The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1866-09-18

will never consent to assist, directly
or indirectly, In setting up legally or
illegally rebel Congress to rule over
the United States.
State Taxation Of Government Bonds.
This subject is effectually disposed of
by Secretary McCULLoOH in his last
annual report. He shows that the
present bonds are protected by the
Constitution from such taxation, as
the Supreme Court has repeatedly de-
rcided, and informs Congress and the
country that with such a burden
placed upon the new bonds which
must be issued q to meet ian,-aceruing
national Indebtedness, he could not
sell them at par without paying as
high as eight per cent. interest, and
the tendency Of such a policy would,
moreover drive our, securities,to Eu-,
rope, where they would be beyond the
reach of national taxation.
I'VE commend his argumentyto the
people as well as to those small fry
,demagogues who are trying to ride
into Office on a promise to procure the
itaxationgof Government bonds by the
States, measure they know to be i'm
possible as long as the Constitution
remains as it isl This is what the
Secretary of the Treasury says:
In view of the fact that the ex-
emption of Government securities
from State taxation is, by many per-
sons, considered an unjust discrimina-
gtion in their favor, efforts may be
made to induce Congress to legislate
upon the subject Of their taxation.
OF course the existing exemption
from State and municipal taxation on
bonds and securities now outstanding
will be scrupulously regarded. That
exemption, Is, a part of the contract
under which the securities have been
issued and the money loaned thereon
to, the government, and itWould not
only be unconstitutional, buta breach
of the public faith of the nation to
disregard it. It would also in the
judgment of the Secretary, be unwise
for Congress to grant to the States the
power, which they would not possess
unless conferred by, express Con-
gressiofial ehactment,J of imposing To-
cal taxes upon securities of
the United ~ States which may
be hereafter issued. Such taxation.
in any form, would result in serious,
if not fatal, embarrassment to the
Government, and, instead, of reliev-
ing, would eventually injure the great
mass of the people, who are to bear
their full proportion of. the burden of
the public debt. This is a subject in
relation to which there should be no
difference of opinion Every tax
payer is personally Interested in hav-
ing the public debt placed at home,
and at low rate Of interest, which
can not be done if the public, securi-
ties are to be subject to local taxa
ton. Taxes vary largely in different
States, and in different counties and
cities of the same State, and are. every
where so high that, unless protected
against them, the bonds into which
the present debt must be funded can
not be distributed among the people.
except in some favored localities, I'M
less they bear rate of interest so
high as to make the debt severely OPP
pressive, and to render the pros
peet of its eKtinguishment well nigh
hopeless. Exempted from local tax
alton, the debt can, it is expected,
be funded at an early day at five per
cent; if local taxation is allowed, no.
fconsiderab.eportion Of thedebt which
falls due within the. next four years
can be funded at home at less than
eight per cent. II The tax payers of the
United States. can not afford to have
their burdens thus Increased. 1t is
also evident that the relief which
local tax payers would obtain from
Government taxation as the result of
low rate of interest in national secur-
tiles, would at least be as great as the
increase of local taxes ito which they
would be subjected on account of the
exemption of government securities;
while if those securities should bear
a rat Of Interest sufficient, to- Secure
their sale when subjected to local
taxes, few, if if any of them, would long
remain where those taxes could reach
athem. They would be readily trans
ferred to other counties, into the
hands of foreigngc capitalists, and thus
at last the burden of paying high
rate of interest would be left upon the
people of the country without COM
pensation or alienation.