to argue that even so. his
condition will be improved because he will be
relieved of general tax for State purposes. How
can that be? Real estate can only be relieved
by this bill 10 just exactly the amount that the
mortgage tax raises. Other relief may come
from other laws, like bank and corporation
taxes, but the relief of real estate by mortgage
taxation will he measured to the cent by the
receipts of that tax, and the relief will be dis
tributed TO all real estate, mortgaged or free,
while the tax, borne, as Mr.. Stranahan admits,
by the borrower will fall only on the real estate
owners who are in debt. SO, instead of paving
4 smaller even the same proportion of the
States expenses because of the mortgage tax.
they will inevitably pay n larger proportion,
But, whatever they pay. ii must be queer sort
of a tax which in one sentence is defended as
falling on the lender and the next as falling on
the borrower