Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1911-02-02
A FAIR ASSESSMENT OF
MONEYS AND CREDITS
Is One Of The Most Important Ques-
ti0ns Now Before The General
Assembly OF Iowa.

To have money in the bank has al
ways enhanced mans financial rating
in the community where he lives; and
sometimes much more than the a
mount would Justify. In fact a little
money in the bank has often worked &c
the disadvantage of the owner, because
IL he didn't subscribe generously TO every
good cause presented, he was consider
ed a tightwad because Just to think,
he has money in the bank" No mat.
| ter how it came about, whether by hard
labor or rigid economy, or by the sale
of home or other property, there has
been spirit of jealousy against the
party who has had money to deposit or
loan to his neighbors. II is probably
true that part of, this feeling was en-
gendered years ago when the rates of
interest were exorbitant and loss of
property a frequent occurrence because
debtors could not meet their obligations
Then another thing that had much to
| do with the development of this spirit
has been the fact that some otherwise
good and honest men who seemed to
have an abundance all through the year.
had so little on the first of January
judging from his report to the assessor.
The result has been high taxation a.
gainst moneys and credits and much of
of double taxation on the same property.
AT this time there seems to be strong
influence prevailing in favor of equaliz-
ing the assessments so that one thou
sand dollars of moneys and credits shall
pay no more than thousand dollars of
real estate or other property when
rated at its cash value. Some have be-
come so radical as to declare in favor of
no assessment of moneys and credits.
which is an extreme that should not re-
ceive serious consideration.
To illustrate the inequality of tax
alton: One man has q farm of 100
acres worth 81 5000. The assessor comes
along and puts the value at about $40
an acre and then assesses it at one
fourth or $40 an acre. So this man will
pay tax ON $4,000. His neighbor> has
sold his farm for SIC, 900 and has buried
it in the garden, loaned it out or put it
in the bank. No matter what he has
done with it, the assessor puts down
SIG, 900, and assesses him for one-fourth
of it and he pays the tax on "a, 900. To
show the effect of our methods in dou-
BILE taxation, we take the following
case; Mr.. A, who owns farm worth
$16, 900, dies and leaves family. The
widow decides to move to town to edu-
cate the younger children and enjoy
more leisure and some advantages she
has not had in the country. So she sells
the farm to the older son for SIC. 900
and takes q mortgage back for the
whole amount at a low rate of interest
The son pays the usual amount of tax
on the farm and there is no one to raise
objection If it has been assessed at a
proper value. The moth !. moves to
town and when the Assessor comes along
he assesses the notes for $4,000 that
she holds against her son who bought
the farm. The transaction between
herself and son did not add dollar to
the value of the property, but the taxes
paid are 'mnch more than double what
they were before. In California an
amendment has recently been made to
the constitution which says that all
property shall be taxed in proportion to
its value provided that a mortage,
deed of trust, cantract or other obliga-
ton by which debt is secured when
land is pledged as security for the pay
ment thereof, together with the money
represented by such debt shall not be
considered subject to taxation.
The question of taxation is one of
much Importance. And while it is un-
der consideration by the assembly at
Des Moines, we should be pleased to
have it discussed through letters to this
paper