The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1867-10-12
The FimanciaiVssues.

S w said two or three days age, that "ue
uenocratic party is committed to an excessive
and unlawful taxation of government Dol ohpp''
a to the payment of the principal IN paper '""
to consequent expansion OF the currency
and postpopement OF the return TO specie pay
meDtsr We gave some reasons Tor entertain
ins tbis belief Yesterdays Argus declares
viii am Indignation which scorns grammatical
nronrieties that athe above is unadulterated
auptruths" If the Argus eau successfully de-
fend its party from the reproach which the
Pendletons, Smarts and Pomeroys are bring
ing upon it, we shall be glad to hear that de
fence. Questions of finance are not questions
on which parties ought to divide We should
be glad to believe that the Democratic party,
satisfied with its disloyal attitude during the
war, would hesitate to array itself once more
on the side of national dishonor.i But if dein-'
agogues, without power and without responsi-
bility, choose to attack the national credit and
by false representations raise party IN FAVOR
OF reputation, we must meet Them The par
I'D ty which has the power and has the response
blity may be compelled to accept false and
mischieyous issue which ought not to be raised
atall. ..uuaD4 .,ltsfii-sJ h'it'1 bu-
We said that the Democratic party is com
mitted to an ereessi0e and uala,cful taxation Of
government bonds. Which of these words does
the Argus challenged? The Democratic party
flvors the taxation of the bonds either by Con-
gresss, or by State and municipal authorities
Those Democrats who favor taxation by State
and municipal authorities favor an afaIa,otul
taxation. Since the foundation of the govern
ment the uniform doctrine of the courts has
been that under the constitution no tax could
be laid by any State, still less by any mn
nicipality, upon United States stocks. This
question arose and was settled long before the
rebellion was naue urated.l The leading case
" McCulloeh VS.. the State of Maryland" was
decided by the Supreme Conrt of the United
States in 1919. Indeed the proposition to inn
pose local taxes upon United States securities
. is So plainly unlawful, that the Argus some
time since abandoned it and declared in favor
oftaxation by Congress. But the bonds are al
ready taxed by Congress. The income tax is
assessed with perfect equality upon oil citizens.
F'ioe per cent of every mans income, beyond a
moderate provision for the support of his fami-
ly, is claimed by the government under the
laws of Congress. Income from government
bonds is not exempted but is spe.
caly included in the returns d O
the assessors of internal revenue. "a Al
g. additional, special tax on these bonds,
discrimination against them, would in our opin
ion be exceedingly unwise Is it the part o
prudence for government to depreciate it.
own securities? Yet that is what we under
stand the Argus to recommend, and those
Democrats who adopt this view are unques.
tionably in favor of ercessioe taxation of gov.
ernnient bonds. If as the Argus says "thes.
is iunadalterated untruths' we shall be glad Il
be set right. If on the Contrary they are sim
pie statements of fact, elementary finaneia
truths, what can any body expect to gain b,
contradieting them2 The Democratic party a
Chicago four years ago voted the war a fail
ure; are we tObelieve thatthe same party is nov
going to inangnrate another presidential cam
Hlign by d"resolving" that two and two max,
fiye2 ia s4Hls,eiTlItai stt 1i isseia2tR 3sf lot