The Cleveland leader. [volume] (Cleveland [Ohio]) 1865-1865, 1865-09-18
Taxation OF Federal Bonds.

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The Democratic party, in their eager
ness to pave the way for reputation, in
Difference to the wishes of their rebellious
brethren at the South, and in imitation of
the course of their great leader, JeffsrsOn
Davis in the case of Mississippi repudiA-
ton, are increasing their clsmor in favor
of taxing National bonds, in violation Of
the express stipulation of the Government
that this class of securities should be ex-
empted from taxation by the States. They
seem to forget thstin this they are directly
opposed to Democratic precedent, IS es-
tsblished by the decision of Judge fancy,
late Chief Justice of the Supreme Court
of the Uaited States, rendered at 8 time
when tAat Court was entirely under the
control Of the Democratic party. Judge
TAney, one of the most eminent Demo-
cratic expounders Of constitutional law,
decided that the States possessed NJ power
to tax Federal bonds, for the reason that
the exercise of such power would tend to
drive the General Government from the
market as a borrower; as the States might,
by hostile Legislation, were this principle
admitted, so depreciste National bonds IS
to virtually destroy the value of this class
securities, the effect of which would be to
cut off the supply of money from the Fed
eral Treasury. -.r
The Democratic hue and cry about "the
Bondocracy," determination in favor of
capitalists" and-so-forth, is one of the most
brazen attempts to contradict well-estab-
Iished facts. There never was an instance,
in the history of human governments, when
so large an amount of the National debt
was in the hands of the humber Glasses, IS
is the case with our present National in
d~ebtedness. The Government, believing
the small capitalists of the land were dis
posed to do all in their power to support
the Government in its struggle with armed
treason, issued bonds in such sunni as placed
them within the reach of all who
might choose to invest. Nobly did the
"Plsin people," as the poorer classes were
appropriately termed by President Lin
coin, respond to the appeal of the nation
for pecuniary aid. Hundreds of subscrip-
tions were daily received from this class,
ranging in amount from fifty to one hun
bred dollars. These people still hold these
obligations to the government, taken with
the express understanding that they were
to be exempted from taxation.
The Democratic party resolve in favor of
q strict construction of the Constitution,
and yet they advocate a violation of the
plighted faith of the Governments
breach of contract with the people. So
tenacious were the trainers of the Oonsti
tuition on the subject of honoring in full all
the engagements of the Government that
they declared in that instrument-srticle
9Th, section lst-that q all debts contracted
and engagements entered into, before the
adoption of this Constitution, shall be as
valid against the United States under this
Constitution, as under the confederation
1t cannot be presumed that the men who
were SO solicitous in regard to the public
credit that they should introduce into the
Constitution a provision expressly forbid
ding the violation Of contracts entered into
prior to the adoption Of that instrument,
designed to confer upon their successors the
right to repudiate such engagements as
sumed after its adoption.