Year: 1873

Capital has triumphed again. On its
fifth appeal to the Supreme Court of this
State it has procured a reversal of all for
mer decisions, and, to day, the men whose
wealth consists of money loaned out.
solvent debts, State and county securi-
ties' and, in fact, evidences of indebted
ness of every description, are favored
Class, whose property is protected by the
laws and the power of the State in re-
turn for which they contribute literally
nothing toward the maintenance of its
government. In another place we pub
lish circular from the State Board of
Equalization, addressed to all Assessors
throughout the State, directing them to
make the assessment for the current fis-
cal year in conformity with the exemp-
tions made by the decision.


1t is difficult at the present time to prop
erly estimate the effect which this decis-
ion will have upon the revenues and
financial policy Of the State. That it will,
by declaring exempt from taxation a
large amount Of property which has here
tofore borne its share in supporting the
expenses of government, enhance the
rate per cent. Of tax upon all property
not so favored, all, we think, will be pre-
pared to admit. 1t will not affect small
counties, like our own, to so great an ex-
tent as it will those in which capital is
concentrated, yet even here, many thous-
ands Of dollars which otherwise would be
listed on the assessment roll, will now
have to be omitted, and the deficiency
thus created made good from the proper
ty not exempt. The county also will
suffer by an increased levy Of State tax,
which is levied equally throughout the
State, and which will be seriously affect
cd by the withdrawal of the many mill
ions Of dollars valuation heretofore tax
ed, but released by this decision. We do
not propose, in this article, TO discuss the
question of " double taxation" argued
by the Court-strict Justice, however,
would seem TO indicate that the borrower
and not the lender should be relieved, if
double taxation exists.


In another point of view, the questions
raised by the decision assume a graver
character. 1t strikes blow at industry
and enterprise in every form. The bur-
dens and expenses of government are
laid upon capital employed alike, in min
ing pursuits, in agriculture and in manu-
factures. A premium, in the form Of
freedom from taxation is offered to the
possessor Of money TO abstain from in
vesting his capital or engaging in any en-
terprise, the lands, Improvements or ma
chinery of which at once remove from it
the exemption from taxation its owners
would enjoy were the money loaned to
other parties. Capital is proverbally
selfish, and its possossor would naturally
prefer TO be drone of society, lend to
others and be free from taxes, .han to
seek investments which will have to run
the hazards of business and bear the bur
dens of taxation also.


There is but one view of the subject
which seems to point to any prospective
benefits. The fact that money will seek
investment at loan instead of being used
in business may have tendency to make
it cheaper in the market. 1t cannot lie
dormant in the hands of its owner, for
then it becomes subject to taxation, and
must seek channel for investment at
some rate or other.