Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1867-12-25

way uOWeVeH as mas D6eu 5uebS9boN,
arises from the fact that if bonds here
after to be issued we're to be subjeet to
local taxation, few would be held where
taxes are high, and there would be
constant tendency to concentration OF
them in States and counties and cities
where taxes are low, or in foreign coun-
tries. where they would escape taxa.
ton altogether. It is a matterof great
importance that thegoVernment bonds
should be a desirable investment I in all
parts Of the country, and it is obvious
that the States should be IN some man
ner compensated for the right now de-
MED of taxing them, as other kinds OF
property are taxed. After giving the
subject careful consideration the Secre-
tary can suggest no better way Of do
ing it than by an issue of bonds to be
known as the consolidated debt of the
United States, bearing six per cent in
terest, and having twenty years to rur,
into which all other obligations of the
government shall as rapidly as possible
be converted ons-sixth part OF the
interest at each semi-annusl payment
to be reserved by the government and
paid over to the States, according to
their population. By this means all
the bonds, wherever held, would be
taxed alike and general distribution
of them be secured. State taxes in
eluding the levies for county and mu.
nicipal purposes, now, as 8 general
thing, exceed one per cent, but when
the debts incurred by bounties are
paid, land in most of the States they
are already in the process Of extinct
ionl and economy is again practiced II
the administration of State affairs, thii
1 indirect assessment will be quite likely
10 equal the tax assessed upon othel
property. IL the debt to be funded
Shall amount to $4,000, ,0OO. .OOO, th'
amount to be reserved and paid to tht
State annually would be S2O.OOO,O ,OOO
which would give to each of the States
in gold. as nearly as can now be estl
mated, the following sums to be redu
ced, of course with the reduction o
the debt -
Here follows table, showing tn
amount each State would reeeiVe:--
Ohio's estimate is s., ,449, 500; Pennsyl
yania SI,783,647 New York, S2,30l
S25 Illinois, 1900, ,S92; none OF tn
others reaches one million.
The advantages to be derived iron
this plan are so obvious as not to II
ouire discussion. 1t would secure, q
has been already stated, such a distr
button of the bonds throughout tn
State and counties and cities as coul
not be expected if local taxes shoul
be imposed upon them. 1t would cr'
ate an interest in States, the people
which are justly responsible for 70
debt, but whose early and complei
restoration to the Union is so desirabl
and important, and would give to thel
, needed aid in their efforts to build u
again their own PROSTATE credit.
} would put an end to all discussion an
doubts in regard to the kind Of currel
, cy in which the bonds are to be pslt
to all complaints of exclusive priVileg'
: and place the public credit on q bas
} worthy a nation whose resources, youn
as it is, are second to those Of no otl
er nation, and of whose resources th
: present are but an indication
, The bonds, the issue OF which al
thus recommended, would be six pt
cent TO the government and fve pt
cent to the holders, which IS as low
rate of interest as can be expected
} prevail in the United States for man
years to come. Of the practicable
of converting the outstanding obhg
tions of the government into the col
solidated debt at an early day, at n
considerable expense, the Secretary 81
} tertains no doubt. E
It is, therefore, respectfully recon
mended that the act Of March Sd, I86'
be 80 amended as to authorize the Se'
retary of the Treasury to issue SIX pt
/ cent eold-bearing bonds, to be know
as the consolidated debt of the Unite
| States, having twenty years to run an
) redeemable if it may be thought adv
sable, at en- earlier day, to be exchani
, ed at par for any other obligation
: the government; one-sixth part Of tn
; interest on which, in lieu Of all otht
: taxes at each semi-annuai paymeT
: shall be reserved by the goTernmer
: and paid over to the states accordin
to population.