Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1864-05-18
The Public Debt.


Our readers are well aware that we have been
by no means chary Of CUR opinion not only that
the present Federal debt would never be paid by
taxation. but that il would ultimately not be
paid at all The observer who has taken the
trouble 20 watch the course of Congress could
have no sort OF trouble IN arriving at this con-
cln-ion aud that the capitalists in Europe have
long since received that impression is manifest
IN the fact while they have taken large Con
federate loan, payable in cotton. they refuse to
take Federal loan. payable in gold. At the
latest advces the Messrs Earrings report the
fye-twenties un-alabe NJ 90 aud the Confederate
loan quick ai IS There had been some lots OF
hve-tventy stock sent hence by large houses
anxious 70 turn u penny by selling them, aud
their anxiety led them 20 overlook facts In re-
gard 10 the loan which their judgment would have
deemed fatal TO any other The consequence
has been that the stocks have been sent back with
cunlempt upon this market
Amid all the show OF taxation got up by Con-
gres. in accordance with the theatrical play ct
Nj Chase. who saws he will depend only upon
taxation while he continues to issue paper and to
dictate such laws rs he we'll knows will defeat
the object aimed ~. M extreme. grievous aud
burdensome tax WAS laid last year on Consumers
Of goods. at a time when u tax OF twenty million
upon real estate was repealed because Mr Chase
and his political satellites were afraid To Tux the
farmers on the eve of an election. The tax
failed. aud 4 new one. equally impotent. has been
concoced, while the taxation OF property is still
lodged.
The new tax. however, embraces the principle
of reputation Thus tax ot FIVE per cent. is
laid upon all income derived from public stocks
over $500. This sounds pretty well. The
amount OF stocks out ia one thousand millions.
viz: eight hundred million gold interest aud two
eight million of income. on which i've per cent.
would give two million four hundred thousand.
but one is taxed unless he has over ST. 900 of
bonds man may own $50 600 of bonds, and
hand SlU, 200 Of il 10 bis wife, and let his ch
dren hold the others nomnaly, and he will
have no tax 10 pay. No names appear the
bond The only tax collected will be from the
banks that hold large amounts individuals i'll
paw nothing But to carry out this humbug;
Congress assumes the principle of Reputation.
Ii assumes, bv tax, TO take away or keep back a
portion OF what il has agreed to pay, Ii il can
keep back five per cent il eau keep back fifty
per cent. or one hundred per cent To do this.
on whatever prete1t, is not TO do what is ex
psessly promised. But il is replied that Congress
reserves the general rightto raise contribution on
the property of the nation This cannot be 30.
because il involves two contradictory things, an
obligation to do and right not to do. An obli
CATION 10 pay certain sum- and right 10 retain
il in the share of a tax. 1t is against the rules
of both law and reason to admit. by implication,
in the construction of contract. principle
which goes in destruction OF it Let take All
example List September Mr. Ch1se came for
ward on his knees. begging somebody T. lend
him monev to pay the troops TO the first of Sep
tember Now Congress has right. by uLi-
form tax. to exact the amount required from all
citizens alike
Mr. Aston; for instance, held ten millions Of
real estate and other parties million Of money.
He asked the latter TO lend him the money.
promising somenly TO pay them hack the princ
pal with six per rent interest. Now. what does
Congress do? IL keeps back by a tax five per
cent Of the amount il promised 10 pay those
lenders, and does not tax Mr. As'or cent? lift
keeps back i've per cent. il can very clearly keep
back the whole, and must do so il il refuses to
tax real estate. because all the fonung property
Of the country will be absorbed into the Eve
thousand million, and there will be nothing else
TO tax
Congress having inaugurated this step toward
reputation and tie people admitted il, the rest ia
easy; IN increase of the tax only is required to
snnhste the debt Ii is not therefore matter
of surprise that foreign capitalists warned in
season y News.