The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-07-30

equity that all kinds and descriptions
Si property should be taxed so as to
burden and sacrifice. The only possible
nnnoeption Is perhaps some form Of
property property like bank deposits. which ex-
perience has shown cannot be reached
"A tax question cannot be solved by
the application Of mathematical rules
logic; Many CONSIDERATIONS must en-
sideratlons Of broad equitlies, Of con- con-
established custom, Of public opinion.
me fallibility. Of human instruments,
the devices Of human selfshness. Men
| ana forms of credit object to taxation
on the ground that their stocks bonds
ana SO forth are only evidences of tho
Itself However this may be, these
efldences Of ownership carry property
s lights OF great value. and their owners
burdens of taxation. Take for instance
me owner of bond secured by a deed
or the bond argues that he should not
be taxed because what he really owns
rs proportionate part of the. land
upon which the bond is secured. and
that the tax on the land is paid by
the debtor. If this We're perfectly
good argument. the owner of the bond
land n portion OF the tax equal to his
proportionate interest; But the argu.
m the nd Is not sound The substance of
equity owns the land subject to the
debt secured on 1t. Every man who
owns it subject to his debts tSs' The dir
| ference between the owner of a Sc
cured and the owner of an unsecured
dedicated to his debt. The conditions
OF his trust give him a quick and easy
way of subtecting the land to the pay
ment of his debt without recourse to
the courts. The unsecured bordholder,
in case of default. must get his juds
the land on which his judgment has
become lien. In either case the prop
to the claim of his CREDITOR The diff
ference is in the method of collection
in the event OF default, and to the
method the lien creditor has a great
Moneys In Dnnk.
The expression. money in bank
is an incorrect use of language The
true relation OF the bank dcpositor to
| make deposit OF money or credit III
bank and the bank owes me the amount
deposited payable on demand. The
chief function Of Il bank is the eX-
change of credits Its deposi,ors are
its creditors, and its borrowers are it's
debtors and what the bank does is
to make the exchange between the man
who owns and the man who buys
credit Generally speaking Il deposit
/ bears no interest because IL is a credit
| on the wing-constantly changing
| hands These deposits constitute a
stream Of credit flowing here and there
/ in response TO commercial laws sup
/ plying with extreme flcXibility the ever
| varying necessities OF business. am
| much inclined to think that neither a
/ general checking deposit nor say
! ings deposit should be taxed; or II
! taxed at all, they should he taxed very
/ lightly My reasons arc these: Bank
deposits being the most fluid forms Of
IL ,1.s II slr
( not impossible. to tax. Credit in this
! form is a commodity for which there
/ is always IA demand, and for which
/ there exists tho machinery for instant
! transfer from one jurisdiction 10 an
! other y serious attempt to tax de :
I posits would result in driving this form
state during the period OF assessment
/ The attempt would be absolutely futile.
/ except TO disturb the financial and COM
/ mercial conditions OF the state No
I State has ever yet succeeded in get
/ ting any tax worth while from bank
/ daepcosetntSs ana In Virginia. OF upwards Of
no use for the state TO attempt the
I Impossible. even ii tho purpose is jus
( tined rs abstract reasoning
! Collection and Disbursement. OF Taxes.
/ Closely related to any effective tax
reform lies the method Of collecting.
taxes. When the law providing for a
I State Accountant Wan drawn II con
tanned PROVISIONS Tor inc lnStd INK = :
Of q uniform system Of bookkeeping
for every collecting and disbursIng Of
/ fccr in the State. It also provided for
n systematic inspection OF The accounts
Of such officers. Certain influences In
/ the General Assembly We're powerful
enough TO beat the bill the first time II
second time AS it stands now the Ia ".
! Is not OF much value and never VIII
he until 1t is enlarged so as TO compel
every officer in the State who receives
a. III q
I by a uniform method and subject him
10 periodic Inspection and supervision
| by state officials What private com
pany doing business Of S7o00.000 a
year would permit its employees to Keep
. their books upon any system or no
system. and not even inspect the books
of the agents who collected its
/ moneys?
In recent letter received from Mr..
sioner Of the State OF West Virginia.
MIR. Blue says: The public accounting
law, n copy OF which YOU have been
mailed, is perhaps the best single piece
in this State for many years The
enforcement Of this new la has been
but its provisions have been upheld in
several carefully rendered opinions By
the highest court OF this state. and
its Interpretation Is now pretty well
sands and thousands OF dollars an
nually
LAS West Virginia inherited our
loose system OF local collections and
accounting, II is interesting TO note
what Mr.. Blue says Of the new account
ing law in his annual report for 1912
He reports as follows:
"'Great difficulty has been expert
enced putting n system OF accounting
into operation; its operation means the
end of loose methods and practices
that have been fastening themselves
upon the state since its beginning. Eff
forts 10 bring about n change from
such methods and practices OF so long
standing 10 a systematic and thorough
accounting naturally met with strong
opposition. The loose method OF han
ding public moneys in some instances
was startling. Without rejecting upon
any public officer, IL is sufficient to sa y
that loose meth DDS and want of proper
system naturally led TO large dis
crepances and great Irregularities
The opposition to a change from the
old, loose methods and practices, &c
uniformity and system was organized
refusal Of certain county officers to OBJ
serve the law and comply Herewith.
understand that Il public Office is ar
agency for public purposes. and that
the incumbent of an office. under our
system OF government, has no property
L.. - L.