Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1865-08-07
DAILY SENTINEL.


The New York Tribune opposes the taxing OF
United State. Bonds. for State and municipal
purposes. a. breach Of faith. and II permitted il
regards IL as In effect Reputation and persdy
IL argues that the Government. during the dark
days Of he rebellion could not have obtained
loans for the prosecution Of the war without the
eriraordinary inducement Of eremp.ing them /
from local taI.tion. Il thus puts the case.
ITO induce such large. continuous inv estments
10 the funds OF an inperiled Nation. certain in
ducements we're offered. Among these vas eI
smption from taxes. The Government takes q
small slice out Of oil incomes derived from To-
tersst on is bonds. but IL stipustes that this s
sll--thst no State or Local authority shall exact
farthing The right TO do this has been affirmed
By the Supreme Court after a full hearing, |
Chief Justice Marshal pronouncirg the decision. |
And. fthe Government had righ, to borrow a.
all. Il surely has right to prescribe the terms
on which its loans shall be issued.
I'VE are surprised that the Legislatures OF
loyal States like Con neciicut and New Hump
shire should attempt TO tar income from national
debt, In defiance II an express stipulation of the
Government. They should have left this poor
business 10 the Legislatures OF New Jersey and
Delaware neither Of which. We believe. has
attempted IL The attempt cannot succeed. for
10 10 reputation and perhdy. The Government
has the power and the will TO keep its faith and
any assault upon IL only weakens the National
credit, thereby increasing the public burdens Jet
doing good 20 one Let US have no more of
this IL is already established. We believe, that
the use Of Government funds, say a. q basis OF
bank circulation, can be tlIed That ought TO
suffice"
The var !, over. aud Why should capitalists
tie rich men of the Naticu-be relieved from the
burdens ii has occasioned by investing their |
means in Government bonds st large rates of
INTEREST," The great body Of the people, whose
labor pays the taxes. cannot appreciate the pro-
priety or justice Of eIemptng from taxation in
comes derived from any source. cotempo-
rsry thus exhibits the injustice of not taxing
United States bonds: Suppose two mechanics to
earn each exactly 5000 year. and to live each
upon 5000 The one puts his surplus $500 of
property into U. s bond. and the other puts
bis surplus 500 into house and lot or some
little industrial business The formers savings,
drawing him fat interest. are. under the legis-
lation Of a radical Congress. exempted from
all State and local taxes. while those the lat
ter may be ground down. and the quick Of the
principal reached to satisfy the public indebted
ness in its various shapes, part of the taxation
levied going TO pay the interest upon his brother
mechanics Government investment
The question whether the public Indebtedness
is to be saddled solely on the laboring. the com
mercial. and the agricultural interests. while
moneyed men aud banking corporations are to
have their property invested in United States
bonds. upon which they are drawing an exorbit
ant interest. exempted. il one that no public
journal can dispose of by following the tactics of
the pettlogger. Ii is not case in Justices
Court. but one before the people, and one which
the independent press Of the country will SEQ
properly presented.
But the Tribune. in the interest OF the class
which Is attempting to build up moneyed arts
tocracy to be exempt from the burdens of the
Government while receiving all the rights and
benefits il confers says. THE Government has
the power and will to keep its faith" But who
constitute the Government. and from whence
does il derive It's powerr The Tribune holds
out the idea that the Government Is distinct
from the people, sort Of overshsdowing power
over which they have no control or direction.
IL Is threatened that this power, by whatever
name il may he called. has the will and intends to
enforce the injustice OF relieving portion Of the
capital Of the country from its share of the public
blrdens. Suppose the people should determine
that there must he equal taxation or no taxation.
We think 1.-THE Government" will obey its behests
or else representatives would be placed IN power
who will. This sill be the remedy when the
people ascertain the great injustice which 10 i'm
posed upon them and which Is illustrated in the
comparison instituted above But the Tribune
is troubled because the Legislatures Of loyal
States like New Hampshire and Connecticut
should attempt to tax income from National
Debt. in defiance Of an express stipulation OF the
Government" IL will fed that the Leg isiatures
of many other loyal States will do just the same
thing But il there right or justice in the gene
RAJ Government attempting to exempt any por-
ton OF the income of the citizens Of the State
from taxation for State or local purposess If
this doctrine 10 conceded the effect will be to
build up moneyed srris,ocracy-a privileged
c'ass-vho will be relieved from the burden Of
supporting the Government while enjoying all its
privileges. thus adding TO the burdens of the bal
ance of the community. The injustice of such
. policy is apparent that the people. who are
yet the Government. will repudate il. 1t will
not do in this country yet to exempt wealth from
taxation. and place it altogether upon the pro-
ducing classes.