The Lafayette advertiser. [volume] (Vermilionville [i.e. Lafayette], La.) 1865-19??, 1908-10-02

money they need at very low rates of
interest, 4 and ) per cent money being
common. All such money remains in
he State, and after supplying profit
able employment to wage earnerS,
manufacturers, contractors and build
ers, finds its way into the banks and
then Is used to discount commercial
paper, buy up public improvement
bonds, move the crops and loans to
farmers, business men and contrac-
tors.
The big life insurance companies,
with hundreds Of millions to invest
annually, are constantly seeking bond
and mortgage loans on a large scale
at 5 per CEN or less, but during the
past ten years not a dollar Of such
money has come into Louisiana be-
cause the law provides that the owner
of the property shall pay full taxes
and when he borrows mortgage money
the lender shall pay taxes on the loan
in the same manner as the borrower
pays taxes on the property motgaged.
This is nothing less than double taxa.
ton of the most vicious char acter.
Consequently the life insurance COM
panies are driven to the States where
there is no double taxation.
The immediate effect of the repeal of
the mortgage tax law will be this:
Millions of dollars will come into the
State to be used in developing build
ing and railroad projects. and, re-
naming here, will swell the available
bank funds to an extent that will en-
able the bankers to take care of much
business that is now going elsewhere
because the money necessary to swing
it cannot be obtained in Louisiana.
If no more than the minimum
amount of S1O, 900, 900 q year is brought
into Louisiana by the repeal of the
mortgage tax law, the working cash
capital of the people of Louisiana
will be increased by 800, 600. 900 in
years, the prosperous towns will
be connected by . network of ~interur-
ban electric railroads just as are the
towns OF the prosperous northern
States, new towns will spring up, the
export and import business of New
Orleans will increase rapidly, the
State will lose non of its cotton bust
ness and none OF its lumber business
to other ports, the sugar planter and
cotton planter will not be forced to
pay 8 to 10 per cent. for needed opera
ting funds, the banks will thrive be-
cause they will have more money to
put out at interest, and the working
will find continuous profitable
employment because of the many new
enterprises opened up.
The best illustration of what cheap
money means to q commonwealth is
obtained by comparing the present
day development of Louisiana with
that OF any of the more advanced
northern States. Suppose for in
Louisiana had enacted and
enforced the investment encouraging
laws OF Illinois, and Illinois had en-
acted and enforced the investment re-
stricting laws of Louisiana. The re-
suit would have been just the reverse
OF what it is. New Orleans would he
to Louisiana what Chicago is to iii.
nois. Shreveport would O boast
OF . quarter Of q million souls. Rator
Rouge, Crowley. Monroe. Laka
Charles and Alexandria would 10
cities OF the second and third elias.
operating many fast and
we'll equipped trains would furnish
quick communication between them
all. The commerce of the State wou,d
total . hundred times its present ag-
gregate. The tax rate would be low
but the tax income would be great.
and there would be good roads, good
schools. good public buildings and
wealthy men all over the State.
Prosperity begets prosperity. The