The Caucasian. (Shreveport, La.) 1900-192?, 1910-05-31
FLOATING BONDS AND TAXA
TON

1AJN.
Some Of the Democratic organs in
Louisiana who are unwilling to sub
scribe to the principle of the tax on in
comes as enunciated repeatedly in the
declarations of the National Democracy,
have been and are laying much stress on
bonds being discredited, as safe and
profitable investments, if held liable to
tsssstfon, as other values which being
visible, can not escape their share of
the burden Of government.
On this issue great minds do not
agree.
In Louisiana some of these oracles OF
Democracy tieorize that if the tax on
incomes were applied to bonds and Sc
curities, that such values would be in
little demand.
Is not this a pretense? Let US see how
it is in Louisiana
In Philadelphia the plant is ascribed
to the increased cost of living, which is
ridiculous, since the poor devils who
earn their daily bread at the sweat of
their brows are neither bond holders
nor bond clippers. 1t is the rich who
revel in Injuries who can afford as
rule to invest their idle money in bonds,
which being invisible, pay no tribute to
the government.
The same pretext may be applied to
Louisiana.
Why should not bonds and securities
be taxed in Louisiana as other property !?
AT any rate, floating bonds issued by
the City Of Philadelphia as we'll as by
the City of Shreveport, for instance,
bearing 4 per cent, do not seem to be in
much demand despite the fact that there
is no income tax which may be ope-
rative against such securities except the
plant of the rise in the accessories of
life and the increased cost of living.
Operating on this basis, the class who
invest in securities unquestioned for
s@safe investment, have, seemingly reached
the conclusion that per cent is not
sufficient and that all such securities
with interest fixed at per cent must
be shorn indirectly of their par value.
Il is with corporations as it is with
individuals.
Recently Philadelphia received hardly
more than one-tenth of proposed is
sue OF 100000 bonds at 4 per cent
which have been pronounced the best
Of security for safe investment, but the
idle money laboring from the increase
cost Of living must have more interest
than the specified i per cent.
If a corporation be, as an individual,
in need Of money for improvements, the
corporation, as the individual, must in
cur sacrifice through the negotiation of
the bonds which must be hoated, or de-
lay OF abandon the improvement
II is true that it is specified that the
bonds must be. negotiated at par, but
attending such transactions. the interest
in excess of the 4 per cent stipulated
q se bond demanded by the money
Lenders ssx the investors, may be COM
n,,setl fef instance, in the letting Of.
contracts for apublic improvements
Whether suoh a procedure may be
commended as Dsing good policy or
whether greater interest than 4 per
cent. say ) Or s. should beS fixed in the
bonds. which would then coApmand the
ready cash in the open market may be
dehatable, blH there would BIZ unques-
tionably saving Of money to the tax
pavers upon whom must rest the bur
dens of government which the holders
Of invisible securities escape If the in
terest were S or 9 per csg@ and the con-
tracts. for instance sti'~et paving, were
6xed accordingly.
II would seem that rfsPhiladelpllia as
in Shreveport that the bend issues for
improvements are negotiable only at
some liberal discount, which is en-
braced in the bidding prices of the work
10 be done BY the contractors who take
their pay ii the bonds.
The Caucasian would feel relieved Of
much anxiety and be satisfied if some
Of the Democratic organs would explain
satisfactorily Why such securities and
all bonds and securities should not be
compelled to pay their proportion of
taxes for the support of the govern
ment. such as IS imposed on the trades
and the professions and all men possess
ing property which IS visible and within
the reach of the law.
rrrn ~ NOTICE.