, 1865-08-02
TAXlN1 GOVERNMENT SE-
CUKlT1EB.
Letter from the Compt1 o1ler Of she
Currency.

The Comptroller of the Currency has writ
ten Ito following letter to bank officer In
Hartford, In reference to the recent action Of
the Connectlcut Legislature on the taxation
ct Government sssgs1t1es; g5. les; pzp.nrsrz7.
"Orr1cz OF CoxrTaoLIER or THE C1amSeT, m 1sst
"nor Sir: Tour letter Of the lith instant
been referred to me, With the request that
ehcu]d ansEerit.
II cannot but express my eurprtse that the
Legislature Of the State Of Connections
should entertain proposition TO virtually
ccntlscate portion OF the Government se-
curities held by inhabitants Of that State:
"The law cxemptlrg from taxation Coz.
1t cannot be questioned. The bonds were
disposed cs, and purchased With q provision
Of law as part Of the contract, that they
were to be exempt from ta1Ation, aud the
country hos received an equivalent for such
exemption IN The additional price received
for the bonds. 49,.
the Government would have sold for any
thing like the price rcs}ize1, OF at any price
ut all commensurate With theIr value, II it
haa been supposed possible TINT they could
be taxed By State laws, directly or indirectly?
Il tour Legislature can impose tax Of IF.
teen per centun on the income derived from
0UFEIUN4tAL 6cEA4AtAIa3 ~ 40 jas 10 ~~+AAf~-
tent for It to impose tax Of h{&y OF one
hundred per cent.
nit is sourcc of regret TINT any Northern
State should for q single moGent conntsn'
ance an attempt to sepadIasc or nulllly
constitutional act Of Congress-, aud one, too,
that was deemed necessary to preserve inc
inlegsity Of the nation. In one aspect Of
the case, however, It may ba regarded ~ .
most fortunate occurrence, as 1t VIII seIse to
| show the people that 1t will not be sate for
! the Government to AitoW the Southern States
! to be 80 reconstructed as to psrmls
Their beng represented Hea II h. beoass f. ea es
| who would be but too willing TO unite. With
Northern men Of the character Of those favor
| inr the measure under cons!deEatlo to re-
| pndiate the rational debt, If not BY direct
| action, By tn equally destructive Wans of
action IN providing the means Of payment.
| am glad to hear, end the whole county
haye reason to rejoice. that the fioance con.
mittee of your State Senate stands opposed
| tc this insidlous measure. The effect Of tbs
proposed tax would be to reduce the value
Ct government securities In the hands OF the
people OF your State, fftser per cent, pro-
gtdcd there vas an assurance that no TURNER
eAsctlon would be imposed, but viii ant sach
assurance would reduce the market value
much more, as the next, or eny subsequent
Legislature, could increase tbs tax to the
| extent Of destroying their productive value
entirely. The State Of New Hampshire has
paesEd law imposing n tag Of TWENTY-FIVE
per cent on the income derived from national
secpgities.
III ibis action was confined to the two
States. the result Eor1d simply be to deprive
The people OF New Uanpsh and Connect!cu,
of the privilege Of holding OF owning Govern
| uent eccur1tles. It Is very clear thRt til
Sta1es would not eet the tax, IS the owner
| would sell the securities to parties out Of tn
States, or 90 oct themselves With the secur1
tt1f, however, other Northern state
should follow the1r example, and It shoul'
be conceded that they had the right to do 90
tho credit OF the Government and Of the NJ
tional curre7cy would be practically de
! strpyt6.
"This, perhaps, Is the object Of the Consed
crates In this suicidal scheme. I think al
justified In saying that there Is NOT the leas
danger Of the proposed act, it it should bt
come a law, being sustained by the Suprem
: Ceurt Of the United States.
"It Is, perhaps, proper that I should 20
! | that the Secretary Of the Treasury coucu'
in my Views as to the right Of the States t
. tax United States securities, but Is othes%ts
, ignorant Of the contents Of this Letter. !,
: ."Rcfesring to The proposed act to tag Il
; stock owned By individuals in uaion
+ banks, an clearly Of the opinion that 90;
4 stock represented by capital Invested
t CT In part In United States securities, Is ltab
0 to State taxation onlyIon the aua 1unt MT
4 invested. and enclose herewith PRINT,
r slip, containing letter written BY =.
o I myself, both concut1ing In the vteWs1 ma
:. stated On The anhject.
ri Tours ye"y respectfully,
" ''FgEgMAS CLAnxE,
T. "John /. Bruce, President Phosni1 Nation
Bank, Hartford, Conn