Evansville daily journal. (Evansville, Ind.) 1863-1866, 1866-01-11
The Public Debt-.Cheap DemagOgue.

Ths Herald of yesterday has long
dyspeptic article, denouncing the ex-
EN- ption Of Government bonds from To- i
cal taxation, and declaiming against
what il calls ga bonded aristocracy.
1t ia little singular that Democratic
hostility to the exemption of Govern
ment securities from taxation BY the
States never manifested itself till debt
was necessarily created in prote citing
the Union from its attempted destruc-
ton by rebels. G
During the Mexican war, the Govern
ment was under the necessity of issuing
its evidences Of debt to the amount of
probably 500 000, 900, which was exempt
from State taxation 10 as fall an extent
as the present bonds, and were also free
from an income tax by the General Cow
eminent, as the bonds since issued are
not. ,eH EaNoN Gus ua
Did anybody ever hear Democrat
complain thai those bonds could not be
taxed by the State? Not. one. The
Supreme Court had repeatedly decided
that debts owing by the United States
were not subject to taxation by State
authority, and no class of politicians
was then found demsgogical enough to
abuse the bondholdera because the Con-
stilution prohibited the States from in.
terfaring with the paramount right of
the Federal Government to employ the
necessary agencies for the exercise of
its power to contract debts, and carry on
military operations.
There was also another reason for
Democratic silence then, on the tax
question. The bonds issued to raise
money for carrying on the Mexican war
were generally purchased by Democrats,
while the rebel s9mpathizing portion of
that party, which comprised the greater
portion of it, refused to invest dollar
in the bonds issued 20 provide funds to
maintain our armies while fighting
az inst tae rebels Not only did they
refuse to loan money to the Govern
ment and take its bonds therefor, but
sought to prevent more patriotic per-
sons from doing so, by predictions that
the bonds would never be paid, and that
the nation was insolvent and would be
compelled to repudiate its debts.
Instead of coming forward to the as
sistance Of the country, many of the
wealthy men Of that party entered into
gold speculations, bought and boarded
the precious metals and used all the
appliances known to stock jobbing
sharks to enhance the value of coin and
reduce that of the legal tender treasury
notes which formed the major part of
the currency. So far as they succeeded
in their .nefarious schemes, by so much
did they increase the public debt, as the
depreciation of Government paper COM
PEELED it to pay higher prices for the
supplies it furnished our armies, and for
the ships with which it defended our
coasts. Some of them amassed fortunes
By thus gambling on the misfortupes of
their country, but others, who held on
too long, waiting for geld to reach 8
premium of three hundred per cent,
suffered the consequences Of their lack
of faith in the stability Of the Union,
and met the just punishment of making
merchandise of the calamities of the
country. This desperate class of gam
blers lost heavily, and tits matter of
thankfulness that they did.
There were other rich Democrats who
invested their money in staple articles
of provisions, and held them ont of the
market until the necessities of the peo-
| pie compelled to pay prices that made
the specializing forestallers rich.
| Still another class invested in whisky
and mads fortunes out OF that, By the
mistaken policy Of Congress in exempt
| ing from internal taxation, so much of
that com modify as was Manufactured
before the tax law went into operation.
All these classes of spectators de-
nounce the holders of Government
bonds as "aristocrats," although hun
dreds of thousands of them are farmers,
mechanics, tradesueen and widows, and
their investments have Melted them
much less than almost any other they
could have made.
There is another curious feature in
this Democra ie crusade against Gov
eminent bonds, and that Is, that while
they pI oclaim that the bondholders are
favored class, and escape their just share
of taxation, they will not themselves
purchase the bonds, when they can be
obtained at discount. IF they think
there is profit in holding Government
bonds, at the comparatively low rate of
interest they bear, why do they not buy
10 40s at 80 cents on the dollar, for
which the "aristocrats who hold them,
paid par to the eGoyernmentG Until |
they show that kind of practical faith in
the doctrine they promu gate, the people |
will repose as little confidence in them,
as they did in their predictions that the |
South could not be conquered, and that
the Union was permanently destroyed. |
The wealthy Democrats of Indiana could |
invest many millions in the. public debt,
BY simply selling real estate they are
holding on speculation, or for exorbitant
rents, and putting the proceeds into
bonds; and as long as they prefer all
other kinds of investments to the bonds
of the Government, they give the lie to |
their assertions that the public creditors
are privileged class.-IadiaaGpoks
Joarnat. I'D d sGl8AfH
G'13TIIlT y -T7TT7-T
PRESIDENT JoHEToE IN 1850" The
Corporal, writing to the Philadelphia
Press, refers asfoIlOvs to the memorable
speech Of President. johnson in the Sen.