The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1867-09-06
polititaI 8aSing.
FINANCES AND TAXATION.
Speech Of Hon. John sherman, at Canton,
Aug. 20th.

speech 0l AAOus SuAh ctANA-A-A-S -
Aug. Goth.
The following able and instructive expOsi-
ton Of national finances and taxes, was
made by Senator Sherman, in his speech at
Canton, on the Doth inst. -a
FINANCIAL QUESTIONS.
There are some questions not especially
involved in this canvass, but which are very
important. / can only allued to some OF
them very briefly, and chiefly in reply to
what Judge Ranney said to you the other
day. They are financial questions growing |
out the war. You will observe that these
doctors do not agree at all. Judge Thur
man, Judge Ranney and Mr.. Vallandigham,
and no doubt many others talk about debt |
and taxes ard banks merely to excite oPpos-
ition, but the Democrat party have not, and |
dare not, take definite positions 10 any of
them. Until the last ''nigger" is exhausted,
they will not meet fairly these great ques-
tions. Judge Ranney is opposed to an in
crease of paper money while Thurman
wants to pay off our greenbacks, or mere
rags as he calls them, and VallandIgham is
| in favor of paying the whole dept by an Is
sue of greenbacks. The question with you
will be whether the Union party, which Is
cess of our financial measures, can best solve
all new problems as they rise, or whether
the public credit can be safely committed to
party that during the war, did all they
could TO destroy our credit. Let US look at
some of these matters. They talk of our
large public debt. Very well, our debt IS
large, but what caused it? A Democrat re-
lbeiliou. We had 10 choose between great
| war. with its inevitable incidents, debt and
Taxation, or, on the other hand, the over
Thrown of the National Government. The
Union party preferred war, debt and taxes
to disunion. Did the Union party unDeces-
sarily increase the debt or impose unequal
or unjust? On the contrary, our financial
measures were as successful as our military
/ measures, while all the efforts Of the Demo-
lcrat party impaired our credit, made it diff
fcult to negotiate loans, prolonged the war
and increased the debt And now that the
war is over, what party is likely to increase
{ the debt? We have the fact before US that
the Union party has not only prevented an
increase of the debt, but its reduction has
been steady and rapid On the 3lst day OF
. August, 1865 it was s., ,S03,6o6. On the
, first day of November, 1866, it was 81, 53l,
424,I21, or reduction of $2O6,379 300: On
the first day of August, 1867, it was $2,5ll :
| l,1lf l.t1,
: lin less than two years. And during these
3 two wears we paid off besides an immense
i amount of floating debt, the debris of the
| war. Suppose the Democrat party now in
r mower. who does not know that the debt
would be largely increased. The only DEM
ocrat States, Kentucky, Maryland and Del
D aware, are now demanding untold millions
/. as pay for their slaves. Every Democrat is
: committed to their payment. All over the
: South they are pressing claims for injuries
O. o1duripg the war. A Democrat Congress
e would grant them all. Nearly every Demo-
s crat Senator and member has committed
u himself to principles which, if once adopted,
n will add to your debt five hundred to one
u thousand million of dollars. For this rea-
r son they exaggerate the amount of the pub
d Lie debt. Let US see what it is. 1t is audit
o ed. and we know to dollar the amount.
!. I read from the last official statement of the
ir Secretary of the Treasury. The aggregate,
e debt, less cash in hand August l. was 81
e I5I4 ,3O64 436, but of this $391, 1858 is IN
N Igreenbacks and fractional currency not pay
d ling interest, leaving the interest-bearing
10 debt 81, ia, 100000. Now, if had my way
This debt will not be increased one dollar or
anv pertext whatever, but will surely anC
a gradually be paid of.
N 1t is said that this debts not subject to take
ar and that this discrimination is unjust to 9th
y er taxpayers Now, this debt as property
e or income held by our citizens is subject Il
ID taxes by the United States. Congress ma.
y impose taxes on it, as it does on other pro
nerty or income. These bonds are now pay
Is inc income.tax, but it is not subjectto Stat
Ill tax. This is true but whose fault is it5 DI
the Union party make this exemptlonf NC
cd at all. 1t was made by the Constitution
the United States, for which our Democrat
ou friends, when it suits their purposes, proie'
US such profound deferency. The Supreu
Us Court of the United States, as early as lol
pm decided that bonds of the United States al
not subject to or under State authority
IThis decision has been followed in mutt
AR tude of cases since. 1t so happens that ever
'ut Judge that has sat on the Supreme benC
rK, from 1919 to this time has had this questlC
en- before him, and each one concuTs IN II
i same opinion. The principle is obviou
ar that the power of Congress to borrow nom
IL is paramount, and cannot be taxed OF lnte
OF fered with without destroying it. To sllo
out a State TO tax national loans may enable
II State 10 prevent the nation from borroWll
at- money, Now, these decisions are well know
uc- TO as good lawyers as Thurman and RaDne
ur hut, instead Of stating them fairly, tht
put blame the Union party for exempting 4
ms bonds. while all United States bonds ha
ul' been exempt from local taxes since the toun
alton of the Government. by the Consit
we'd t;on itself. and this has been scquiesced
ped lUn ..1, ID Jr,in;strai;on. Including the
our mocratic. The first loans during the "
Contained no reference to this constitution
exemption, but in subsequent days, aite
recent decision by Judge Taney, IN -Dece
Der, 1862. that United State bonds sho'
ted not be taxed, we inserted declaration
the lone of our loan laws, that United Sta
llet bonds we're not taxable by or under st
authority. This did not change the Ia
,rk, but simply declared 1t. In view OF !
ern very question, and of the certainty that WI
and ihe war was over our restored credit wo
has enable us to borrow money on more tavo
bic terms, we always keep In view IN lssu
tho bonds the principles OF 'redeemaoility,,
toe the pleasure of the United States on SD
es, time. This was a fixed policy of your
Ites1 apcial agents. This is the reason Of y
zap ive-twenties and your ten-forties.
United States may pay off any portion
al our debt within short time, either by ia
and or by borrowing money on more iavera
Is terms. Nothing now stands 10 the way
acts cent The Treasury notes knows as the sew
cul- tb;rties. which will be soon convert
When this is accomplished the v hole pu
srn ldebt is in the most favorable shape, and 4
mon from time to time be funded at lower
;erfs of interest, and so as to adjust on condIti
cted proper and right both to tax payers
ent, nublic creditors, the question OF taxat
have If we can sell them, we can issue bonds
ness pressly subject to State taxation, and
the proceeds pay off our outstanding boz
ords "a thew accrue or we may, and whlc
btv. think is far better, retire our present DC
I,1s with bonds at lower rate OF interest bt
,eck lin the nature OF national tax on GoV'
- mont securities, But, fellow citizens,
> to these arr angements must be upon the
Ill lof the strictest observance of the pu
10 of faith. National credit is our only relianc
lime of war and peril. Debts can not be
forced against nation by courts of law,
ater- rest only upon honor and faith We cal
aidz, afford to tarni,h these. All that may be {
great consistently with these 10 tighten our
were deps will be done by the Union party,
per- the malignant whisperings Of Copperhe
1red who talk about taxes and debt, are inter
Iseen I only to prepare you for repudiation and
honor.
:, Now. there is good deal sad about
u N National Banking System. As this
loVei' creation of Congress, the right to chang
htry, modify it is expressly reserved. Their
~ Is to issue paper money rest only upon the
q ~. sent of Congress, and that consent maj
'ntric withdrawn whenever the pubic int
enan' will be promoted by it. Let US see
y oe' this system stands. The only prlvll
eIVl- National Banks have from the United 5
eu 70 is the right TO issud guaranteed by the
4sseu ed States. To secure this privilege