The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-04

Of violating N agreement undsr which previous
would be NO way in which the bonds rsdtsmabls
could be paid - hes been proposed, except by
ns "neA g
paid In coin converted into coin bonds rspudsied.
as q .n o sVs
nation that has tried prove Il 20 be neither udicous
nor profitable A the paper circulation o. tho country
every addition TO IT. and. by the distrust thus created
~ depreciation would doubtless be Ia greater ratio
which they would be added It 10 not much 70 say
that an additional Issue OF nve hundred millions OF
United States notes would reduce the seven hundred
o on.nsr PRESENT. ssu. sSss
legal tender note or . national bank note. now
worth more than ,hiriy-avs per- cent u eve. ven
the apprehension Of further issues did place II on
Ion The bonds would Of course decline in value with
the In which they would be payable Can any
one seriously propose deprecas il not to render
any one. knowing the effect which suoh ssue would
have upon tho government bonds. upon the Currency
now afoat upon business upon credit upon the public
morals seriously advocate such . measure. not -
matter Of necessity but anticipate the payment OF
proposon exposes lie wicssds When fairly con-
sderod cannot fail 70 DO stamped with universal
dsmoston; proposition ,, that the people Of the
gatoas shall By their own deliberate act rob and ruin
Shsmsslvss and At the same time the nation with
indispensable and insnacsable disgracA
In opposliicn 70 al such sxpcdsnis for paying, or
rather FOR getting rid Of the public debt the upright
= Ss % s
Ing with which creatsdthe policy Of approaching
the paper dollar ensil 4 shall represent dollar 10 coin.
Of giving stability to busne and assurance 10 enter
prss, and wiping from the country the sproach that
rests upon By reason Of The low price Of 10 securities
ssntativss he Secretary has sns fullest oonndsncs
%
utes for tho measure Of their liabilities II there shall
be such nations The republic q he United States will
suffered By the actual rspudiaslon Of some OF
the States and the virtual rspudission Of others;
more than quarter Of century hes elapsed since this
stigma was liked upon Americas credit II 10 suffering
alone Of ali the States have continued 70 pay shs
terest on their bonds IN coin Bus although u has
suffered and z si :u:Ds from The bad fai.h 2. i.ss
10 unsulisd Il has committed tho mistake Of making
it, inoonvebls promises legal tssdss but 10 has
hands Of the holders valas Of s securities o. violate
IT. engagements BY covert sspudiasoa 10 the darkest
Of IL oontracls Shall fAssr when ~ ability 70
pay to tho uermost farthng even Without oppressive
TAXATION TS. cannot % So esq o, - ~ a,.
States 70 their proper relations with The federal
ernment cannot be ovsrsstimatsd 4 curtailmsnt Of
the currency and the maintenance Of the public faith
not al that 10 required to restore the country
feet financial health. We need in addition 70 these
united counuy-unitsd insfacs - well in name. II
may not be proper for the Secretary, this report
discuss tho measures regarded By him AZ best calculated
ever he feels IL 70 be- his duty 10 say q he snbss
tally said IN his last years report that the question Of
reconstruction. a. purely financial question, H. In his
udgment second in importance 10 that Congress
Will ever be called TO consider The great staples
Of the South have for many years constituted large
section at the close OF the rebellion the foreign
changes would have been 20 largely against
would have been imminent, II not unavod.
able. Even In the depiorablc condition OF these
consisted Of their productions and the crop OF
present year small though IL be, that Ia
from ruinous indebtedness to Europe. II ID Of tho
greatest moment therefore, that tho productive power
Of the Southern States should restored rapidly
possible Little progress has been made in this drcc
be made until their political condition 10 determined by
their restoration to the Union with all the rights and
privileges OF other states under the constitution The
Secretary does not aude 10 this subject FOR the
Of calling the attention Of Congress TO IT, This Is
necessary 1t absorbing the public attention. and the
watched by the people with Intense solicitudc Upon
the judicous settlement Of II depends, In great
the Secretary upon this subject In his last report
equally appropr ate At the present time
following language regard by tho States Of
government obligations
view Of the fac. tina. the exemption Of governmsn,
sidared unjust discrimination in favor efforts
r. mi sSs
state and municipal aviation o. bonds and secrilss
q +. ssss
%sn .9d Z TSSld Inc not only 3
Consross 70 grant he states the which they WI
Of imposing o. ke rnea
woaa result 1sis serious:
iai proportion Of the burden OF The pssi.c debt s
Pss.ss: S:Vss pun. S.s
public securities are to be subject 10
sss & hs IN ana s
ao s s s %a. g me
be the people except in some favored To-
opprs.svs and render sse pros.
ss
next four ss funded HON. Is. Than .ss.
70 have their burdens thus II s eYan @
The relief which local tai payers would obtain from
nations. :scur!Is: would least s.ss
q The eIe@ptoa % sscuriss Wills
ss4 . TSsn Ss = 81 suesn 2 secure
would long where those taxes c,ud reach iSsn
the Of and Z $ & s *. tas unto
alton. y -A''''
The views Of the Secretary, thus expressed, have
Of any kind Of properly, BY which special privileges
are Or seem 20 De granted 70 any class Of citizens
odous 70 tho heavily purueneo masses IN all eountres,
and 10 especially so Ia republic like oura Local
taxes In tho States heavy and no matter what
tho law may say upon the subject no matter what the
contract may have been under which they were ncgot
atcd, there 10 general continent among tax payers
that the exemption OF government bonds from local
taxation % not exactly right and that ought 70 be in
way avoided In future issues Tho secresry las
no hesitation iu admitting that hs IL In svmpaihy
with this sentiment The difficulty In the way.
however, - has been suggested, arises from the fact
that bonds hereafter TO be issued were to be- subject 10
local taxation, very few would be held where are
high, and there would DO constant tendency To con-
esptrAtion OF them IN States and counties and cities
WARE aSss low. or In foreign countres where they
would escape taxation altogether II 10 Q matter or
great importance that the government bonds shoud DO
desirable investment in all parts OF the country and
oeviods that The States should DO In some manner
COMPENSATED for tho right now denied OF taxing them
~ other kinds OF property taxed After vpg the
subject careful consideration the Secretary can suggest
no better way Of doing - than by OF bonds 70
be kLown the consolidated dobt OF the United States
bearing six per cent interest, and having twenty
years TO rus, into which all othor obIieatious of