The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1866-09-13
Taxing Government Bonds.

| Demagogues fearing to meet the true
| issues before the public, take refuge un
! der false and irrelevent questions, to
| blind and confuse the people. A favor
ite hobby is the subject of the taxation
of National bonds and most desperate
| appeals are made to the public prejudice
on the score OF the exemption of a large
portion of wealth from taxation.
/ Government bonds issued during the
war under a condition that they should
not be subject to taxation, ought not to
be taxed The country at the time the
loan was made was in the most straight
ened circumstances To obtain money
unusual conditions were necessary to in
duce the public to buy the bonds A
large rate of interest and exemption from
taxation were pledged Will any honest
man, now recommend the reputation of
any of those terms, under which the
bonds were sold? If one condition may be
repudiated, another and all of them may
and the Government, with equal justice,
might refuse to pay the interest and ev
en- the principle of the debt The cry for
| taxation is reputation, and is the first
step towards invalidating all the obliga-
tions of the country.
But the bonds cannot be taxed ev-
|
| so.
The bonds are in the hands of pur-
| chasers who bought under the condit-
| ions of their issue What power can an
nul the contract? More than thirty years
ago the Supreme Court of the United
| States. in Democratic hands. decided
that the bonds issued by Democratic
| Congress could not be taxasl Whence
comes the power to tax bonds issued in
| 1868?
Between 1790 and 1851 more than fifty
acts were passed by Congress authoriz-
ing the issue of boads, but never in 4
| single instance were they made taxable
| by the law, nor taxed. Democratic com
| plainants about the non taxation of bonds
now. say the Democracy has directed
| the Government for the last seventy years
with intervals Then, attention should
be directed to the great commission of
the party to tax Government obliga-
| tions.
In 1916 Democratic Congress author
| lied loan for Mr.. Polk of $4,000, 900
not taxable for State or municipal pur-
poses.
In ls47 the same Congress author
| lied another loan for President Polk,
of S23 900, 900, and no attempt was
made to make the bonds liable TO taxa
| ton.
| In 1913 a Democratic Congress is
sned another batch of bonds amounting
| to SIC, 600 900, and they were not made
taxable
In 1858 Democratic Congress author
lied the issuing of bonds to the amount
of 20. 900, 900. :or the use of Mr.. Buch
/ anan, and there was no talk about taxa
/ ton.
In 1860 another issue Of 52l 100000
was made under Buchanans administra-
ton, and net made taxable.
In February 1861 still another issue of
bonds was made by the same Congress,
amounting to SIS 900 600, and made ex-
empt from taxation.
During ali these transactions Demo
Gratis were silent about taxation be-
cause the loans were used to carry out
their own favorite measures and to ad
vance their peculiar political objects.
The bonds issued during the rebellion
were used in conquering the rebellion
| They were used in a manner distasteful
| to the ruling spirit of Democracy, and
thev arc now attacked to bring them in
to disrepute and finally discredit-
1t is plain then that the contract made
| with the purchasers OF the ponds should
not be impaired by the acton OF the
/ Government-one Of the parties in the
contract, without the consent of the oti-
+ er-
The bonds cannot be taxed as is shown
by more than one decision OF the United
/ States Supreme Court, under Chief JUS
tees fancy and Marshall, who held that
hostile legislation of States might arrest
the action of the general government and
destroy its powers
Democratic Congresses have issued
millions Of bonds, not taxable, and Dem
/ ocratic politicians have made complaint
about it--Logansport jour.