Crittenden record-press. [volume] (Marion, Ky.) 1909-191?, 1911-01-26

Svision of the tax system that 1t origi-
mates largely in the desire of banks to
escape from taxation. Let no one con-
Germ himself about the. banks In this
matter The tax on banks does not stop
there. There is such thing as Incl
dence OF taxation. which in. commc,
parllance merely means Ssh, shouidering a me
has to pay a high rate of taxation II
gets it back from the borrower. II that
borrower is a retail merchant he gets
rover is the owner CO real estate who -
putting money into houses. he gets 1t
back from his tenants. who may Ne poor
men. In the end. the tax will be borne
by somebody else than the bank. The
bank will continue To earn dividends Tor
its stockholders.
ilut do not mean that too heavy "a
tax on bank has not an unfavorable
effect. The unfavorable effect of II Is
uron the community. however. as
whole. Rather than stand too heavy
their capital and surplus. as many OF
them have done in kentucky. Under the
law of this State. the amount that can
be loaned by a bank 70 any one indiv!d-
ual or firm or corporation is limited to
a fixed percentage of the capital and
surplus If that bank The result. there
fore. Of reducing the capital and surplus
of banks is to reduce the amount OF
credit that can be given and to restrict
the banking facilities of our large mer-
camille and manufacturing establish
is not a large establishment in the state
to-day that can procure from its local
banks a sufficient line of credit to carry
on its enterprise. Nor Is thcre In KEN
tax We put on capital and banking de
posits a single institution or any group
Of institutions strong enough to float
really big financial enterprise.
A FarsicaI Result.
Contrast with this the fact that for
1910 there were listed in The State Of
Kentucky for taxation bonds to the
amount of " IN ,s s Cp of iG San
seven-tenths OF one per cent. Add to
bonds the amount listed of stocks and
money and they all amount tn less than
10 per cent Of the total and without
mortgage notes (Which can't ESCAPED to
less than ; per cent of the total This
is absurd. but 1t is true. No man Will
presume to say that this is more than
tually owned in this state subject to tax
alton under the State laws as they
stand. OF this mcagre amount nearly
one-half was listed in jefferson County.
How It Could Be Better Done.
There are ways of deriving revenue
from these classes OF property that IS
cape " Kentucky under our present sys-
tenn. Let me illustrate. We attempt. as
have shown. to tax savings deposits
yielding three per cent by the same
method and at the same rate that we use
In taxing any other form of property
which pays fifteen or twenty or twenty
five per cent and which Is fixed and wish
bic in its character. The consequence Is
that practically no savings deposits are
given in for taxation. In the New Eng
land States savings deposits are taxed
at rates varying from some thirty To
forty cents. This tax Is paid by the
bank, and the bank adjusts It with the
owner Of the savings deposit. The State
is certain of the revenue since II is
content to take reasonable percentage
~ the income derived from the deposit,
and il has no difficulty in collecting it.
1t is not forced To attempt to find this
property in the hands Of the individual
holder.