Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1865-09-02
ORR NATIONAL DEBT.

The Nes York Tribune. in . leDg article
6lled with partisan misrepresentation. 10 rsgsrs
to the position Of the opponents Of the party N
power. thus comments upon the resolution OF
the Ohio Democratic State Convention which
declares I'll 70 be the immediate duty OF Con
sres. and The State Legislature TO use al the
legal and constitutional power they possess to
subject money invested in Governmsnt securities
70 burden OF TAXATION equal to that imposed
upon other property for Federal. State and mu
nicipal purposes Says the Tribune:
l"Lst n look into this 4 minute:
"Tae nited States. In pressing need Of money
"a vast suns, offered certain inducenep. 70
those who would supply it-nsmey |. A
specified rate Of interest 2. Exemption from
local taxation; 3 Repay ment at specified day
Each Of these Is integral part Of the bargain
made VITA every holder Of Government bond
the second equally With the first aud third
To subject those bonds 10 taxation would be a.
fagrant reputation as 10 refuse 10 pay the int
rest or tie principal he who would tax them,
in plain defiance Of the contract. would refuse to
pay them IL he thought be could succeed IN DO
ingso.
III you think the bondholders have too good
thing, remember that you might have been OF
them had you chosen-nay still be II yeu will
Walk up. gentlemen There's no fayoritism-
10 monoplyl"
What il the contract with the bondholderst
Does it sIemp, the bonds from local taxstion1
The Act of Congress Of February 18th. 1862.
reads as follows:
"All stocks, bonds aud other securities OF the
United States, held by individual corporations
or associations, within the United States. shall
be exempt from taxation by and under State
authority"
Thia il the contract Does IL mean any more
than Congress reserves the right of taxing these
securities or fixing the rate of taIation7 These
bonds bear high rate OF interest all that the
use of money is worth in safe and permanent
investment CaR i. be supposed for moment
that /, was the intention Of Congress. or tina,
the decisions Of the Supreme Court upon the
power Of the States To TAI Government bonds
for local purposes. be construed to mean.
that they should not bear their equal portion Of
the burdens for the support Of State. county
and municipal governmental Certainly ii
cannot be con.ended that either intended TO
maintain a propositions policy 20 unjust. IL
ia no reputation To make the wealth repre-
scented by these bonds pay the same taxes, the
same contribution that other capital pro-
perty has TO pay for the support Of the Govern
ments which protect al alike The exemption
of three thousand millions OF dollars from local
taxation and imposing the ent burden of sup
porting local governments upon other property is
20 grossly and obviously unjust. to need no
argument to demonstrate IT, And the miserable
subterfuge resOrted to by the Tribune does not
relieve the dilemma IL makes no difference in
whose hand. the bonds may be- they none the
less property, whether one person or another
holds them. The very fact that these bonds are
safe securities, at high rate of interest. is al
argument in favor OF placing them upon the tar
list subject to the same ratio Of taxation other
capital. While Congress provides that they "shall
be exempt from taxation, by and under State au-
thority," TO prevent the States from laying upon
them greater burdens than other property, to the
injury of the credit Of the Government, il Ger
tainly possesses the power to authorize the State,
to tax the bonds the same as other property But
il any strict constructionist should deny the
power OF Congress to authorize this taxation by
the States, 10 must be conceded that Congress
can tar the bonds to So amount equal to the To-
cal taxation OF other property for the general
purposes OF the Government. thus relieving the
property subject to local taxation to that extent.
The people will not submit 70 the unequal taxa
ton insisted upon by the Tribune and the repre-
sentatives of the party in pOwer-the establish
ment of privileged money aristocraoy based
upon the public debt-and the holders OF the
bonds should not demsnd exemption from their
fair and equal portion OF the burden of maintain
ing local Governments. if they properly regard
their own interests.