The Barre daily times. (Barre, Vt.) 1897-1959, 1914-08-27

most discussed of late is the question
OF intangibles. lntangibles are notes,
bonds, stocks, mortgages, book accounts
and cash as distinguished from tangible
property like real estate, livestock and
produce. From the beginning of our
government we have had a general rate
OF taxation applying to all classes OF
property. We have never made scien-
tific classification of our taxable prop
critics. We have taxed intangibles, that
under our usury law would only yield
a maximum income of per cent, at the
same rate as we have taxed other prop
critics whose income is not limited by
law. Our rate of taxation has been
constantly increasing until to-day it
averages nearly two dollars on dollar
of the grand list This means that our
tax is about one-thrd of the income on
loans at per cent. If one.third of all
incomes was collected by the tax gath
erer we would have an immediate re-
vision of our tax laws.
Taking one-third of the income on in
tangibles has had a most disastrous eff
feet upon our morals and our prosper
ity. We know that a large proportion
of intangible property escapes taxation,
honestly or dishonesty. A few years
ago loan association failed in the
Northwest. | have been credibly in
formed by those who had to do with
presenting claims for allowance in the
bankrupt court that over 100000 in
mortgage claims, held by community
of about 1000 people in this state, were
presented for allowance. Practically
none of this sum appeared in the local
grand list. Assuming that there was
an equal amount loaned by each com
munity of q IKE population we would |
multiply S40000o by so and get the re-
suit of $20,000,000 loaned outside of the |
state and escaping local taxation. This !
is large sum OF money and its escape |
from taxation is not the only evil we
suffer That money or large proper
ton of ii would have sought local in
vestment if it had not been subjected
to a confscatory rate of taxation.
You may say that these figures are
largely upon conjecture and in
ference, but let us look at the question
from statistics that we cannot doubt.
In 1878 we adopted our present system
IF taxing banks for the right to receive
md invest deposits at uniform rate of
seven mills per dollar The limit of de-
oosits was gradually raised to $1,000
until in 1910 the limit of single de-
)osit was entirely removed. What has
,een the result? In 80 years we have
accumulated in our savings institutions
lbout 500 100000, between S75,0000 900 |
nd SS0000,000 of which belong to Yer
mont depositors. And what has become |
Il this money! About S50,000,000 of it /
las been sent out of the state. All \
he advantage we get from it is a toll |
t seven mills per dollar. Under our
anking laws, which are none too strict,
one of ii can be loaned in Vermont b
Mess the borrower can offer at least 40 v
err cent security above the loan. As a h
natter of practice he is required to a
i've security of so to so per cent above y
he loan. h
This means that if young man wants d
0 buy farm of 1000 or start any \
usiness of like amount he cannot do p
D until he has accumulated $1,000 or &
YER. Few of our young men are able Fl
, accumulate that amount until they Ii
re we'll advanced towards middle life b
4 the heyday of their hopes, ambitions c.
nd aspirations of their vigor and push, d
ley find the avenues of independent
closed and in thousands of 81
stances during the last 30 years they ia
ave gone into other states, where fc
trough loan associations and other OF
cans they have been able TO obtain b,
ermont money on more favora BILE terms OF
AN they could have obtained it if they liz
ID remained at home. Outside of our W
rming communities, and even within 2,
em, young men have not grown up of
it'll the purpose and intention of de- liz
looping Vermont industries. re
could cite you many instances that tn