64 BOARD OF AGRICULTURE. 



From the limited examination it has been my privilege to give 

 to this part of the general subject, the conviction impresses itself 

 more and more fully upon my mind, that if the present rate of one 

 per cent, on all deposits, or one more nearly approximating the 

 average rate of taxation in the State can he maintained, it would 

 not be advisable to change the present method, — but rather than 

 admit any abatement of the present tax, it would be better to open 

 the deposits, either with or without exemption, to local assess- 

 ment. 



Discount for prompt payment. — In many towns the custom pre- 

 vails of discounting ten or more per cent, for the payment of 

 taxes on or before a specified date — generally the first of August. 

 The advantages claimed are, low compensation for the collector 

 and a large percentage of the tax in the treasury at the specified 

 time ; and it cannot be denied that these are real advantages pro- 

 vided they have not been too expensively purchased. On the 

 other hand, it is worthy of note that " the allowance of the dis- 

 count works inequality between the tax-payers who can avail 

 themselves of its provisions and those who cannot." Where a 

 discount is to be allowed, an increased assessment must be made, 

 and the unfortunate feature of the case is the fact that those who 

 are least able have proportionally the larger burden to bear. It 

 is in the nature of such a discount that the wealthy can avail 

 themselves of it while the poor cannot. 



On the ground of economy the practice cannot be defended, 

 since a discount of ten per cent, for payment within four months 

 (from April 1st to August 1st) is virtually the payment of interest 

 at thirty per cent, per annum. Money can be hired by towns at 

 a lower rate of interest. Moreover it is a questionable policy, 

 that of bestowing a money reward for the discharge of a duty. 

 The demand upon the tax-payer is a just demand for a certain 

 sum known by him, and the " power of the State is behind the 

 tax-gatherer" to insure its collection, hence the practice of dis- 

 counting is unnecessary. 



If a charge of twelve per cent, interest were made after the 

 specified date the conditions of the case would be entirely changed, 

 with equally good prospect of bringing a large portion of the tax 

 at the required time into the treasury. Those who would avail 

 themselves of the discount under that plan would not incur the 

 payment of a high rate of interest, and those who should be 



