Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-01-14
A DEMAND OF THE LEGISLATURE.

This newspaper has discussed Iowa's
Ubiquitous tax on moneys and chedits
before but the legislature is in session
now which makes the subject pertinent
at this time. Will the present session
of the legislature have nerve enough
to tackle a reform which has the po-
tential power of raising the value of
farm lands $40 an acre and all other
forms of real estate accordingly?
At present the Iowa tax on moneys
and credits amounts to per cent. Out
side money untaxed establishes the
rate of interest at 5h per cent on
mortgages and at this rate the tax is
considerably more than one third the
total income. This is outrageously un-
fair to the holders of mortgages. Taxes
on real estate in the city Of MARSHALL
town are less than Is per cent of its
rental income.
Because of its excessive burden nine
out of every ten persons who should
properly pay this tax evade 1t leaving
the honest man or the widow or the
orphans to give up to the state So per
cent of their income from money
loaned. In this respect the tax Is VIC
ious because it breeds dishonesty and
attacks with all the fury of a highway
robber the honest and the defenseless.
Experience has shown in Minnesota
and New York states that registry
tax Of one-half of one per cent yields
more actual income the state than
the extortionate tax on moneys and
credits which reversed means that the
present tax, is useless since less than
one-fourth of 1t is collectible.
Properly and scientifically considered
a mortgage is not property at all and
should not be taxed. 1t is contract for
the payment of money by one person to
another in which the payor pledges
property as security for the payment of
money. The property pays its taxes and
the property represents the amount of
the mortgage plus the amount of the
equity hence when the taxes on the
property are paid the value of the
mortgage has been taxed in the prop
erty likewise the value of the amount
invested in the equity above the mort
gage. A farm assessed at $4,000 pays
taxes on $4,000. If a man deeds it to
his son for $1,000 down and a mort
gage note for $4,000. the farm is still
taxed on $4,000 and the mortgage at
$4,000 or total of $4,000 tax assess
ment upon $4,000 farm. Thus any tax
upon the mortgage itself whether a
registry tax or tax on moneys and
credits merely taxes the mortgage val
uation twice. Such a tax is unjust, I'M
scientific and constitutes a terrific
blight upon investments of local money
in loans upon local property. It
scourges monied people until their
money is driven out of the state foe
loaning or investment.
What Iowa needs is ali the money
she can get for men to borrow right at
home. The more of 1t and the cheaper
II is the better for all values and the
more encouragement to the building OF
improvements and the operation of fac
tories.
When money Is easy to borrow at
low rates of interest men start to buy
ing land at constantly higher values
thus cheap money raises land values.
When money is easy to borrow at low
rates Of interest, more cattle are fed
and more big barns and new houses
are built which employs labor and i'm
proves the country
When money is easy to borrow at
low rates of interest many a man bor-
rows and builds a house on e. vacant
lot or extends his factory and employs
more men. Cheap money and plenty OF
it always starts prosperity on the
boom. Why. if the Iowa legislature
would just have sense enough and
nerve enough to abolish this ubiquitous