Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1866-05-31
RUTLAND HERALD.
TUESDAY, MAY 30, 1866.
Taxation OF u. =. bonds.

Taxation Of u. >. Bonds.
The war through which we have
raised threatened the very existence of
the governments our national credit
was ow aud vet TO carry on the war
il W., 1eeessarv to borrow vast sums Of
monsy and to uotan the money in the
shoyte, possible time. In other words,
when q. credit was poorest, when the
future o. me country and It's probable
ability 10 meet its pecuniary obligations
were most uncertain it was necessary to
borrow most heavily. Under such cir
cumstances the government was obliged
TO Offer every inducement to purchasers
Of It's bonds, and among others the in
ducemtnt growing out OF the exemption
OF the bonds from taxation. The life OF
the nation was at stake that was
enough 20 override all other considera-
tons.
Blu: now the circumstances are very
different. The country is no longer in
war. he continued existence Of the
government is assured the national
debt though large, is not beyond the
national resources; the national credit
is accordingly vastly improved and inn
proving and hence, in the issue Of n3so
bonds. for the conditions Of those out
standing cannot, of course, be interte7ed
with the abstract Justice and the policy
Of continuing the exemption from taxa
ton are considerations which are no
longer oyerborne by the paramount
consideration OF the nations safety.
For his reason, Senator Sherman's
bill, which it is proposed to consoli-
date me national debt into long five per
cent. bonds which shall be exempt from
taxation, IS not received with favor by
large portion Of the Republican press
and IS opposed by many Republicans in
Congress. This opposition arises partly
from .ha lmpracticability Of the plan,
because me securities designed to be su-
percele5 generally bear higher rate Of
interest," nan it is proposed the new
bonds sha.. acar. and the holders OF the
old WI therefore not be likely to sur
render .aem fol the new voluntarily.
But as. de rom this, there is g pretty
genera. opinion among Republicans that
the exenDtion from taxation, which was
originally justified by the considerations
we have uamed, cannot in the present
peaceful condition Of affairs be justly
or w,se.V attached to the new issues OF
natioIal securities. The exemption is
odious !. produces an obvious Unequal
ity between holders of the bonds and 9TH
ers in The matter Of paying taxes, and If
continued .tter the original necessity for 1t
has t6assI, will not be easily endured by
the people. The loverso OF their country,
among the people, were willing to endure
and defend any measure which aided in
saving me country while in peril; the
time Of great danger having passed, the
same people will demand a return to
equal taxation as rapidly as may be.
The bonds now outstanding will soon
be maturing and will then come within
the reach and under the control Of gov.
eminent. Whatever new bonds are
then jssGed to replace them, should be
made subject to taxation by Congress
The Boston Advertiser in a sensible ar
tic!e On >Ais subject, well says; 1--WE dc
not understand why the government
should u0- nave sufficient confidence ir
it's own credit to place its new loar
upon me market on its own merits
without attempting to facilitate its ne
gotiatlon by attaching to it any extra.
ordinary OF unusual privileges. such as
are denied to the bonds Of States and
corpor.,.2 ns.