Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-23
STOCK TRANSACTIONS.
[REPoRTED DY T. o'BRIrS. STOCK BROKER, GOLD HILL.
SAN Francisco, June 23-l Pm,
tn. Tn.nuon OF Our Debt.

The feasibility Of the proposed funding
of all our national Indebtedness into a
long Ave per cent. loan, subject to no tax
alton, is sternly questioned by Senator
Fessenden, and also by more practical
fnanciers. The weight Of authority is for
it, however. Of course, II it can be done;
il we can exchange all our 8 and 7 $40
securities for a single, uniform n OF D
per cent, we certainly ought, as a pure
business transaction, to do it. And the
Secretary of the Treasury, who is the au-
thor Of the plan. surely ought better to
know whether 1t can be done, or not, than
almost any other one person. This is a
question Of practicability, Of possibility,
and only q trial perhaps can settle it. :.
But there is a point Of policy connected
with the exemption Of our debt securities
from all and every species Of taxation. that
should be we'll considered before it is de.
termined upon. Of course, If the loan is
exposed to taxation, it cannot be negotia-
ted 90 low as 8 per cent. It must carry a
6 per cent. interest. And Of course this
difference Of l per cent. is more than the
Government could get from any possible
system Of taxation. It will be money in
the Government, and so in the popular
pocket, to exempt the bonds from taxa.
ton and pay but five per cent. interest on
them, rather than to expose them to taxa
ton and pay 8 per cent. But the exemp-
ton puts q weapon into the hands Of the
enemies Of the Government in the coming
days, when taxation bears hard IN the
people, and Reputation shall be thought
Of by demagogues. We create a grel 1t
class OF untaxable property against viii h
It will be very easy, in seasons Of business
and labor depression, to excite jealousy and
indignation. True, this property will have
already compounded for its taxes, will be
paying them, in q sense, year by year, in
having but 8 per cent. interest instead OF
6, but it will not always be easy to make
this apparent; and holders Of exempt
government securities and the friends of
honest debt.paying will be constantly
| placed on the defensive in the political
campaigns that are sure, directly or indi-
i4ctly, to be fought over the questions OF
taxation and full payment Of the debt.
The cry will be so easy to make; there
will be so many who will want to believe
in its justice, 30 many to feel its force and
shut their ears to the explanation, that we
seriously question the wisdom Of exposing
what will be the most intelligent and pa.
triotic side in our future politics to the
burden of such a weapon Of ofense. and
of imposing upon the debt such an instru-
ment for it's own destruction.
We have as much confidence as any.
body in the intelligence and good faith Of
the American people; in the long run, we
believe they may both be implicitly relied
upon; but past experience has shown that
they are not proof against tides Of passion
and prejudice. famed BY the appeals OF
ambitious w~ickedness, and fed, perhaps,
by scarcity Of profitable work set against
abundant and inevitable taxation. Until,
at least, enough intelligence to read q
newspaper is made the universal test Of
suffrage, we cannot hope to be always ex-
empt from the triumphs of ignorance and
class jealousy; and we shall be wise to
give as few excuses or semblances of ex-
cuse for them, as possible. Better pay 6
per cent. interest than weaken in any de.
gree the steady soundness and value Of our
securities, or give a plank for o vicious
platform Of demagogueism and Ignorance
to ride into political power on.