Tensas gazette. [volume] (St. Joseph, La.) 1886-current, 1908-10-16
AN IMPORTANT CONSTITUTIONAL
AMENDMENT.

tllt IuSt CtCCipAi VI WV ~ .
and which are to be voted on nj
the general election i'll November
is one providing for the removal
of the tax on mortgages. The fact
that mortgages are taxed i'll this
State has kept q great deal of
capital from seeking investment
in Louisiana, and has Nactually
driven several large foreign finan-
cial institutions out of the local
investment field.
The worst feature connected
with this taxing of mortgages,
however, has been the hardship
imposed upon borrowers. While
the tax is levied upon mortgages
it is actually the property mort
gagged which pays the tax, as the
amount of the tax is figured III
the interest charged for the
money. The unfortunate borrow
er is therefor compelled to pay a
much higher rate of interest than
he should pay when he can secure
the money at all, as the very fact
that the tax is levied oil mort
cages restricts the volume Of
money available for investmet III
that way.
The tax on mortgages is actually
double taxation, because the very
property pledged to secure the
mortgage is assessed the full rate
of taxation, while the mortgage
which it secures is also taxed. the
property owner paying both taxes,
the one directly to the tax gath
erer and the other indirectly in
the shape of a higher rate of in
terest which he is compelled to
pay OH the borrowed money, to
secure which his property has
been mortgaged.
The entire State is interested
in the passage of this amendment,
as the freeing of mortgages of
taxation will practically improve
the value of all realty holdings
by making it easier to borrow at
reasonable rates Oh such security.
Capital which now shuns invest
ment in realty, particularly in
the country and smaller commu-
mites, owing to the tax on the
resultant mortgages, would seek
investments of this sort owing to
their safety if the tax were re.
moved.
While sentiment seems over
whelmingly to favor the adoption
of the amendment it will not dc
for the business aud agricultural
interests to neglect the matter,
as it is always possible for a good
measure such as this one to fail
through the unthinking opposi-
tion of voters who are not well
informed as to the Importance of
the matter, and the apathy of
those who desire its passage, but
who neglect to vote for it through
overcoufidence i'll uuanimity OF
public sentiment in it's favor.
Que of the greatest needs of the
State of Louisiana is additional
capital. Local capital is not cap,
able of properly developing the
resources of the State owing tc
its insufficiency. As a result mon.
ey rates are high and many i'm.
dustries aud enterprises lauguish
through sheer inability to secure
the financial assistance required
Every effort should therefore be
made to attract additional outside
capital to this State, aud every
obstacle that tends to drive cap-
ital away should be carefully re.
moved. One of the most formid-
able obstacles has been the tax
on mortgages, which not only
kept outside capital from seeking
Investment in mortgages, but dis
Outraged its coming here alto
gether owing to the belief created
by the unreasonable tax that this
State desired to discourage the
Influx of outside capital and keep
1T out altogether. Let nobody then
neglect to vote for the amend
ment by taking it for granted that
1T Will encounter no opposition.
.Picayune.
Judge Wilkinson excorciated the