Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1865-08-31
RUTLAND HERALD.
TUESDAY, AUGUST %, 1865.
raxing the national securities.

kAe ANAb fJ.At0h VI Sah VI NA~L 10 INV
called Democracy" on the subject Of
taxing the exempted U. S. bonds, 1t
was admitted in those extracts that
Congress had the constitutional power
TO exempt the bonds in question from
state and municipal taxation, and that
the exemption cannot now be repealed.
We now give below extracts from the
leading Democratic paper Of this State
the Burlington Stu,jid,-on the same
subject. We quote from the Sentinel Of
last Friday, as follows
The Republican Legislatures Of New
HAMPSHIRE and Connecticut have set
the example OF enactlng State laws for
;g9.ysctly taxing the United States bonds,
by taxing the incomes derived from
them; the former state by levying tax
OF twenty-five per cent, on them, the
latter q tax of fifteen per cent. Our own
views Of this matter of taxing govern
ment bonds we expressed in our paper
Of the 4th inst. We believe that they
ought to be subject to state and munich
, pal taxation the same as every other
KIND of property. But TO arrive at this
there is a right way and there is a wrong
one. And the two Republican State
Legislatures above mentioned have cho-
sen this latter way, and have set bad
example for others to follow. We regret
20 see that the Democrats OF our own
State, in several of their recent County
Conventions, have shown desire to fol-
low this bad Republican example, and
TO cali for the enactment OF similar
law by our Vermont Legislature at its
approaching session.
The Seatia@ goes on to argue that its
Democratic friends can make no capital
out Of such a proceeding, and continues
as follows
We can procure state laws to tax
government bonds, or Sohat is Va eteet the
Sane tksgg, tie incomes derived from those
bonds The United States Courts how
ever on the presentation OF any case
under those laws for their adjudication,
will set them aside as invalid, as every
LAWYER well knows. They would be of
no use, therefore, to bring about that
equality OF taxation which ought to
exist. and could only work, so far as
they had any practical effect at all, to
impair the credit OF the general govern
meut, which belongs to US all in COM
mon and which we are all interested to
maintain.
As we remarked in our former article
UPON the subject, the true remedy is not
to pass state laws-since the matter is
beyond state iuri sdiction--bUt to pro-
cure proper Congressional legislation
upon it. The existing Government
loans at least nearly all. Of them, have
not long to run, in case Government
chooses TO end them. AS their shortest
limits rom time to time seyerally arrive
~ let the loans be replaced by other loans,
which by express act of Congress shall
be subject to the same relative amount
Of state and local taxation that all 9th
a. - nalproperty has to bear. This
3. 1.o 1 Ia ,,actical, honest and constitu-
tionaI None but the lmonied aristocra-
cy could object to it, and their 0biec-
lions would be stifled in the just and
popular cry for such measure.
We desire, as much as any one, all
proper legislation for the. benefit Of the
) Doorar and the laboring classes. But in
order to really benefit them, let all such
legislation be sound, practical and con-
stitutional.'
e. It will be seen that the Sentinel calls
the attempt Of the New Ha" r'',pshire and
\ Connection. Legislatures to tax the
. .sopr~4s Republican example, which Dem
ocrsts ought not to follow, The Rut
land Coayisr is urging the taxation o
the bonds as q Democratic measure, tina
is. as d measure out OF which it hopes
70 make little capital Tor the used-ul
Democracy. The fact is, as we hav'
3. heretofore said, that it is not q partisan
political question at all There is NJ
difference Of opinion on the subject o
equality 0. taxation All favor it
There is, and can be, no issue between
political parties on the subject In New
/. Haup shire and Connecticut, Republic
ans and Democrats both voted Tor tn
acts saxing the incomes derived fror
the exempted U. S. bonds, but they di
il before the matter had been suillcientl
discussed to show the invalidity G
their action The CONCLUSION reaches
by the Democratic Sentinel, quoted above
a4 is precisely the same reached by US 4
former articles on this subject, viz
that as the bonds now OUTSTANDING
mature they can be replaced by ney
ones, which need not then be exempte
from state and local taxation. The res
son which exempted the present bonds
well known. It was peculiar fnar
cial necessity, involving the life OF th
nation. The reason will not exist wit
reference to future issues, SO as to pre-
vent their being locally taxed at tn
same rate as other property. All RICH
minded men, whether Republicans c
Democrats, have common object i
view in discussing the matter. Blu
they desire that legislation on the sui
ject shall be practical and constitution
s2 al. The c5isfey, and like papers, do nc
stop or care to consider questions {
,,-oo.sanI..T;4x- -topI constitutional II ~ =