Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1865-08-24
2ITll.AND ERALD.
MONDAY, AUGUST 81, 1865.
Toxa,ion OF National Securities.

uenally consist Ol HllsIepISsShN"'AV"'
mixed about half-and-half with person
a,,,ies. That paper in its last issue,
however, has an article commenting up
on some remarks of ours on the subject
Of taxing the national securities, which
omits the personalities and contains
only the Misrepresentation This Is so
great an Improvement on the part OF the
Co,yisr that it calls for special notice,
and in the hope that we may still Iurth-
er improve that paper so that 1T may
finally be induced to drop to some ex-
tent even its habit Of gross misrepre-
sentation, we will try for once to set 1t
right on the subject alluded to.
In the first place then, we repeat
(what the Courier was careful TO concea)
that the United States Supreme Court
settled the question, years ago, as to the
power of Congress to exempt the United
States bonds from State taxation. The
State taxation was decided to be uncon-
stitutional. What follows? Just what
we stated in our previous article, to
which the Courier excepts, viz: that at
is useless to agitate the matter in the
State legislatures with "a view to any
valid action they can take" The CoaD'-
ier says that the legislatures elect U. S,
senators and the people directly elect
representatives in Congress. This is no
news to any, unless it be to some of the
Comisr's readers, but it has nothing
whatever to do with the question we
were then discussing, viz: what the
State legislatures could do in the way
of taxing the bonds. Stick to one
point at a time, Mr., Courier, and you win
not be so likely to get muddled.
Now, it being settled by the Supreme
Court that the State legislatures cannot
constitutionally impose tax upon the
bonds in the face of the Congressional
exemption, the next question that arises
is this-can Congress itself legally repeal
the exemption. This is really the only
question in the case, but the Courier en-
! ONClLOOhS anu ~ 10 uOb u llO-
litical question; it is not a question of
mere policy or expediency it is wholly,
purely and simply question of law.
We shall be happy to be convinced by
the Courier " or any other man." for we
have none of the bonds and none of "our
relatives have any" that we know Of
that we are wrong but at present it
eeems very clear to us that the exemp-
ton from taxation was a part of the
contract between the government and
the purchasers of the bonds, just as
much as was the governments agree
ment to pay certain rate Of interest on
them, and that the government can now
no more repeal the exemption than it
can repudiate the interest. The govern
ment agreed to exempt the bonds from
taxation and did exempt them by ex-
press enactment of Congress approved by
the President; and having sold the bonds
under this exemption, and for higher
price than it could have got for them
without it, the government is bound by
it for all time, just as it is bound by its
agreement to pay the principal of the
bonds. This we repeat, is the light in
which we are compelled TO view this
question ut present, and it is to this
question we invite the Cowjey's atten-
tion, as the only one in the whole mat
ter
It's true, as claimed by the Courier,
that some of these bonds have been sold
since the surrender of Lee and Johnston
and since the permanence of the Union
became assured; but all the money that
could be raised by their sale was imme-
diately required to pay up the brave SOL
diers about to be discharged from the
service; there was no way of raising
this money in season except by the is
sue of the bonds under the law which
exempted them from taxation, and the
argument in relation to the want of
power to repeal the exemption applies
to them precisely as it does to those
frst Issued under the same act of Con-
gress. ...
lastly, we stated that the national
Necessity which called for the exemption
Of these bonds, no longer exists with
reference to any new issues that may be
authorized by Congress and therefore the
taxation of further issues, at the same
rate as other property, should be per-
mitted. Congress will undoubtedly be
called upon to authorize the issue of new
bonds from time to time as those now
outstanding mature and require nav
ment and as the war is over, the arm
les are paid off and the stability of the
Union is no longer doubtful, such
bonds may be well disposed OF, we pre-
sumo, subject to taxation like other
property. This is question over which
congress win have full power when it
Comes 10 authorize their issue. The 9TH
ir,,z