railroads when they had neither, but should help the one offering them the more practicable and the earlier connections; that the Northern Pacific was that one; that, moreover, its interests were those of the North, as Oregon's were; that while Oregon needed the Union Pacific, too, it should not play the uncertainty of that route against the certainty offered by the Northern line. Subsequent events sustained this view; the Northern Pacific was opened to Portland in 1883, and the rival Union Pacific the next year.
MORTGAGE TAX
Taxation of credits was an active issue in Oregon during the decade 1883-93. During most of the period the state was struggling with a law taxing mortgages. This law (enacted 1882; repealed 1893) attempted to tax land mortgages at the same rate as the land, in their proportions of value. It had disastrous effect on credit, made high rates of interest, withheld capital from the state and imposed undue taxes on debt-free land owners. These evils were foretold by Mr. Scott before enactment of the law and he finally saw public sentiment change to hostility toward such tax. Of similar sort was the popular fallacy after the Civil War, of demanding taxation of government bonds. Mr. Scott combatted this idea frequently.
HIGH COST LIVING
It also fell to his lot, in the last five years of his life, to combat popular fallacies of "high prices." "Cost of living" greatly increased, following high tide of prosperity in 1900-05. Among the causes ascribed was large gold production. In Mr. Scott's view, the chief cause was enlargement or excess of credit; with credit reformed, after the inflation period, prices would fall. A second influence making high prices, he said, was extravagance in government, following socialistic demands for wider governmental activities. A third was shortage of food-production, due to overplus of population outside such duties, chiefly in cities. "Let those who complain about high
