Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1866-05-11
GGldtrbmau & Stair Journal.
BY E.P. WALTON.
MONTPELIER. MAY II. 1903.
WANTED-A POPULAR LOAN.

! WANTED-A POPULAR LOAN.
We are glad to see the Boston Advertiser urg-
ing Congress to give the country Consolidated
Loan that shall not be exempt from just taxation.
Vermont is as patriotic state any other; her
people can and will bear as much as anybody TO
carry ont the obligations Of the Government in
good faith but we are sure the exemption OF u.
/ S. bonds from all taxation is felt by them to be
both unreasonable and unnecessary Nobody has
a right to complain. and nobody will complain. If
Congress protects U S. loans from improper tax
alton by the States or from any state action to i'm
pair the credit Of the nation, or embarrass its
finances and that is enough. The Advertiser
says.
We have for some time looked for a proposition
respecting the consolidation Of the public debt to
which Mr. Shernas has now asked the attention
Of Congress. We confess, however, that we feel
some surprise at the view which that gentleman has
been led TO take Of the subject We had antci-
pated a movement for the consolidation and con-
version Of the debt into an issue which should be
on the same footing with other property with res
pect TO taxation, but not for one which should
complete the exemption Of principal and income.
Least of all after what has been said AZ the sup
posed conflict of interests between the different
sections on this point had we expected that
proposition like the present would have come from
the West That it has come from that quarter aud
not from " the capitalists Of the East who fig
ures so largely sometimes in harangues from the
stump, is fact which we shall try to have remem-
bcred.
We trust that this subject will not be disposed
Of without a fair consideration of a proposition
which has'sometimcs been suggested and which is
the converse Of Mr.. Sherman's--to have the gov
eminent obligations rs fast az they come within
the ffh
yerted into an issue which shall have no special
exemption. It will be objected TO this by those
who favor Nh Sheman's plan that the exemption
is intended 70 save the government a large sum in
interest. This gain, however, is in part at least
illusory for It is made at the cost of sacrificing an
income tax, the amount Of which the people must
supply from some other source That is to saw
the change which Mr. Sherman proposes is simply
that the bondh lders shall take FIVE per cent, in
stead Of taking xix with the liability to pay taxes
which the theory suppOses to be equal TO one per
cent. The gain in this exchange will not be large
on the side Of the government.
On the other hand, it is contended by some that
conversion Of the bonds into an issue which shall
be liable to taxation with other property need not
cost the government any considerable increase in
annual interest. For our own part we are not at
all certain that it need TO, II the bondholders fairly
CONSIDER the question as TO the security OF their
property affected by the inyidious distinction at
present made in its favor. 1t is delicate subject
on which TO touch, but we believe it to be a fact
which will be patent TO all before many years are
past, that most unfortunate element of unpopu-
larity and hostility was imported into the orgau-
cation Of our public debt, when it was placed be-
yond the reach Of taxation The exemption is
now sacred obligation it was part fthe orig
nal contract, and had its part in setting the con-
sideration received by the governments but
whether il may not be wise, in favorable condit-
ion Of the money market TO substitute a new con-
tract by agreement emitting the unpopular feature,
is question which may be worth considering.