Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1865-08-28
DAILY SENTINEL,
TaR EXEMPTION OF GOVERNMENT
SECURITIES from LOCAL TAX
ATIOy-ITs TvJIsTrCE.

datlon. The act OF Congress FEBRUARY 20,
ls62, provides that "all stocks, bonds. and other
securities Of The United States. held by irdlvidu-
ale. corporations. or associations within the
United States. shall be exempt from taxation bs
Or under State authority" This Is simply. the
Eunciation Of the powers granted 70 the General
Govern men,. through Congress. By the constitu-
ton ITO borrow money on the credit Of the
United States" The exemption Of the securities
Of the United States from taxation "by
or under State authority" was to pre-
vent the States from embarrassing the
General Government BY legislation discrmins-
ting against those securities. the effect Of which
would be to lessen their value No one will con
tend that the States should have this power, or
the right TO exercise il An eminent jurist re-
marks upon this point The power to borrow
money on the credit of the United States is ad
mitied. IL is one OF the most important and
even vital functions Of the General Government.
and It's exercise means Of supplying the neces
sary resources to meet the exigencies in times OF
peace or war. But OF rha, avail is the function
o. the means. II another Government may tax IL
at discretionf 1t is apparent that the power.
function or means. however important and vital,
are at the mercy of that Government"
But will il be claimed that it is the intention
OF the Constitution to exempt the property held
by the citizen In "the stocks. bonds and other
securities Of the United States" from the same
State, county OF municipal taxation 70 which
other capital property is subjectr The deci-
- RI. -. - n o
upon the question involved DO not maintain that
construction of that instrument, or the powers
Of Congress under it, The &C, OF Congress,
which We have quoted. fully states the issue. 1t
says the securities Of the United States shall be
sxenp, from taxation "6y or under State author
ay." Or. as Justice WILSON. of the Federal
Cosst, has expressed it, the States have not the
power to tax these securities At their discretion
The power 10 tax those securities 80 a to make
them return an equal contribution for the necessi-
ties OF the Government. the same other prop
srty, evidently resides somewhere Ii certainly
would not have been the intention of the trainers
Of the Government to make so great distnc-
ton in the different classes of property and the
injustice Of such a discrimination must be appa-
rent 10 all
When the question Is considered from a com
mon sense stand point. and in the light OF the de-
eisions of the Supreme Court, the conclusion is
evident that il is the object of the constitutional
provisions upon the powers of the General Gov
eminent to borrow money on its credit. to re-
servo to Congress the power OF taxing those secu-
rites. aud that the States are only Inhibited from
taxing than without the consent of Congress.
Says the Act Of Congress. February %, 1862,
they are exempt from taxation by or under
State authority" and Justice Nelson in discuss
ing the question, remarks that the States canpo,
tax st their discretion. Will il be contended
tina. II the States should tax or authorize the
taxation Of nited States securities the same as
other property or capital is taxed, that Congress
has not the right to authorize il , Will il be de
MED tina, Congress has the same authority to
permit such taxation, az 10 exempt those seeuri-
ties from taxation for State purposes, as it has
done The plain purpose OF the Constitution
evidently is TO prohibit the States from dscrimi
natiug against the securities of the General Gov
srnmsns by imposing on them greater burdens
or taxasions than they do upon other property.
Another view of the question should be taken
into consideration. When Congress passed the
act Of Feby &c. 1862 .exempting the securities OF
the United States from taxation, by OF under
State authority. q provision OF that kind was ne
esssary to induce capitalists 10 loan money to the
Government, to meet its pressing necessities. The
value Of those securities was 10 great doubt. for
tie result OF the war could not then be anticiIa-
ted. Ii WAS proper and just that during hostili-
ties those bonds should be exempted from taxa
ton for State purposes But the case is vastly
different now The war 10 ended, and the value
Of the securities of the United States is no longer
in doub, The power Of taxation lss sovereign
power. Ii is power which should be exercised
BY all Governments to equslize the burdens they
impose upon the citizen for their necessities. Is
10 right that the capitalist. who has loaned bis
wealth, or "a portion OF it. TO the Government to
meet its necessities during the war, should de
mand that that loan must be exempted
from local taxation while the property OF
She soldier, who has risked health and life
10 sustain the Government, should be sub
ject to those burdens! Is money tn have
the precedence of the soldiers services, Is it to
be valued higher than health or life-the risks OF
warf Must the citizen. whose property is SUBJ
iect to State. county and municipal taxation pay
not only these taxes upou his own property. but
those also of his nsighbor who has his surplus
invested in Government bonds, and at the same
time. 10 addition, be taxed to pay the interest
upon those bondst In any way the question is
considered. the justice OF equal ,axstion-sf max
ing every description OF property or cspitsl p,y
equal tribute to the Government TO provide
for lis necessitie. becomes more and more eyi-
dent. Aud il cannot be regarded reputation,
the Journal contends it is TO place the Govern.
msnt securities upon the tax list for State couuty
and municipal purposes upon the same footing as
other property.
HON. GEORGE "a. DLErON ON
THE SITUATION.