The Washington times., 1914-04-14
MR.. COADY OF MARY
LAND.

Congressman Charles p. Coady of
Maryland, who in point of service is
one CT the very newest members Of
| the House, having been elected few
months ago to fill a vacancy, ap-
peared in action yesterday in a fash
ion greatly to his credit. The fact
: that he appeared as an advocate of
| reasonable legislation for the Dis
trict of Columbia is not the entire
Justification for paying high compli-
ment on the manner in which he
handled himself. He was addressing
himself to the subject of taxation,
and he demonstrated a grasp and
understanding Of the fundamentals
Of that subject that pointed to the
probability of most useful service.
He showed that he knows the mod
ern thought and methods in dealing
with taxation; that the experience of
the most advanced countries in 9TH
er parts of the world, and Of the
most progressive cities and States in
this country, is familiar to him.
Mr.. Coady showed most effective
ly how unreasonable is the Johnson
Prouty amendment to the George
taxation bill. This amendment would
subject all personally, including the
, so-called intangible forms. to the
same tax rate as real estate. Mr..
Coady, representing Baltimore dis
trict, has especial reasons for know
/, ing what it means to subject moneys
and credits to high tax rates. Balti-
more recently lost regional reserve
bank on the showing of its slow gain
in banking capital and resources;
and that slow gain is accounted for
by the fact that Maryland has had
a law for the taxation of banking
capital at so high a rate that it has
discouraged that kind of investment
in the State. Money is liquid, and
goes where it is best treated and
most appreciated, just as surely as
| water flows down hill.
Mr.. Coady pointed out that the
taxation of bank deposits at the rate
of $1.5O per s10O, for example, would
absorb half the earnings of deposits
on which 3 per cent interest is paid.
The depositor, finding that he can
escape most of that tax by the SIM
PIE expedient of depositing his
money elsewhere, would go outside
the District; and Baltimore, Mr..
Coady Hospitality announced, would
welcome the deposits from Washing
| ton.
Two or three decades ago it would
have been no occasion for surprise
that such legislative body as the
House District Committee should
consider seriously such treatment
of moneys and credits. In that day
the modern attitude toward this de-
partment of tayation was not under
stood so well as now. The people
who insisted on the exemption or the
nominal taxation Of moneys ard
credits were regarded as mere tools
of privilege. But today matters are
different, as Mr.. Coady demonstrat-
ed ir an effective way by quoting
the laws of the States. For ex-
ample, he showed that in Judge
Prouty's home State of Iowa, whose
laws that gentleman had lauded, the
State fixes a rate of so cents on the
dollar for taxation of the same prop
erty that Judge Prouty would tax in
the District of Columbia at $3.50 per
hundred. Iowa, that is, makes the
rate one-third as high as Judge
Prouty would have it here; and 9TH
er States have it yet lower.
That gentlemen like Mr.. George
ard Mr.. Crosser should demonstrate
grasp of these problems is no sur
prise; they have been seen and heard
from before, and are recognized as
having the twentieth-century idea.
Mr.. Coady is entitled to recognition
as another man who understands,
who has taken the trouble TO inform
himself, and who knows how tc make
effective use of what he knows.
DINNER IN THE DINER.