New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-12-18
WORK. WEDNESDAY, DECEMBER IS, 1867.


lated under pretense Of diminishing the public burdens
Every increase Of legal tenders impars the value OF
we may violate any other part Of the contract:
Your Committee therefore dismiss as inconsistent
tie public debt in legal tenders by increasing their vol
ume beyond the sum Of siOOoOoOo The surplus revenue
as IA now daily done by the purchase Of our secu,
rifles IN the open market Your Committee are satlsned
in the bill herewith submitted, will redeem the nye-
twenty loans they become redeemabe, with large
saving to the public Treasury and IN strict accoiuahce
" On the public engagements. .
In the new loan your Committee deem It essential to
aln5t the question Of taxation, state and National Oh
the public securities
The exemption OF these securities from State and scal
taxes has been the subject Of widespread complaint ana
irritation. 1t is difult to reconcile the duty OF the
United States to preserve unmpaired its undouDted
reasonable demand that all property shall bear its just
proportion Of taxation Our Committee can only claim
that th9y have given the subject the most careful con
sdeTaOD, and submit plan as free from objection ~ any
that has been proposed. The exemption OF pubic Sc.
grows out OF the provisions OF the Constitution OF tho
United States which secures TO Congress the power TO
which cannot be affected or limited by the Of any
State local Government In the absence OF any legs
state levy upon money invested in any public secu,
rty any tax or assessment whatever on the ground
that such is inconsistent with the power OF Con
gress to borrow money. II a State may tax security
Of the United States 1t may entirely defeat power
ment. These decisions have been SO often
repeated and gre founded upon reasons 50 f983G%ye
uo1al law. IL Is true, Congress may in negotiating
loan reserve to the State the express power to levy taxes
on would become part OF the contract and would be
valid stipulation. The effect Of State taxation would
no public securities would be held THIS would be esec-
Tally large cities, now the best market for our sec
rites and where local taxes often amount TO per cent
With such provision loan could be negotiated except
such rates OF interest would add largely to the public
burdens IL has been proposed to limit state taxes TO
per cent but this IS discrimination as laDle 10
objection as entire exemption, and yet would add to
FlruttI
would not meet the local demand Tor taxes LOT local
purposes Your Committee are therefore OF opinion tat
il would not be wise in Loan law TO waive the Consttu-
tona right of exemption Of Government securities from
state taxes but that all property protected ny state OF
plainly the demand OF justice and pubic policy,
that your Committee deem i wise, to reserve
hereafter negotiated and distribute this among the
States according their population The amount thus
amount that would be collected by the states from the
capital loaned to the Government From the nature OF
public securities, being easy OF conceaimeht rcauiy
ranseren, deposited out Of the state II Is Pro3a3e
that but small portion would be reached dor ior
taxation, while the mode suggested WOuld secure
each state fixed sum, collected without eA,
peuse, and without surrendering the power OF
the National Government its loans or lmpedng the
ready transfer of the public securities IL Is objected
that the distribution is not Just to the states WHOSE
replied that better rule Of distribution can be pro
posed, and the advantage II any Will accrue 10 tne
Younger and poorer States. where any taxation is more
severely felt This adjustment Will relieve the BOND,
holder from the reproach OF enjoying state Ia" anu
local privileges without contributing TO the
expense and will Increase the demand for
public securities and thus enable the Government TO sell
them al favorable rates. The obvious payment by
the bond OF oncsXth Of his income for taxes and
tho great relief the distribution OF so large the
states will give them in payment OF state debts and the
c"paint now made ly the owners OF real and personal
property. The adjustment proposed III regard TO
n has been suggested that special tax be levied by
Congress on Government securities. such tax would
an other securities as state corporation. personal
Ia sell rf
other securities producing "A fixed income, ana 10 levy
UUn m a succiI burden would not only be an unjust
tk condemned by all writers political economy, not
Hieyc 'luc"ysi.tent with the Constitution Of the
United States, and likely TO be defeated
by the Courts, and the injustice OF such tax is more
u,sIed when he security selected is public security
10 the payment Of which the faith Of the nation Is
T. a. bcntrlize constitutionul ann legal exemption.
an adjustment Of the income tax now levied, your Com
Troceeds Of which with other
provide TO be directly applied 70 the purchase or pay
nent Of the principal Of the dent . ,., A..
Te other provisions Ina regard 10 the loan are similar TO
fho-e Ina cxl sting acts Your Committee deem 10 npor-
taut 10 retain the principle OF redeemaDy altet sn9l
period, thus enabling the Government 10 uS Ilsll vi
favorable state Of the money market by stu inther re
ducng the interest THIS loan VIII secure 10 me Dond
holder new i've per cent annuity PiyapIe PRINT
pal and interest In coin, and redeemable AFTER ten
years. such loan. upon the basis OF inc
present circulation, II IL believed can promptly
be negotiated. Your Committee deem 1t proper 10 pro
vide for foreign loan, to be negotiated at the dserct0h
amount securities held abroad exceeds sOOOO0OO
These mainly coupon bonds OF the lat ISSUE OF INC
Five Twenty loan The interest is payable IN New
York by reason OF which the holders are at considerable
are at considerable expense IN collecting their coupons
The nature these bonds is such that they are aOc TO
be thrown suddenly upon our market by war panic OF
other causes For this markets are uuduy al
fected by fluctuations causedby events in which we nave
no part. IL Is believed loan can now ne made
amply sufficient 10 redeem all the $40 bonds held IN
Eufope al rate OF interest not exceeding i've per cent
and 10 be registered In London or Frankfort so that IL
cannot be thrown upon market AT periods OF alarm
and strngeucy. The exchange is fixed at rate whch
wilmOre than all expense Of Transferring IunGs,
and IN Ia rmOuy with the great system now prop0sep by
The Continental nations, by which the gold coin Of equal
value OF al Christian nations Will De cOnVerupic anu eA
changcable without loss or discount
a. IN LofL has hal te