The Lancaster gazette. [volume] (Lancaster, Ohio) 1863-1886, 1867-09-12

queSIlOn QeIOre MIN, aHu cach one
concurs in this same opinion. The
principle is obvious that the pow
er Of Congress to borrow IS para
mount and cannot be taxed or in
tcrfered with, without destroying
IL.
To allow State to tax national
loans may enable a State to prevent
the nation from borrowing money.
Now, these decisions are very we'll
known to as good lawyers as
Thurman or Ranney, but, instead
Of stating them fairly, they blame
the Union party for exempting the
bonds, while all United States
bonds have been exempt from To-
cal taxes since the foundation of
the Constitution itself, and has
been acquiesedin by every admin
istration. The first loans during
the war contained no reference to
this constitutional exemption, but
in subsequent laws, after a recent
decision by Judge fancy, in De-
cember, 1862, that United States
bonds could not be taxed, we in
serted declartion in one of our
loan laws that United States
bonds were not taxable by or un-
der State authority. They did not
chdngetho law, but simply declared
the law.
In view Of this very question,
and ofthe certainty that when the
war was over our restored credit
would enable us to borrow money
on more favorable terms, woalways
kept in>view, in issuing bonds, the
principle of "redeemabilityp at the
pleasure of tho United States, in q
short time.
This was the fixed policy of your
financial agents. This is the rea.
son of your 5 20s and 10 40s. The
United States may pay off any por-
tion of our debt within q short time,
either by taxes or by borrowing
money on favorable terms. Moth
ing now stands IN the way except
the Treasury notes known as the
Z 30s, which will soon be convert
ed.
When this process is accom-
plishod the whole public debt is
in the most favorable shape, and
may from time to time be funded
at a lower rate of interest, and SO
as to adjust on conditions proper
and right, both to tax payers and
thepublic creditors, Oh the question
of taxation.
If we can sell them wo can issue
bonds expressly subject to State
taxation, and with the proceeds
pay off our outstanding bonds as
they accrue, or may-and which |
think is far bctter--retire our pres
ent bonds with bonds at q lower
rate of interest, the reduction of
interest being in the nature of u
national tax on Government sccur-
tiles,
But, fellow citizens, all these ar
rangcmonts must be upon the ba-
sis of the strictest observance Of the
public faith. National credit is
our on.y reliance in times of war
or peril. Debts cannot be onforc.
cd against a nation by courts of
law, and rest only upon honor and
faith. We cannot atfordto tarnish
these.
All that may be done consist
entity with these to enlighten our
burdens, will be done by the Union
party; but the whisperings Of Cop
porhcads, who talk about debt
and taxes, are intended only to
prepare you tor repudiation.
| Now, there is q good deal said
about our National banking sys-
tom. AS this is q creation of Con
gress the right to change or modi
fy it Is expressly reserved. Theil
right to issue paper money rests
only upon the consent of Congress
and may be withdrawn at any
time.
Let us see how this system
stands. TO secure the privilege Of
issuing notes tho banks must de.
posit with the Treasurer of the
United States Government bonds
exceeding by ten per cent, the a
mount Of their circulation, thus
furnishing a stable market for oul
bonds. They must redeem theil
notes at their counters and at cen
tors of redemption, thus furnishing
u convertible currency. They mus
keep on hand in United States
money or greenbacks about % pei
cent. of their circulation as dc
posits. Thoy must pay heavy tax
es to the United States, amounting
last year, to s8,069,95S, and to all
the States amounting to over sl1
millions more: All their interests
are interlaccd with tho credit o
the National Government. They
absorbed and took tho place Of thu
State banking system, which was ut
terIy destructive to the nationa
credit during the war, which furn
ished q currency without security
and which the United States coul,
neither receive nor pay out.
They arc convenient agencies il
collecting the revenue and promo
ting exchanges among our people
If these reasons are not sufficient t,
sustain the system, then it will tall
and swarms Of State banks viii
spring up again.
By adopting this systom, we alb
sorbed or drew out of eXistenc'
! State banks whose aggregate cir
culation was slS0,000,00O, whicI
1 paid us no taxes, rendered us NJ
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