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WHO PAYS YOUR TAXES?

that it is difficult, almost impossible, to obtain money onmortgage at seven per cent, per annum, when mortgagesof undoubted character can be largely purchased at adiscount of three or five per cent, per annum, the capi-talist thus compelling the debtor to pay the tax. Thus,while the best security known—that of a lien on realestate—should command money at the lowest rate, itreally has to pay the highest, in consequence of theoperation of unjust laws.”

A strong comment on the taxation of indebtedness isembraced in Justice McKinstry’s opinion in the case ofThe Hibernia Savings and Loan Company vs. The Assess-ors, etc., as follows:

“ Supposing that the necessities of government re-quired a tax of one hundred per cent, on all values, or—what would be the result of such a tax—an appropria-tion of all the property in the State, it is plain that theState would receive no benefit from evidences of debt dueby some of her citizens to others, and payable out of thetangible property which the State has already taken.

“ The legislature may declare that a cause of actionmay be taxed, but a cause of action cannot pay the tax;and this because it has, and can have, no value independentof the tangible wealth out of which it may be satisfied.

“ It may not be possible in every case to show that thedebtor has paid the tax assessed to his creditor. Butit admits of mathematical demonstration, if other prop-erty in the State has been assessed at its value, that the