The Birmingham age-herald., 1903-01-23
Revenue Bill in Legislature Pro-
 Vokes Much Comment CLEARING HOUSE MEN ACT
Resolutions Protesting Against Enact ment Into Law of Sections 3, 10
 f1-Interviews With Lead ing Citizens.

The revenue bill prepared by State Au- ditor sowell and introduced in the legis- lature by Chairman Simpson of the ways and means committee Wednesday and published in full in yesterdays Age-Her- aid has caused a great deal of comment iI Birmingham.
 The Birmingham Clearing House asso- citation met yesterday afternoon in the office of Caldwell & Ward and unani- mously adopted resolutions protesting against the enactment of the stamp tax feature of the bill and calling for the de- feat of sections g, 10 and Il.
 The resolution follows:
 Whereas, The members of the Bir-
 mingham Clearing House association
 deem 1t their duty to protest in be-
 half of their customers against the
 enactment into law of sections nine
 (9), ten Q0) and eleven CID or an act
 Ito be entitled an act to better pro
 vide for the revenue of the state."
 now before the legislature.
 And, whereas, The stamp taxes pro-
 poses by those sections would not fall
 upon the banks, but upon the people
 who borrow money, thus increasing
 the burdens upon the debtor class;
 therefore be it
 Resolved. That the president of the
 Alabama Bankers association be ana
 Is hereby requested to take such steps
 as may be necessary to call the atten-
 tion of the people of the state to the
 evils of the sections referred to and
 to use every effort to defeat them,
 and the banks of Birmingham hereby
 pledge their earnest cooperation to
 this end.
 The following were present at the meet ing: J. B. Cobbs. president of the Ala bama National bank; w. P. c. Harding, president of the First National bank; W. A. Porter, cashier of the Alabama Ma tional bank; E. F. Enslen. cashier of the Jefferson County Savings bank; T. O. Smith, vice president of the Birmingham Trust and Savings company; John D. Elliott, cashier of the Peoples Savings Bank and Trust company; B. Steiner of Steiner Bros, and George Ward, manager of the association.
 After discussing the revenue bill pro- viding for the placing of stamp tax of 10 cents for every $100 on all notes, bonds, mortgages and other evidences of indebtedness, the resolutions were unan- imously carried.
 It was also decided to send a copy of the resolutions to General Whiting, pres- ident of the State Bankers association. with a request that the matter be taken up with the banks in the rest of the state.
 A number of the citizens of Birmingham were seen yesterday and asked for an expression of their views regarding the bill.
 w. p. 0. Harding.
 w. P. G. Harding, president of the First National bank, said: q secured a copy of the new revenue bill late this afternoon and have not had time to make careful study of 1t. understand, however, that sections g, 10, Il and 12 provide for the establishment of a state stamp tax of 10 cents per s100 on all notes mortgages, bonds or other evidences of debt. Stamp taxes are inconvenient and have always been unpopular. They nave at different times been imposed by the general gov ernment, but have been repealed as soon as the necessity for them no longer ex- isted. A stamp tax levied by this state other states having no such requirement. would inevitably cause a great deal of confusion in business.
 ''The object of these sections in the bill seems to be to collect a revenue from foreign corporations loaning money In Alabama, but the result would be that the cost of all certificates required by law to be attached to evidences of dent would have to be paid by the borrower, so that the people of the state and not the outside capitalists would be the ones who would be really paying the tax.
 Section g provides that no tax ex- cept the privilege tax of 10 cents per s100 to be paid at the time the evidence of debt is created shall be collected in this state on any l-ote, mortgage, bond or other evidence of debt. This exemption of mortgages from general taxation strikes me as eminently wise and proper because 1t would encourage citizens of the state to invest or loan their money at home, thus making home capitai available fer local development. It seems to me. how ever, that the revenue that the state would derive from this stamp tax would hardly be greater than that 1t has been receiving from taxation on mortgages held by rarties within the state, and that the best plan would be to exempt all mort gages from taxation of any kind. as the effect of this would be so lower the in- terest rate, thus benenting the debtor class. To require customer of bank to pay state tax of s1 every time he made a note for 5000 would be onerous and un-