COMPTROLLER OF THE TREASURY. . Xxix

holder, but not secured by the pledge of his realty, is taxed
for the value of such debts, but the owner of those debts
which are thus secured, is free from taxation as to such debts.
The holder of the property owes both debts ; and if the
taxing of the debt is a double taxation in the one case, why
not in the other ? The debt is the property of the creditor,
in either case, and the interest accruing from it, is his in-
come in the one case as well as the other. It is not the
property of the debtor in either case, and he call only be in-
terested in the taxation of that debt, by an engagement to
pay such taxes as may be levied upon it, or by the exaction
of a greater amount of interest by the creditor, to meet such
taxation. This he may do, if he chooses> in either case,
but cannot be forced to do, at all. If the capitalist really de-
sired the immunity from taxation for the benefit of the
debtor, would he not, when the immunity is granted, at once
consent to reduce the amount of interest to the extent of the
taxes? But, who has ever heard of an instance, where a
creditor, upon the passage of the Act of 1870, has called his
debtors together, and bid them write down a lesser amount
of interest ? Every person according to the Bill of Rights,
is to be taxed, in proportion to his ability to pay taxes from
the possession of property. The owner of the mortgage
debt has ability to pay taxes by reason of the income of the
debt, and the owner of the property has ability to pay taxes
not only by reason of the possession of the property, bill also
by reason of his possession of the money, borrowed on the
pledge of the property. He cannot, however, be compelled,
to pay any portion of the taxes imposed on the debt, unless
he agrees to do it, and he can agree to pay an equal amount
in addition to the lawful interest, whether the debt is secured
by mortgage or not, and the probability is, that he will be
governed by the prospect of gain from the use of the
money, or by his necessities, in the one case as well as the
other. But it is urged, that unless this extraordinay induce-
ment is granted by the State, to capitalists to lend upon
mortgage, they will decline to do so, bat will lend upon some
other security ; and that the farmer or householder will in
consequence, be cut off from any prospect of borrowing on