Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1862-02-05
Mills Letter-Railroad Iax-Banks "A Crash

Madison, Jan. 81, 1861.
Mr.. Gown As you want an OCCASION
al letter, though, determined not towrite
more, perhaps / cannot better use my sta
tionery than 10 write letter for the Her
aid. We have bill before us for taxing
the railroads three or four per cent. on their
gross earnings, formerly they paid one per
cent. The Supreme Court decided /
think very foolishly, and certainly very dis
astrously for the State, that railroads can
not be taxed On their gross earnings. The
Legislature Of 1851, whipt the devil round
the stump; they require the roads . get
license for which each load must pay IL
cense fee eors.i to one per cent on its gross
earnipcs, or forfeit its charter. Just think
of licensing a man to run wagon on his
own land, and you have the theory of this
tax. TIE roads will pay it rather than be
taxed In the several towns and counties
and school districts through which they
pass; this would win tue roads, at the
same time, the tax would be clutched to a
great extent by the school districts and
other quasi corporations, through which
the roads might pass. This would be
famously unequal, and give intolerable adj
vantages to particular districts. Boscobel
school district would get enough Of tax off
the depot grounds, DC, to build State
university. This road Will compel the roads
to pay tax for license, although the IL
cense itself has no legality. Some of the
roads paid in their one per cent. for the
present year before the Legislature met
and cot their Iicens 5. The Senate got into
a fever surprising the other roads might
pay for and get license, at one per cent,
and then the license would be inevocable.
However, on a slight examination, the law
appears to be otherwise; a license is not a
contract, aud may be revoked by the State
the premium being returned. Ii the road
does not pay the higher license, its charter
is forfeited under the law Of l36l-that is,
If that law has any validity.
Again, about the banks. These institu-
tons require or ask for an extension of
time, in case Of legal proceedings against
them on their refusal to redeem in specie.
The banks bought our $l,20O,00G war
bonds as basis for banking. In case of
inability to redeem, these bonds must be
broa2ht into market and sold for what
they viii bring; that is. not half their face,
perhaps nothing. The war bond contract
with the banks was in this wise. / give
you my note for 500 payable in twenty
years, minus interest. How much will
you give me for it, cash down? Say sew
enty dollars. This was about the transac-
tion applied to above a million of dollars
of Wisconsin bonds, sold by the State TO
the banks, for which the former received
say 10 cents on thedollar, cash. The New
York banks have suspended; these corpor-
ations would buy up all our paper, exhaust
the last dime in the banks, and reach the
bonds of tie State, can break up the entire
foundation of our credit. The United
States does not redeem. 1t IS no longer q
question Of the banks, but "A question OF
the State. Shall this State alone exhaust
| itself of coin United States demand notes
and eastern exchange and bills would find
their way into the hands of farmers, and
our bank money would reach eastern cor
porations. which would demand the coin At
our bank counters.
What shall be done to sustain the credit
of our war bonds! The ..wnks are wiling
to redeem every dollar Of their currency ia
these bonds; but what ara the bonds
worth Here i the difficulty. The banks
are also willing to redeem ia eastern ex-
change and bills. Time will Be allowed
them, perhaps, but | cannot see how uni
versal crash can he avoided, nor you can
not stand from under-~for the crash Ia.
wolves the ruin Of State, national aud bank
credit altogether, II must cone. Wel
must bear il. J. T, Nuts.