Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1867-10-18
The financial Issues.

We said two or three days ago, that tho
Democratic party is committed to an eX-
ccssive and unlawful taxation of govern
ment bonds. to the payment of the princl-
pal in paper. and to Il consequent cNpan-
sion of the currency and postpaAement OF
the return to specie payments. > Negave
some reason for entertaining this belief
Yesterdays dTgaS declares with an ndig-
nation Which sc0rnS grammatical proprie-
Ties. that 1.-THE above is unauthorized un-
truths : Ii the -Argas can successfully
defend its party from the reproach which
the Pen1lefoas, Snarts nd Pomeroys are
bringing upon it. we shall be glad to hear
that defence. Cues ion of finance are not
questions Oh which parties ought TO divide.
we should be glad to believe that the
Democrats party, satisfied with its disioy-
nj attitude daring the war. woud hesitate
10 array itself once mere on the side OF
ua iofiI iii ,honor. Bat il demagoTueS
without power and without responsibility,
choose to attack the national credit and by
false representations raise party III favor
of reputation. we must meet them. lie
parry which has the power and has the re-
spoasi5ilty may be compelled 10 accept
fiIsc and nischievous Issue WHICH ought
not to be raised at all.
We said that lhe Democratic party i
alton of government bonds. Which Of
these words does the ifYHs challenge! =
The Democratic party iaNors the taxation
of the bonds either by Congress. or by
state and municipal authorities. Those
Democrats who favor taxation by State and
municipal authorities favor Al! HHiqlrfal tax
alton. Since HE found 1ion Oft c COVERT
ment the uatorn doctrine Of the courts
has been that under the CONSTITUTIONS tax
could be laid by any Safe. sill less by any
munieip;tli Y, upon | nited States stocks
hi. qIc> ton arose and was etiled long
before ihe rebellion was ilangnrated.-
The leading case. " McluAoch V. the
state Of Ndfyland. = WAS decided by the
supreme Court OF the United States in 1919.
Indeed the pI opposition 10 impose local tax
Is upon United states securities IS SO plain
iv unlawful. that the Argus some time
since abandoned 1t and declared IN favor
OF taxation by Congress. But the bonds
are already tared BY Congress-. The income
tax is assessed with perfect equality upon
all citizens. Fire per cent. OF every maH's
income. beyond moderate prov sion for
the support OF his family. is claimed by the
government under the Laws of Congress.
Income from government bonds is not ex-
enpted but is specially included in the ,e-
turns of the assessors OF internal revenue.
An additional. special tax on these bonds.
a discrimination against them, would in or
opinion be exceedingly unwi>e. l. it the
part Of prudence for a government TO de-
preciate its own securities: \ ct that i
what we understand the Argus TO recom-
mend. and those Democrats who adopt tli,
view are uuquestiouahly in favor OF crceSS-
| ire taxation OF government bonds. If i,
| The Aryes says, " these is unauthorized
untrutiIs. > ne shall be glad 10 be SCI right.
I If on the contrary they are simple state
ments of fact. elementary financial truths.
what can any body expect to gain by cor
tradicting them: Tie Democratic party
at Chicago four wears ago voted the war a
| failure: are we to believe that the same
party is now going to ina1gurate another
presidential cImpaign By resolving that
! TWO and two make five?