Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1865-09-07
RUTLAND HERALD.
TUESDAY, SEPTEMBER ., 1865,
Democratic View of Taxing U. =.
bonds,

10 mlS- &c bEaL lne eullOT U. VIC huV-
land Cogrify IS out of the so-call-d Dem
ocratio party, as he is clamoring for
what the New York Urorld, the leading
organ Of that party, says the Democrats
do not ask He certainly IS not in the
Union party. Where is he ? When last
heard from ne was stumping the town
in his own behalf as candidate Tor Town
Representative, on an issue that was de-
c!ded against him by the United States
Supreme Court years ago, and is there
fore no issue at all,
We have already quoted from the New
York WoyA on this subject We make
another extract below from recent
number Of that paper, and commend 1t
to the attention Of the Courier. Speak
ing In reference to the proposal that
Congress should repeal that clause of
the Loan acts which exempts the bonds
now sold and outstanding, from state
and local taxation, the World says
This is something which the Demo-
cratic party does not ask, and whicb
tVoa!M anoaHt % nothing if adopted. The
Democratic party advocates now, as it
has always advocated, honesty, fidelity
to engagements, and the sanctity OF
public faith. It demands nothing in re-
!ation to the Public Debt but such equal
.zatlon Of the public burdens as will en-
able the people to pay it, withou, a felt
sense Of Injustice. The Government has
engaged its honor for the exemption Of
It's bonds from State and municipal tax
alton, and It cannot, 3ojthoat diSgracC, reDad5-
ate us eoHtract.
"A repeal OF that part o: the loan Jaw
might unsettle the public confidence;
but In other respects it would amount
TO nothing. That clause Of the law is,
as regards enacting force, mere surplus
age. 1t merely serves to advertise an
advantageous portion Of the loan. The
Federal stocks would be just as much
exempt from State taxation without
that clause as they are with it. In the
case OF Weston agt. The City Council Of
Charleston Peters, 463), it was decid-
ed, by the Supreme Court Of the United
States, that no tax can be laid on Fede-
raj stocks by State authorit, without
violation o. the Constitution. Chief
Justice Marshall who delivered the
opinion o. the Court said
" The American people have conferred
the power o. borrowing money on their
Government, and, by making tia: Gov
ernmon- supreme, have shielded its
action, in the exercise Of this power
from the action Of the local govern
menGs.
The right to tax the contract 20 any
extent, when made, must operate upon
the power TO borrow before it is eXer-
cised, and have sensible influence on
the contract. The extent OF this infu-
ence depends on the will Of q district
government To any extent, however
inconsideraDle, it is burden on the op-
erations o. government. It may be car
RED to an extent which shall arrest them
entirely.
The TAX on Government stock is
thought by the Court to be a tax on the
contract, a tax on the power TO borrow
money on the credit Of the United States,
and conseq uentlv to be repugnanC 10 the
Constitution.
That is what the leading Democratic
organ says.
The bonds in question Were expressly
exempted from state and local taxation,
because that exemption was deemed
necessary at the time in order TO raise
the FUNDS requisite to save the life OF the
nation-a consideration which o. course
was paramount to all others. These
outstanding bonds will soon be matur-
ing in large sums, and it will be neces-
sary TO issue others in their places. The
national crisis, which demanded the eX-
emption Of the maturing bonds having
passed. Congress may expressly author
ize The sale o. the new issues subject to
local taxation at the same rate as other
property. That seems to be all that can
be done, 3u: Z anything may De sooner
accomplished legally and constitution
ally, no persons will be more in favor Of
it than Republicans. But the plainly
Illegal and unconstitutional demands of
such sheets rs the Courier, which the
Worm calls "inCendiary repudiators,
can only result in unsettling public con-
fdepoe, embarrassing the national imam
ces and dishonoring the public faith and
credit, without accomplishing any good
10 any one. The people Of this vicinity
we believe, have had experience enough
Of the Courier by this time, to know that
it never does anything for good, patri-
otto or disinterested purposes; that it
never advocates anything except for
purely and individually selfish ends. 1t
is Of Just such sheets that the American
people should everywhere and at all
times especially beware.
TIE PUBLIC DEBr-The official state
ment Of the public debt, as it stood
August 81. IS as follows Amount of