The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-02-15

at the same time were great bene-
fit to the people, in the country and
city alike.
Tax on Deposits Bad.
The tax on moneys on deposit in
banks, we think, should be limited in
some way SO as not to include mere
running accounts of individual de-
positors. Exemption should be made
of money in savings banks on inter-
est. Savings banks are vital factors
in building up the communities. They
are the only means Of keeping safe
the small Accommodations of the peo-
pie and returning the moneys
promptly into commercial channels.
The deposits are often the sole wealth
of poor, deserving. Woodworking and
saving people. To take from such
people more than one-half OF the to-
tai earning power Of their capital Is
wrong.
The term, capital in business" as
applied by the State to manufactur-
ers, Joint stock companies. etc. (other
than merchants), has given the jury
more serious consideration than any
other taxable subject. This jury could
not accept as q fair definition or cap
itaI in business for taxation purposes
book accounts considered good,
..plus bills receivable,
''plus ali merchandise on hand.
plus real estate desperately taxed1,
without deducting the live liabilities
(borrowed money and merchandise
owed for). For 1t Is weil-known
fact that in every community = large
part of the business done by many
firms LIS on money borrowed from the
banks and merchandise owed for to
merchants and manufacturers.
HaPd1hfn prf RnsinPsS Men.
II the merchants. manufacturers
and farmers of this State are re-
auired to pay taxes. not only on their
own capitai (which is what they have
less what they owe). but on Dor
rowed money (which Is used with the
real capital in book accounts and
merchandisel. then, In our opinion,
the progressive communities OF this
State would in a few years lose their
best enterprises
Many millions OF money are today
borrowed from our banks and en-
ployed in the mercantile and manu-
.eacturing industriss hers ara thsss
billions tbesides the real capttal
taxed) are not a part OF the real es-
tate of those borrowing the money.
and IL taxed as capital OF the bor-
rowers, would not only destroy the
struggling industries, but many sue
cessful ones.
No Industry would locate In a com
munity which not only taxed the plant
s sh.en a Is jasi, and Which fsaed ali
real. capital, that liz cash In business
(which is tust1. but in addition re-
the money they borrowed In order 10
carry the extra credits on their books
and to pay for labor. materials. etc. IN
the course Of business.
If we suppose that the industrial es-
Establishments of this State are made
to give In their just taxes In the form
OF assessments OF plant and machinery
and above their liabilities to banks and
other merchants and manufacturers,
then the necessary money borrowed by
them from the banks belongs TO me
which IL taxed. or to the bank deposit
tors as balances. These uepositors'
balances on hand February LIST are also
money borrowed by the taxable indus
tries from banks, etc, In the state 10
taxed before 1t reaches the industry.
Took Commos sense View.
The. Jury has placed = common sense
taxed only unimpairea capital in busi-
ness and still found large amounts OF
actual net capital untaxed, as the citt-
an incomprehenstble law. naturally
CONSTITUTES # in his own favor. In fact.
to accept the definition Of Capital IN
Business, heretofore mentioned As the
proper and legal one. would. N our
opinion, mean the Indictment OF practi--
cally all business men throughout V,r-
ginia who borrow money for the con-
duct OF its Industries. and also for in
vestments in taxable securities. Capt.
tai In business flor taxatione should
mean "the balance OF taxable assets
over and above just debts and the ex-
emptions allowed by law" IL this de-
flnition or some other equally as clear
and couitabia were written in the law
there could be no well founded "fgnor-
ance" OF the laws meaning-and the
there could not exist the excuse, we
md so widely prevalent, that the pre-
sent laws being seemingly intent on