58

WHO PAYS YOUR TAXES?

from running into debt ? That is possible. It has beenin former ages, and is now in certain countries, thatmerchants have no debts. It is, however, confined tothe savage state of barter or the semi-barbaric condi-tion where banks and credits are unknown. It is notconsidered possible in the higher civilization of the nine-teenth century, and certainly it would be a hindrance toall progress. Modern finance bases credit on a fixedratio to capital.

“ But the difficulty here presents itself, that in conse-quence of this irregularity most men will endeavor toescape. My associate, Mr. Parsons, for instance, will sayto the assessor, ‘ Come and see my stock, and put yourown appraisement upon it.’ His stock in his store is onlya small portion. He has storage in ten different ware-houses. The official discovers that, but he has four timesas much afloat as he has in his store. Would not therebe in such a case almost an irresistible temptation toevade the tax ?”

Senator Vedder: “Are you aware that the law inMassachusetts reads as this proposed law does?”

Judge ARNOUX : “ I am aware of that, and also awareof the results, which confirm what I have said about theevasions that will be practiced under such a law. Thedate fixed under that law for assessment is the first dayof May. On that day the mills have on hand only aboutone-quarter of the average amount of stock they carry.They sell through the latter part of March and all of