Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1865-09-08
THE "POUND on FLEsB.'

THE SPOUND OF FLESH"
We noticed yesterday in one Of our National
Banks large poster, Issued by Governmen'
authority advertising the Seven I hirties. or set
ting forth the advantages for investment IN this
form OF public indebtedness In display lines We
read the following: = The notes cant oe taxed
and the interest can't be taxed By State counties
Or cities: or by Government When income V not
over $500 This exemption from TAXATION makes
the Investment equal 10 ten per cent per snnum.
So then the Government Is paying ten per cent.
for money-say seven per cent for the use Of
the money and e1enpting the capital thus
invested from three per cent TAXATION 10 which
- would otherwise be subject And bs
gourpsl, vith the Republican press generally,
defends and justihes the financial policy which
exenpts near three thousand millions Of property
RON local taxation. and places the whole bur
Gen upon the balance Of the property. II il 10
said this policy il unjust. unfair. unequal. then
these pretended sticklers for the preservation OF
the national faith set up the howl OF "repudia-
ton" They say. no. no. the wealth Of the coun-
try invested 10 Government bonds must not pay
its equal portion for the protection Of person and
property through local govern ments. for this
would be violation Of national faith" The
soldier who has fought the battles of his eoun-
ny ing life and death, mus: psy this duty 70
,he Government upon the little means be has in
vested to procure livelihood. but the money
leader escapes the burden Of local taxation by
investing HE wealth in Govesr.=ep, securities
Ia .of6 ~. 49, -
he i met with argument that it is in the bond
and its fulhllment. or the pound Of flesh is ex-
acted.
The Journal says: THE Constitution declare:
that DO State shall pass any law impliring the
obligation OF contracts" Has Congress the
right TO do IN that regard what the States ar,
forbidden IL has set the example of impairing
the obligation Of contracts by substituting de
precis:ed currency. which during the past fou
years has often not been worth one-thrd Of it
face. and seldom more than two thirds. in tn
fulfllment Of contracts which were based upor
Q gold and silver currency When this fact i
considered, it becomes absurd to talk about tn
sanctity Of contracts. the violation OF nationa
faith in connection With Governments bonds.
The Journal insists upon the exemption OF thu
bonds from local taxation, for the reasons which
10 thus states;
Where Congress has provided in the Law
authorizing the borrowing OF money for the us'
Of the United States that the bonds issued TO
the money 40 borrowed shall not be subject {,
taxation by the States that stipulation is a con
tract between the United States and It's creditors
which no State can violate. with or without tn,
consent or Congress.
There Is no such stipulation in the contract
IL is not in the constitution it is not in the de
eisions OF the Supreme Court, il is not in the &C
Of Congress. The Government, securities o
bonds cannot be taxed "by and Under Stat
authority" for local purposes IL is not intende,
by this inhibition that Government bonds shall
no, be subject to the same burden for the sup
port of local governments a. other property
The fair construction is, that the States shall no
have the power of taxing these bonds for loca
purposes without the assent Of Congress, for !h
reason that IL they had the unre-tric,ed power
they might injuTe the credit OF the Government
by unfriendly legislation IL is foreign to tn.
theory of our Government, and TO the spiri
Of or institutions. to build up priv
ieged money aristocracy at the cost Of thu
other interests OF the country. as would be the re
suit of ersmpting Government bonds from ioca
taxation equal with other property. Surely such
Injustice was not contemplated by the trainers o
the CONSTITUTION. nor can il be sustained Con-
gress has justified population by mpairng the
obligation of contracts. and if the exemption oil
Government bonds from equal taxation Is insis
ted upon. its example may become contagious.