The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1909-12-28
EIat Rate on IntanalbIes

One effect of the present law is to
drive our savings banks into money
brokerage business, function for
which they were not originally in
tended. And how can this be other
wise? When a person residing, for
instance, in Springfield village and
has two thousand dollars, one half of
which is placed on interest in a bank
and the balance loaned on mortgage
he sees the former taxed at the rate
of seven dollars per thousand for the
benefit of the state, while the latter
contributes about twenty-one dollars
| to the local treasures. This on the
| face of it, is apparently unfair and,
taken in connection with the usually
high and always fiuctuating and I'M
certain local tax rate, explains why
there are so few mortgages taken by
| individuals save through a bank. Fair
ness compels us 70 add, however that
the person thus depositing, has the
advantage of being able to collect his
money at any time and without ex-
pense, but for all that we respectfully
insist that he should have the right
to loan his money wheresoever he
will at a reasonable rate without run
ming the risk of having his whole in
come therefrom confiscated through
| taxation. This condition has excited
a species of wrath on the part OF
some, towards our savings banks,
which we believe to be entirely un-
Just In connection with it, there
are two facts that should ever be
kept in mind, namely that the state
government must be supported by
taxation, and that more than two
ffths of the entire expense thereof
is now borne by revenue derived
from the tax on interest bearing bank
deposits, thus relieving the indiviual
of the burden of direct tax there
for: but Notwithstanding this, we
wish conditions in the state were
such that nothing more than nomi-
nal tax on these deposits were neces
sary, for we believe that, in the long
run, it would work for the material
benefit of the state in that 1t would
tend towards cheaper money, the
very thing above all others needed
| by the farmers, the merchants, the
manufacturers, and all who are in
any way engaged in enterprises
which tend to the development Of
the great natural resources of the
state. For this reason, and because
the present rate of seven-tenths OF
one per cent is excessive when COM
pared with that of other states that
tax such deposits at all, we believe
that it should be materially reduced
and that the field in which banks
are permitted to invest very much
broadened, always at the same time
however, insisting that whatever
the rate may be, like rate should
be levied on like securities held by
the individual. Such a change as
we advocate in reference to a low
| fiat rate on all intangibles would
render it at least feasible for
persons depending upon some of
these things in returning their tax
lists. We have tried to accom-
plish the impossible by force. 1t
has failed. Let us try persuasion or
encouragement for while and see
how it will work Let us remember
that everything taxable except what
we can actually see, is much like a
| flock of wild birds, the more we
shoot at them the higher they will fly
and the more secluded will become
their nesting places. Let us drop our
gun and try the salt method for a
while as suggested in the childrens
story and see how it will work.
The writer believes that the legis-
lature of 1908 made a very serious
mistake in not providing some meth
cd whereby all possible facts touch
ing intangibles, could have been gath
cred and submitted to its successor
so that that body might have intelli-
gently considered. among other
things whether or not some consider
able proportion of taxes derived from
placing fiat rate on intangibles
could well be taken over by the state
for highway and school purposes and
the present law, which levies dir
rect state tax of five and eight per
cent respectively for these purposes
be repealed.-Springfeld Reporter.