Gallipolis journal. [volume] (Gallipolis, Ohio) 1837-1919, 1865-12-14
H The following extract frol


the late report of the Secretary ot
the Treasury on the question of tax
ing U. s. bonds, is so clear and ex-
plicit, that every honest man cannot
fail to be convinced Of its soundness
and correct policy. OF course bigo-
ted demagogues and copperheads
who prefer working upon the credul-
tiles and fears Of the people, in order
to gain party power, will not see the
propriety Of Mr.. McCulloch's views.
The Democratic papers of Ohio, that
80 lately teemed with articles on
equality of taxation will be care
full to exclude from their columns all
such articles as this extract. They
dare not submit such candid, fair,
and impartial statements of facts to
the judgment of their deluded read
ers- If they would, we should find
hereafter no such pitiful whining
about "bon6men" and "bond- hold
ers." We commend this article to
their attention. Mr.. McCulloch says:
In view of the fact that the exemp-
ton of Government securities from
State taxation is, by many persons,
considered a an unjust discrimination
in their favor, efforts may be made
to induce Congress to legislate upon
the subject of their taxation. OF
course, the existing exemption from
State and municipal taxation OF
bonds and securities now outstand-
ing win be scrupulously regarded.
That exemption is part of the con-
tract under which the securities have
been issued and the money loaned
thereon to the Government. and il
would not only be unconstitutional,
but a breach OF the public faith OF
the nation, to disregard it. Itwould
also, in the judgment of the Secreta-
ry, be unwise for Congress to grant
to the States the power. which they
will not possess unless conferred by
express Congressional enactment, o.
imposing local taxes upon securities
of the United States which may be
hereafter issued. Such taxation, in
any form, would result in serious, il
not fatal, embarrassment to the Gov
ernment, and, instead OF relieving
would eventually injure the grea
mass of the people, who are to heal
their full proportion of the burder
of the public debt. This is a sub
ject in relation to which there should
be no difference of opinion. Every
tax payer is personally interested il
having the public debt placed a
home, and at low rate of interest
which cannot. be done if the public
securities are to be subject to loca
taxation Taxes vary largely in diff
ferent States, and in different coun
ties and cities of the same State, anC
are every where so high, that, unless
protected against them, the bond
J into which the present debt must b.
funded cannot be distributed anon.
the people, except in some favore'
localities, unless they bear a rate o
interest so high as to make the deb
severely oppressive, and to rende
the prospect of its extinguishmen
well nigh hopeless. Exempted iron
local taxation, the debt can, it is ex
pectsd, be funded at an early day q
five per cent; if local taxation is al
lowed, no considerable portion O
the debt which falls due within tn
: next four years can be funded q
home at less than eight per cent
5 The tax payers of the United State
!, cannot afford TO have their burden
; thus increased. II is also eviden
that the relief which local taxpayer
o would ortain from Government tax
r alton, as the result of low rate c
n interest on the national securitie
would, at least, be as great as the II
fcrease of local taxes to which the
would be subjected on account of tn
exemption of Government secur
ties; while if those securities shoul
lbear q rate of interest sufficient
e secure their sale when subjected.
! ! local taxes, few, if. any of then
\ would long remain where those take
k could reach them. They would /
e rapidly transferred to other cour
e tries, into the hands of foreign cap
2 talists, and thus at last the burdenj (
d paying high rate of interest woul
> be left upon the people of this coul
try without compensation or allev