The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-12-06
faith aud integrity Of the government win nnd ready
response from the patriotic masses



response from the patriotic masses
me resources OF the country great beyond enumo
ration, the development Of wealth rapid beyond prece
dent, and II requires only judicous application Of
means TO the end proposed TO enable tho not
only 10 meet all Its pecuniary obligations with entire
promptitude but without imposing exactons that shall
De unduy burdensome or give just cause Of complaint
It is believed that from few sources revenue can be
raised sufficient TO meet the interest on The public debt
tribute ,hrT or dollars SINKING
FUND that will pay the national dobt in thirty two years
and halt.
WHIT CAN ne pRoDvcED nv rHK TARIFF
The tariff be adjusted as to produce one hundred
and twenty millions Of dollars one hundred millions
wines fifteen millions on tobacco, one hundred and
twenty-five millions on cotton, fifteen millions from
stamps from licenses twenty millions and from the
premium the surplus Of gold after paying interest on
bonds ten millions. making In the aggregate. four hun
dred and 1--WE millions of dollars, sum probably one
hundred millions in OF the amount that will DO
required under economical administration OF the gov
ernment leaving largo margin on the above estimate
FIR reduction The estimates however of the
deriyabo from tho several sources indicated are not the
result Of loose CONJECTURE but each Is founded upon
careful inquiry In reference To past productions and
revenue under the existing law.
HTIMATgp RECEIPTS rRoa COTTON CROP
II is estimated that the cotton crop the next year will
amount 70 between two and half aud three millions OF
haes tax of cents per pound on two and nall mill
ons will produce hund ed and twenty-five millions
of dollars II reasonable TO suppose that the annual
crop OF cotton after Two three years, win equal In
amount tho average Of the crop for few years previous
to 1861 which about four and half millions Of bales
tax OF eight cents per pound that quantity would
produce hundred and eighty millions OF dollars
moro than sufficient to pay the interest on the pub
lie debt after the entire amount Is funded The license
and stamp could be dispensed with after the next
fiscal year. and II is to be hoped that after that period no
more income will be derived from premium on gold
Three-ourths Of the crops of cotton and tobacco are
exported that proportion therefore, OF the tax on those
articles would be paid by FOREIGN countries and to that
extent contribute TO the liquidation Of the public debt
and relief Of our own people
TAX OF EIGHT OR rES CENTS PER POUND ON COTTON
RECOMMENDED
tax cotton OF eight cents per pound would
ne thcr minsh the domestic prod ction foreign de-
mand for that staple Orr OF production natural
and applied are such as to enable MS 70 furnish the
article at a less price, including the tax pro-
posed, than any olhcr country. Even at half
the price which this product commands In Now
York and Liverpool Il, can be grown and sold at large
profit including the proposed tax in its cost Nor would
tn imposition o. tax on tho staple production OF the
Southern States prove injurious TO that section OF tho
Union. II will Of necessity be large purchaser OF
Northern manufactures and il bv the proposed measure
tho North and south be relieved almost entirely from
other taxation for government purposes as they would
be cotton IL taxed to the extent proposed their nr
and both North and South derive benefit from the ope-
ration
DIsoaARoIvG TIE ARMY OF COLLECTORS.
BY thus restricting the subject Of 10 few ar
tcles Of general production the cost OF collection would
be greatly reduced by the discharge OF whole army Of
assessors collectors, &c, TO the manifest ADVANTAGE OF
the public treasury would the east Of the benefits
10 result from this action no found IN the fact that such
an adjustment OF the system OF taxation would leave
ground for public complaint and consequently preclude
dishonest and disloya politicians from uniting with the
enemies Of the Union in ling the public credit and
rrpudiating the national obligations
THE TAX ON GOVERNMENT SECURITIES WHICH FORM THE
There IL question which vitality concerns the
national banking system than the power Of the States TO
tax the government securities which form the invested
capital Of the banks ORGANIZED under that system Not
pledge Of tho national faith held out to corporations and
individuals, that their stocks should be rcc from taxa
ton by under State authority but the option or re-
framing from such investment denied to the national
banks as II was by law made fundamental condition to
their existence that onehrd OF their capital should at
all times be held In the form of national securities by
the Treasurer Of the United states; ard, in addition
every dollar q their circulating notes must DC secured
RETAINED at their pleasure from placing confidence In the
good faith Of the government these institutions were
right OF individuals TO immunity from taxation on gov
eminent stocks is generally conceded the Ike privilege
their taxation for State, municipal and local expenses
Tho constitutional Bgis, which the Supreme Court
Of the United States has hitherto extended over
the national securities. no matter by whom or
for what purpose held, - now sought to be
wresed from It's hands upon the theory Of State nrs
d cton-a fragrant violation Of the contract entered
Into with the public creditors under tho ciearest
enacmens or law, and the most binding obligations d
public faith It conceded for the most part by the ad
vocacs OF State taxation that the United States stocks
In tho hands OF individuals cannot bc assessed for State
and municipal purposes But discrimination against
the ground that tax imposed upon the shares In bank
Is not tax upon the securities represented by those
Ibis hypothesis will he found, upon critical examination.
20 be faacous can scarcely admit OF doubt that the
against ansihcr both having complied with the same
is grossly unjust must be obvious 70 ALL That
exemption from State taxation was intended to apply 10
III stock issued matter in whose hands II might be
ound be questioned No exception was made in
avor Of individuals no discrimination was attempted
II banks II the shares OF bank whose capital Ia
invested In United States stocks be taxable TO whose
benefit does the exemption from taxation guaranteed u
al Inv
caton has loaned TO the government the money for
which IL holds those obligations Surely the exemption
bc assigned but to the respective stockholders,
whose scrip simply represents the proportionate share
securilicsg Upon the theory propounded an
ndiv dual who purchases one hundred thousand dollars
Of government stock for specific purpose may plead ana
the exemption from state taxation which the act
OF Congress pledges but II four persons purchase the
like amount for similar purpose, and each receives
certificate of the amount he has paid towards tho gross
Investment thew lose all benefit Of the immunity at
tached TO the securities Ia hand The injustice, II not
the absurdy of such discrimination must be suricenty
obvious
Nor viii the Improperly OF the proposed taxation Of
national banks be less apparent when II Is borne in mind
they already taxed by the general government
greater than any oihcr corporations or class
OF business The law Of their creation requires them TO
perform certain duties and authorizes them 10 oxcscse
imposes also tax OF half OF ono per cent on tner
deposits, one per cent on their circulation one
Invested in government securities, and nve
per cent on their income or earnings. All
this Ia paid from the ordinary earnings OF bank, and
reduces profits the extent or the taxes paid whereas
all other corporations, manufacturers, &c, are per-
mtted their and charges 70 sum more
than adequate 10 the amount OF taxes paid thus
preserving their profits intact and casting their burdens
upon the public in the capacity Of consumers, travel
lers, &C.
II is not through papabs injustice 10 vested interests
and by dsrraceful violation Of public faith, that the
subject OF State taxation should be reached IL public
policy demands contribution TO state and local expenses
the hands Of these institutions there ID mode OF NJ
tainment not distant which can be reached without
breach OF national honor Nearly threefo OF the
public debt Is either not funded natures 1t the option
OF tho government within short period, and almost the
whole amount within the next eight years II within
tho power Of the government such me without vfo
cnce ~ engagements 70 try the experiment Of issuing
bonds subject 70 state TAXATION o. Of borrowing less
present obligations 70 it, creditors But every dictate Of
expetiency and justice s character and credit at home
ard abroad, demand that Congress and the highest
judicial bunai Of the nation shall frown upon AL At
Temps 20 oyerde the CONSTITUTIONAL functons indspcn