Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1865-12-12

H. Nose c@ilmdtcS ana tlle basis ifN'
1g which they rest, are sustained by a resi-
Sc Of English experience under a debt on
et Lhild larger than ours, with ordinary ai
ne extraordinary expenses nc least One-hs
st larger than ours are likely 81 reach, ar
borne through "A period Of much le
.H wealth producing power. The Cover
le meat charges for all expenditures iifl
)e years ago took one pound in six Of @
~ products of Great Britain, but the'
" charges have now fallen 10 one pound
'e nine We commence our National bI
8 dens 1virh resources that, in the very fir
~ year, VIII be required tD bear an aggr,
q gate of less than five Der cent, or on
e dollar in twenty.
81 IL Is true thatmany circumstances uaa
p occur TO prevent the accomplishment
e these anticipated results, butthe estimhte
l. have been maie upon what are regarde
a. reliable data, and ara well calculate
e 10 encourage Congress I'm leyyiug take
aud the people illpaying them.
After careful reflection, the Secret4i-
! concludes that no act of Congress lexceU
{ for raising the revenueI would be NOR
acceptable to the people, or better cal
culated JO strengthen the national credit
than one which should provide that tw,
hundred million of dollars, cnnmenein,
with the next fiscal year. shall be anuu
ally applied to the payment of the intere,
and principal Of the national debt. Ih,
estimates for the next fiscal year indicate
that very much larger amount could bs
so applied without an increase Of taxes
Before concluding his remarks upon tie
national debit the Secretary would sug-
gest that the credit of the five-twenty
hands issued under the acts OF February
tWenty-fifth, eighteen hundred andsixty-
~ al
Gred and siXty-fOur, would be improved
in Europe, and, consequently, their mar
Set value advanced at home, II Congress
should declare that the principal, a. well
a. the interest, of these bonds is 10 be paid
in coin. The policy OF the Government
Z ia regard 70 its funded debt is well lHi-
: derst0Od iI the United States, blIi
the absence Of "a provision i'm these
( acts that the principal Of the bonds
! issued under them should be pnil in coin
while Sileh q provision is contained IN the
act under which the ten-forties were is
sued. has created some apprehension i'm
Europe thatthe five twenty bonds might
! becalled iu al the expiration of five years,
{ and paid ia United States notes.
/ Although ID is not desirable that our Sc
( curities should be held ont of tile United
States, it is desirable that they should he
count Of the influence which these mar
kets eSertupon our own. II is, therefore.
important chat all misapprehensions on
these points should he removed by am eC-
phcit declaration Of Congress that these
bonds are % be paid in coin.
TAX tTI0N OF NATIoNAL sECTrRTTTrs.
In view Of the fact that the exemption
of Government securities from State tax
lHf fa o
unjust discrimination in their favor eff
forts may he made 10 induce Congress 10
legislate upon the subject of their taxa
ton. Ofcnurse, the existing exemption
from state and municipal taxation of
bonds and securities now outstanding
viii be -cruptIlously regarded. That eX-
emption is a part of the contract under
which the securities have been is
sued and tie money loaned thereon
10 the Government, and it would
not only be unconstitutional. I
bat a brpacll Of the public faith
of the nation to disregard IT, It would |
also, in the Judgment Of the Secretary, Je !
unwise- for Congress to grTntt1 the States |
the power, which they viii not possess !
unless conferred by express Congressional /
enactment, Of imposing local taxes upon |
securities of the United States which mav I
ba hereafter issued. Such taxation, in
any form would result In serious, if not .
fatal, embarrassment TO the Govern /
ment, and, instead Of relieving, would |
eventually iujure the great mass .
of the people, who are 10 /
bear their full proportion of the .
burden of the public debt. This is a sub .
iect i'm relation to which there .
should be no difference Of opin- !
ion. Every tax payer IS person. I
ally interested in having thepuhlic debt
placed at hOma, and at a low rate of i'll /
terest which cannot be done If the pub /
lie securities are 10 be subject to local tax
atiou Taxes vary largely in different
States, and in different counties and
cities of the same State, and are every
where 50 high that, unless protected
against them. the bonds into which the
present debt must be funded cannot De
distributed among the people, except in
some favored localities, unless they beara
rate Of interestso high rs t0make fhedebt
severely oppressive, and TO render the
prospect of its eXtinguishment well I
nigh hopeless. Exempted from local I
taxation. the debt can, it is expected, Doe
funded at an early day at five per cent.
If local taxation is allowed, no cJnsiderl-
BILE horton Of the debt which falls due
-sls- aaei=t f.-,E years can ba funded Z
at i1e'laS at less than eight per
cannot afford to have their burdens thus
To is also evident that the I
relief which local tax payers would oh
tain from government taxation, as the
result of low rate of interest
ON the national securities, would,
at least, be as great as the in
crease of local taxes to which they I
would DE subjected on account of the eN-
emptian of Government securities; !
while IL those secur. es should bear a 4
rate Of interest sufficient 10 secure their 4
sale when subject to local taxes, few, if /
any Of them, would long remain where 4
these taxes could reach them. They /
would be readily transferred to other .
countries, into the hands Of foreign capi- .
talists. and thus atlSst the burden of pay
ing a high rate Of interest would be left 4
upon the people of this country without /
or aIleviatiOn.
The present system Of internal revenue
is one Of the results of the war. Tt was |
framed under circumstances Of pressing I
necessity, afiording little opportunity for |
careful and accurate Investigation of |
the sources Of revenue. Its success, how I
ever, has exceeded the antieipations Of
its authors, and is q most honorable testi- I
monial to their wisdom and to the patri- /
otism Of the people who have 50 cheer |
fully submitted to its burdens.
With the restoration of peace, indus I
try is returning again to its former cham I
uels, and revision Of the system now
becomes important to accommodate 1t to
the changed and changing condition Of
the country.
Every complicated system Of taxation
opens the way to mistakes, abuses and
deceptiOne. Temptations to dishonesty
and fraud are placed before the revenue
officers, and the tax payers, and both are
often thereby demOralZed. Honest men,
who pay their taxes in full are injured, if
not ruined by the ingenuity of those who
evade their share of pub
lie burdens.
The multiplicity of objects at present
subject to taxation IS one Of the most Sc
riotls objections to the present system.
Many of these yield little revenue, while
its collection is troublesome to the coli
Ieetpr and irritating and offensive to the
tax payers. This multiplicity also in
wolves as many temptations to fraud, and
as many difficult questions for decision,
rs the objects from which large revenue
is derived.
To impose taxes judiciously, so as to
obtain revenue without REFRESHING indus
try, is one of the highest and most diff
cult duties devolved upon Congress. Tax
alton which i'm one year may be scarcely
felt may the next year be oppressive;
and that which may not be burdensome
to those who are well established in busi-
ness, may be fatal to those justcOmmenc-
ING. Every branch of industry has its
infancy, and ought TO be encouraged by 4
liberal legislation. Whatever of indus
trv or enterprise is destroyed, by iHiudi-
cious taxation or otherwise, is a damage
TO The National welfare.
Heavy taxation may drive capital
from our shores, or prevent its employ |
ment in the manner most advantageous /
to the country, and thus prevent that de- /
mand for labor which is the best security 1
for its proper reward.
The taxation which is now extremely !
productive may in few years become |
or engender a spirit of Op-
position and discomfort which may en- /
danger the National credit.
REVISION OF THE REVENUE SYSTEM.
It is important, therefore, that our /
revenue system should be frequently and /
carefully revised, in order that it may be /
accommodated to the habits and charae- /
ter of the people, to the industry of the /
country, to labor and capital, to wages at
home and wages abroad. It is also of the
highest importance that there should be
a careful adjustment of our internal 70 our /