TABLE D.

1 The figures at the right of decimal point indicate fractions of one per cent.

TABLE E.

Showing the Assessment of Moneys and Credits per Capita for the years 1899–1902, in the several groups of Assessment Districts noted in the margin, based on population as per census of 1900.

It will be seen upon examination of Table A. that there has been a marked increase in the total assessment of credits1 since 1888. It appears also that such increase has been gradual, though somewhat irregular, until the year 1902. By referring to the last two columns of ratios in Table A. it may be observed that in recent years prior to 1902 the increase in assessments of credits has not been materially greater, proportionally, than the increase in assessment of other property. In 1902, however, there has been, for the whole state, not only a very marked increase over former years in the total assessment of credits,

1 For reasons stated on page 93 the statistics of moneys and credits are treated as representing credits only.

but also a very considerable increase in the proportion of the total assessment of credits to the total assessment of other property.

In 1902 the valuation of property by local assessing officers was in general fixed upon a 'basis very much nearer to true values than in former years, which was accomplished, mainly by the work of the county supervisors of assessments, whose administration began in 1902, as explained elsewhere in this report. This accounts very largely for the great increase in 1902 over previous years in the total assessed valuation of property other than credits. But the increase in the assessment of credits in 1902 is not due to an advance in the basis of valuation, to any great extent, but chiefly to the listing and assessment of large amounts of credits which had been wholly omitted from assessment in former years. The assessment of other property at full value or at figures closely approximating full value, affording a corresponding reduction in the tax rate, was presumably of assistance to assessors in obtaining from property owners statements of credits which otherwise would have been withheld. But by far the greater portion of the increase in the assessment of credits in 1902 was accomplished by greater diligence and effort on the part of assessing officers in discovering credits liable to taxation which had not been assessed in former years. In many counties the supervisor of assessments made examination of the records of real estate mortgages in his county and furnished information, as to each unsatisfied mortgage there found, to the assessor of the district in which the mortgagee resided, if in his county; otherwise to the supervisor of the county in which the mortgagee resided, if a resident of the state; who in turn furnished the same to the proper assessor in his county. Other public records were examined to some extent for evidences of existing debts and the information obtained was distributed in like manner. This was not done in every county and the work was performed more diligently and thoroughly in some counties than in others, but it was chiefly by means of this work that the greater portion of the increase in the total assessment of credits was accomplished in 1902.

Referring again to Table A. it may be noticed that the total

assessment of credits in 1902 is more than double that of the previous year, which in turn is more than double the average annual assessment of credits in the twelve years preceding 1901. And the proportion of the total assessment of credits to the total assessment of all property in 1902 is 5.33 per cent. as against 3.29 per cent., the highest ratio in any preceding year. The marked increase in the assessment of credits in the last three years, particularly that in 1902, may seem, at first thought, to give some support to the contention that it is practicable to secure the full assessment of all credits which under existing laws are subject to taxation. It should be borne in mind, however, that there were conditions existing in 1902 extremely favorable to securing a large assessment of credits which cannot be expected to continue if the effort to tax credits be kept up. In many parts of the state there had been little or no effort to secure the assessment of credits prior to 1902. In consequence there was little effort to conceal them from assessing officers. In many localities mortgages were placed on record without any attempt to conceal the name or residence of the actual owner and in the expectation, from past experience, that no attempt would be made to examine the records or otherwise discover credits for purposes of taxation. In brief there had been little attempt at concealment or evasion except in a few localities where previously there had been some effort to discover taxable credits. Holders of credits were taken unaware in 1902 by the systematic and thorough manner in which credits evidenced by public record were ascertained and assessed in that year. It can hardly be expected that many will be again. caught napping, in the near future at least; and it would seem fairly safe to conclude that unless more effective laws are provided for the discovery and listing of credits and to prevent concealment and evasion, the total assessment of credits will be less in future than in 1902.

The amount assessed in 1902 is believed to be but a small portion, or at least not a very large portion of the total amount of credits legally subject to taxation. The manner in which the increase in 1902 was secured, already mentioned, indicates plainly, that such increase was made up almost wholly of credits

secured by recorded mortgages of real estate. And it is not doubted that most of the credits assessed in former years were of the same kind. No statistics are available, or obtainable, to determine the total amount of credits legally liable to assessment. It would not be difficult to ascertain approximately the total amount of credits resulting from bank deposits in the state at any given point of time, though virtually impossible to determine how much of these are held by residents of other states. Credits arising from deposits by residents of this state in banks located in other states are incapable of ascertainment. The total amount of real estate mortgages not satisfied of record in this state might be ascertained approximately, though not without great expense, but when ascertained it would be virtually impossible for the gatherer of statistics to ascertain what portion is actually held by residents of the state, and of such portion what part is actually owned by banks, trust companies, insurance companies and other corporations whose credits are not subject to assessment. And there seems to be absolutely no way in which the statistician may ascertain the vast quantity of credits arising from loans and the infinity of business transactions the evidences of which are not made public in any way, to say nothing of the sorting up of these between those holders whose credits are and those whose credits are not subject to assessment under existing laws. But if all this were practicable there would remain the further statistical problem of determining the total amount of "bona fide unconditional debts owing" by the holders of taxable credits, which they are entitled to deduct from any and all kinds of credits otherwise liable to taxation. When it is also considered that the total volume of all credits must vary greatly, as between periods of industrial, commercial and speculative activity and periods of business depression, the futility of attempting to obtain anything like reliable statistics of credits will be appreciated.

It is reasonably certain, however, that the total amount of credits legally liable to assessment under present day business conditions, after deducting bona fide debts owing by the holders thereof, is a very large sum and it is not doubted that it exceeds many times the seemingly large sum assessed in 1902. When