The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1907-04-26
GOVERNOR
UPHOLDS TAX

the full tax, he would pay 4-l0 10 u
company lending 100000; 1-5 to
| a company lending 100000. Any ad-
vance In money rates to borrowers,
above these figures quoted. Is not
caused by the new revenue Dill.
Comparison with Farm Taxes.
THE tax rate on my farms in Bar
bour county is 16 mills. or $500 on
500, 900. Now why should l, farm
err, or any other farmer be required 10
nav 81. 900 on 100000 value as our
contribution to help carry the burden
of the state, and the foreign money
lender be required to pay only $40 on
the same amount.
.fwhv should the banks of Montgom-
cry be required to pay $4,000 tax on
| 500, 900, as they are. and the foreign
money lenders be required to pay only
$40 on the same sum?
"You say IL you do not tax the mon
ey lender he will lend money cheaper.
For the same reason IL you do not tax
the home banks they will lend money
| cbeaper: IL YOU do not tax the farmer,
he will sell his produce cheaper; IL
you do not tax the railroads, they
will carry freight and passengers
cheaper. In fact. you could carry
| this all the way through and bring 1t
to where no business should be taxed,
err.
'It is stated by those who are fight
| ing this bill, that we have placed
| high tax on foreign money lenders.
This Is not true. The tax as 1t now
stands is from four mills to one and
| three fourths mills, whereas the state
tax alone on every other property Is
six and a half mills, not counting
county tax of five mills; also school.
road, bridge and city taxes additional.
summing up in different localities from
twelve to twenty-six mills taxes.
From this 1t can be easily seen
that the foreign money lender Is by the
present revenue law taxed one-third
to one fifteenth the tax rate of other
properties of the State. Instead OF
complaining, / think that the foreign
money lender on this basis of four
mills to one and three-quarter mills,
and home lenders in cities on a basis
of twenty to twenty-five mills has ev-
cry cause to be we'll satisfied that his
taxes are so exceedingly low.
''Will call your attention to the fact
that the price of money in Birming-
ham, in Montgomery, anywhere In
Alabama: for that matter anywhere
In the United States or the world. de-
ponds upon the supply and demand
when controlled by combination. For
instance, IL money Is In short supply
In Europe, 1T will affect the price of
money In America; in Alabama; In
Montgomery. or in Birmingham. Three
years ago i was selling Avondale
Mills notes at an interest rate of one
| and half per cent. net; today ] am
| asked for the very same paper with
the very same endorsement six and a
half per cent. net to seven per cnt.,
and will state here that the Alabama
State Tax Revenue Bill does not touch
that money. yet there is an increase
of forty-five per cent. In the value.
Interest Going up.
Mr.. w. P. G.. Harding. president
of the First National Bank of Birm-
ingham, with a capital stock of ST.
100000 and deposits of $S.o0o,0oe, is
asking quite a bit more for interest
than he did three years ago when his
capital was not SO great nor his de-
poslts SO great. Why Is 1t that he
asks more now than he did then? His
tax rates are just the same and he
has more deposits now than then. In
other words, with the same rate of
interest now as then, he could make
more net money on account of the
largely increased deposit account.
again, the rate of money of all
banks in Alabama, even those charging
six per cent. three years ago is fast
approaching eight per cent, and a stir
higher percentage, and have had
from the highest authority that even
the First National Bank of Pirming
ham, with Its large deposit and CAPT.
tai stock, is contemplating advancing
its rate of interest from six per cent.
to eight per cent, and II ts . notori-
Gus fact that the New York banks are
now demanding twice as much interest
on an outside note as they did three
years ago.
The State OF Alabama has just dis
tributed to the banks of the state from
its treasury. $2,200,000, deposited with
out any interest whatever. Notwith-
standing these banks have the free
use from the State of this immense
amount of money, have they decreased
their rate of interest to US one mill?
There Is deposited with the First Ma
tionai Bank of Birmingham $150.000
of the States money. Has the First
National Bank of Birmingham in con-
sideration of this deposit decreased its
interest charge to the people of Ala
bama? And likewise of other banks
| of the State? l simply mention these
things to show how absurd is the ex-
pectation that money will be lent by
anybody anywhere cheaper than they
| have to or 1t Is to their interest to do.
TT is said that the people forward
money before this bill went into eff
feet at six per cent 1 offered a prom
| lnenL loan agent OIL montgomery a. rep
resentative of one of the largest con-
Germs of the kind in the State, seven
| per cent and did not get the money
| A foreign loan agent of Birmingham
| told me that these companies would
| lend money in Birmingham at five pei
cent. 1 offered them five per cent and
did not get the money.
should Not Allow DictatiOn.
at is true that money has been lent
| in Alabama and everywhere else much
| cause money was cheaper than 1t is
the state on foreign money lenders has
| hardly run a single one from the
state. Any state or people who will
/ allow their laws vised o. dictated by
an outsider or outside interest wants
| stability and is derelict in the dis
charge of its duty.
you take the case of the railroads
of Alabama for twenty-five years; no
| state in the union has made fairer OF
more partial laws OF allowed greater
privileges to these corporations thar
! Alabama, and yet. today, the railroad
corporations of the State are fighting
in the United states court at Mont
/ gomery to destroy the right of the
| state to local self government; trying
| to destroy the highest principles OF
democracy and human rights, that we
| should. dominate and control our owr
| State and make the State authority
| supreme within our own borders.
'I am a strong believer in the great
| forward movement that our State has
/ undertaken in the cause of educafiou