Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-03-19
THE TAX ON THE STATE CREDIT.

THE TAX ON THE STATE CREDIT.
We have been much surprised to hear doubts s1
pressed 10 certain quarters, az to the constitutions
power of tho General Assembly to abolish the inge
nious oontrlvanoe of the finance committee Of 1856
which has operated 90 fatally to our State credit.
No grant of power can be more explicit than the
general provision Of the 23d section of the Constu.
ton. touching this subject. The words are
"slsves under that age twelve years) shall not be
subject to taxation and other TAXABLE PROPERTY
may be exempted from taratios By the pote Of maOrt
ty Of tie Uhoie number of members elected to each
house of the General Assembly."
such clause was rendered necessary by the form.
er more general provision Taxation shall be equal
and uniform throughout the Commonwealth" Other.
wise, the Legislature would have welded the power
Of exemption under the general grant OF legislative
authority. The meaning Of the Constitution is 90
plain that he who runs may read. One provision 10
restricted and limited by the other. The power OF
exemption 10 granted without restriction, except that
it can only be exercised by majority Of all the mem.
bsrs of both houses of the General Assembly. What
taxable property shall be exempted from taxation.
ture and 10 to be decided with reference only to the
dictates of q just and e1pedient policy. What such
policy dictates in the present instance, we have al
ready sufficiently demonstrated.
Not only this. The present system OF taxation it.
self defeats the exercise Of another governmental
power, delegated to the General Assembly by the
terms Of the Constitution in section 3st Of which it
10 provided: "The General Assembly shall not con-
tract loans or cause to be Issued certificates of debit
or bonds of the State rrsdeemabls for period great
or than thirty.four years."
Then the General Assembly is empowered to con.
tract loans, 60. redeemabe for period not greater
than thirtyfour years. Thus those who deny the
sttuonsl power Of the Legislature to exempt State
bonds from taxation, oonstrue the Constitution as
contrsdictisg its own provision. Are We to be per-
susded that the Constitution first empowers the Le
gislature to issue State bonds and then obges 1t TO
adopt system Of taxation which renders the issue
of State bonds impossblsl For 80 long as the
State taxes her own credit, just so long will State
bonds stand below par; and so long as State bonds
stand below par just 80 long does the honor Of the
State and the spirit of the Constitution prevent the
issue of single bond. Thus. supposiug that State
bonds may be properly described as "taxabe proper
ty," the letter of the Constitution provides. by the
exemption CLAUSE, that State bonds may be exempt
ed from taxation And the spirit of the Constitution
as exhibited by the combined intention of sections
twenty.three and thirty.ope. provides that Safe
bonds shall be exempted from taxation.
But there Is yet another high moral and legal
ground of Constitutional construction. State bonds
are not "taIable property within the limits Of the
State, and cannot bs so regarded by honest legsla
ton. The Constitution Of Virginia contains no pro
vision whatever extending to the General Assembly
the power of reputation. The tax lmposed on State
bonds nothing less than reputation. The State Of
Virginia has pledged her faith to her creditors that
they shall receive the full amount of six per cent in
tsrsst on the money loaned by such creditors to the
State. And now, the Commonwealth institutes sys.
460 per cent.
We have already laid bare the faliacy of pretend
ing that creditors lend their money subject to the
condition. Let US examine this pretencs again and
more particularly. 1t cannot be assumed that the
creditors who purchased stock anterior to 1852 did 30
under any such understanding, when the proposed
existence Of such tax had never been started. Yet
these creditors are taxed equally with others.
But suppose they we're exempted. How then7 Is
one class of State creditors to be taxed and another
olass to be left untsIed Is this the mode by which
10 pursue the constitutional provision that taxation
shall be equal and uniformf"
Go further. Suppose that there existed but one
class Of State creditors those who have contracted
with the State since the imposition of the taI. II the
Legislature has the power to tax State bonds, it has
the power to raise the tar after 1t is first imposed;
and the purchaser who buys his stock when il yields
him clear interest Of 4.60 per cent may find this
Immediately Afterwards reduced to per cent by le-
gislstive enactment. Such would be the necessary
consequence not Of special aot applicable solely to
State bonds but of general increase Of the rate Of
taxation; and this In view Of the Constitution maxim,
taxation shall be equal and uniform"
Viewed in any phase whatever, the tax Is as nm.
constitutional a. it is unjust and impolitic.
That the originstors of this scheme Of taxation
were not much perpleIed by constitutional difioul.
ties Is made apparent by reference to single fact.-
The present tax bill enables every municipal corpo'
ration to exempt its own stock from taxation, and
throw the whele burden on state bonds. Thus it is
that Richmond city bonds are eatirely exempted
from the corporation tax, while the corporate suthor
ties impose tar Of one per cent. on the bonds Of
the State. This is the beautiful effect of measure
asserted to have been Instituted for the purpose of
rendering taxation "squsl and uniform throughout
the Commonwealth"
There s one easy remedy for this unconstitutional
degradation of the honor and credit of the State
this ipiustica to our own citizens-this trickery
which promises to cheat internal Improvement even
out Of the appropriations which may be voted By the
General Assembly. The tax bill will coon be up for
consideration. A clause of two lines win be cuff.
cient to exempt State bonds from tsxstion and State
credit, dnsnoisl and moral from further disgrace.
Mr.. FAULKNER.-The telsgrsphic agent, sends
us the folloving,-
The teleeraphic report of Mr.. Faulkner's speech
on the volunteer bill, in the House on Tuasday was
necessarily brief, and perhaps fsed to give clear
idea of that Rentlemsns real sentiments on the NOR
mon war. Mr.. F. was commenting on an article IL q
Soutr ern newspaper, which advocated the policy Of
sending to Utah body Of volunteers who would 20
there "nsprsd by religious repugnance to the sbom
nations Of Mormouism," and in this connection he
said -
Sr, too much has been urged in this country in fs
vor of this expedition as movement against the re-
pjon of the people Of Utah. trust there is to be no
religious war stimulated from these halls OF iegsia
ton. We have nothing to do with the religion OF
We have no license in the Constitution to "let loose
the dogs of war;" hunt down any set OF people Tor
their religion no matter how abhorrent 1t may be-
He who goes to Utah, whether as volunteer or regu
lar. with the intent and purpose Of making war upon
that people because of their religion wall, II he shed
blood on such mission, have committed murder in
the eye of the Constitution. There is but one duty
which devolves upon this Government. Il is to
maintain the supremacy Of our authority in that ter
ritory. For all the rest are to trust to the mild
influences of Christianity; We must trust to the beng
nant influences of our glorious form offree
under which, as Jefferson has said, error may be
tolerated With reason left free TO combat il.
No man will 70 further than will In the perior
nance Of the proper duty which devolvee upon U.S.
20 all proper lengths to put down the Mormon rebel
lion. will crush 1t 10 every form, 90 far as It has
ersysd itself In opposition to the authority OF this