The Indianapolis daily herald. [volume] (Indianapolis, Ind.) 1865-1868, 1865-12-02


Read the following srtioIes
wATcnIaN, WHAT or THE NIGHT
Lot II Government bonds in the pockets Of
the rich, drawing Interest, and exempt from
taxation.
The Dssn that Iabors and earns his bread by
the sweat Of his brow.
The farmer who tills the soil
The mechanic who works mp heavily taxed
material.
Mr.. Poorman. how much are you taxed on
your little $1,000 FARM
Thirty dollars"
Mr.. hickman, how much DO you pay on
your $4,000 bOndsT'
.. Not one cent. sirl Mr. jay Cooke tells me
that national debt il national blessing. and
| md u i, sir. Here are $4,000 in personal
property that don't cost me cent, and ke-
sides, sir. am drawing Fix per cent in gold,
equaling nearly nine hundred dollars in ma
tional currency. Now. If had that 10000 in
farm. | would have 10 pay thereon about
$500, but draw an interest Of ss'0O-add this
500 10 500, and | have the advantage oyerthe
landholder Of Sl,2DO in a single year,H
." i that the way IL works, Mr.. RichmanT-
OF course, sir. IL sa national blessing 20
me, and no mistake. 20 IL has been to Mr.. Jay
Cooke; who made 81 10000 in simply selling
bonds
But. Mr. Rictman. must not this national
debt and the interest thereon De paidTr
"Of course, sir, Of course, sir. this national
blessing debt must be paid, and no mistake"
" Then, sir, who j. 10 pay this debt, and the
immense interest that i every year aceumulat-
ing-whO II % pay YOU 300 q YEAR, Do YOU
not help 10 pay this debt and INTEREST,"
L" Why, have all my property in bonds
am exempt from taxatiOn-the assessors have
no business with me. am iiye-twenty man,
sir. ahem, sir.'
some source, and a. YOU are exempt, and hun
dreds and thousands like YOU are also ex-
empted, who is 10 pay this immense debt and
this interest, which you claim as national
blcssingT'
why, sir, il must be raised from the taxa
/ bic property Of the country: and the men who
own land, goods and chattels mechanics and
! the laboring classes must foot the bill. But.
what j. that 10 me. siry ! enjoy the national
/ blessing do | have some coupons now due
/ in my pocket, which must go 10 our National
/ Bank aud draw the gold on.'
But, my friend, DO YOU think that is honest
and fair:r
:" Yes, Of course. every man has the privi-
/ lege-ahcm.'
:. But will itlasti''
Last. what are you talking about, Has
/ SOME fool Of c0ppeThead been sticking mis-
chief in your head! Last. Of course it will.
/ II is foolish to talk about taxing the bonds.
/ We havct the political power now Well make
/ the Democrats and all the poor white trash paw
/ the taxes, and the interest on our bonds. If
/ there i any Republican so unfortunate as 10
own land, or to labor for his living, he must
suffer the consequences. The bondboldeTs
must have their interest. 1t weuld be "A breach
Of LOYALTY 10 make US assist in bearing the bur-
dens Of the war debt and the Government.
Very unlOyall 1 must buy n few more bOndss
20 that / can live entirely on my annual in
come Of interest, TO be paid to me by my
neighbors, farmers, mechanics and laborers,
who are not enjoying the national blessing
SHALL FOREIGN CAPITAL BE EXEMPT FROM
/ A decision has been rendered in the United
/ states Circuit Court, in session nj Baltimore,
| Chief Justice Chase and Judge Giles on the
bench, which is Of the greatest possible interest
/ TO tax-payes in the United States. We pnb-
/ fish elsewhere a statement Of the ease. and the
main points in the decision Of the court. rs re-
ported in the Baltimore Commercial. The
/ internal Revenue act, section l22, subjects
- all railroad, canal, turnpike, canal navaga-
/ ton or sackwater companies 10 a duty Of five
per cent. on all interests and dividends de-
+ rived from their bonds or shares. and author
lies them 10 withhold that amount from bond
holders and share holders, and make payment
/ 10 Government discharge 10 that extent from
payment 10 them" Hitherto, this provision
/ Of the law has been held 10 apply 10 citizens
/ and aliens. residents aud non-residents.
alike. y British subject. residing in
. Ireland. brought the suit in question,
to compel the Northern Central Railroad Com
/ panv 10 pay over 10 him an amount withheld
under the foregoing clause in the revenue law.
4 The Court ruled that, taken independently,
this section Of the law would impose q tax
1 upon foreign equally with American stock
+. holders; but that the various sections were TO
be- construed collectively. and. as other sections
. We're made 10 apply special To citizens of and
/ residents in the United States, the inference
was that only these classes were contemplated
by the trainers Of the statute. We DO not
claim the possession Of sufficient legal lore to
| relic the ruling OF the court; but we are
quite sure the American people will protest
against eXempting from taxation the immense
/ foreign capital sent hither for investment. y
commun-sensc view of the subject had
led the masses 10 believe that the
clause requiring corporations 10 with
hold the tax from bondholders and pay il
directly to the Government, was inserted solely
with view To reach foreign bond and share
holders. There would be no necessity for such
provision were all the parties amenable TO
taxation residents Of the United states. for
they could then be reached by the ordinary
mode OF collecting the revenue; but by no
means could foreigners with American invest
ments be reached. The court, however, ruled
otherwise, and held that this section-seeming
ly Of n special and exceptional character
should be interpreted in the light of the pro-
sions of other sections.
There is no valid reason why foreign capital
invested i'm American corporations should be
| exempted from taxation, any more than SINH
lar investments Of American capital. Some of
| our railroads are largely owned by foreign
| capitalists. ~ il the ease with the Atlantic and
Great Western, the New FORK and Erie and the
/ Illinois Central. There i no reason why the
members Of such corporations receiving, ~ they
do, the protection Of the government, and reap
Ing all the advantages Of our laws should enjoy
an exemption from Federal taxation. whilst
other corporations Of a similar character COM
posed Of Americans are taxed to the full extent
of the law. Some one has Numbered. Ii the
court i right. then j. Congress wrong. Ii the
trainers Of the statutes pcTpctrated such stu
pid hundcr. IL l. To be- hoped the law will be
. speedily amended. should the verdict of the
/ Circuit Court he affirmed by the supreme
T Court. then must the law he construed in the
light Of this decision. in which ease the only
/ remedy would be found in amendment Of
I the act. In no event can cur government ar
ford % discriminate in favor If foreign capital
lists TO the dctrimcnt Of our own taxpayers.
and we hope the matter will receive the early