New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-08-04
TAXING SECURITIES.


In the dark hours of our great struggle, now
happly ended our Government was often in
pressing need of money. and great deal Of it.
We hardly ever encountered great defeat or
military failure that we did not have to shoulder
great loan directly after it. The peril of de-
feat and disunion through financial collapse was
constant and very grave. Had the time ever
come when Greenbacks would not buy Bacon,
our National overthrow would have been COM
plete and final. "Bird O. Freedom Sawin" OBJ.
served commendingly of the Confederate shin
pasters that they "go pretty well for drinks,
when there s q knife behind 'em;" but, if our
Illegal Tender" had ever failed to "go" nithont
the knife, the Shareholders Confederacy would
have been fixed fact from that moment.
To borrow Six to Eight Hundred Millions per
annum, from people including few large capt.
talists and unaccustomed to public loans and
funds, would have been difficult at any time;
to borrow it of such people amid the sacrifices
aud disasters of q great, exhausting war, is
miracle of Finance. Nothing like it was ever
done before or elsewhere in the wide world
Never were such loans effected at so small q
percentage Of cost and charges for brokerage;
never before did so many lenders sell property,
often at a sacrifice in order to supply the press
ing wants of their Government. We happen to
know one man who sold out thriving store
and three or four good farms-all the tangible
property he had-and invested every dollar, so
fast as received, in the National Loans. And
his case is doubtless substantially that Of
thousands.
To induce such large, continuous investments
in the funds Of an mperiled Nation, certain III
ducements were offered. Among these was ex
empton from taxes. The Government takes a
small slice out Of all income derived from inter.
est on its bonds but it stpulates that this is all
that 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 Marshall pronouncing the decision.
And, il the Government had a right to borrow at
all, it surely has a right to prescribe the terms
on which its loans shall be issued.
| We are surprised that the Legislatures Of
loyal States like Connecticut and New-Hamp-
shire should attempt to tax income fDm Ma
tional Debt, in defiance Of an express stipua-
ton Of the Government. They should have left
this poor business to the Legislatures of New
jersey and Delaware; (nether Of which, we
believe, has attempted it) The attempt can
not succeed, for it is reputation and perfidy.
The Government has the power and the will to
keep its faith; and any assault upon it only
weakens the National Credit, thereby increas-
one Let US have no more of this 1t is al
ready established, we believe, that the use Of
Government funds, say as basis of bank circu.
lation, can be taxed. That ought to suffice.
But we solicit moments thoughtful atten-
ton TO the Taxation Of Securities generally.
wherein we see what we deem injustice and
abuse. For example:
A father dies, leaving farm worth $40, 900 to
his two sons. After duly considering, they
agree that one shall take the farm and give the
other his note secured by mortgage for his half
of its agreed value Before this, there was only
the farm to tax, and it was taxed accordingly.
Now, the assessor reports an increase of $1,000
in the taxable property Of that township; the
farm figuring in his list as $4,000 and the
mortgage at $4,000. Yet we know that there
has been no increase whatever - that
there is just the $4,000 there was
before, and no more: the only change
is that it is owned by two person in
stead Of one. Now, We do not say that the
mortgage should escape taxation; we do say
that whatever amount Of tax is assessed and
collected on the mortgage should DO deducted
from that previously assessed on the farm.
Otherwise, we may have double and treble VAL
uatons of and assessments on tho same identi-
cal property, and great nominal enhancement
in the assessable value Of property when there
has been no real enhancement whatever.
We have doubts of the justice of assessing a
bond and mortgage for 100000, carefully de-
posted in a fre.proof cellar vault, equally with
block Of houses valued at 100000 which
have to be policed, and lighted, and kept Access
sible by streets, and guarded against fire, &C.,
&c.; but we will think further of this. On the
point previously considered, We have no doubt
whatever.
@B1.sus.ssssssss's1
The World oracularIv savs.