The Tiffin weekly tribune. (Tiffin, Ohio) 1859-1868, 1867-09-12


eessful as our military measures. while
all the efforts of the Democratic par
~ impaired our credit, made il difH
cult to negotiate loans, prolonged the
war and Increased the debt aud now
that the war is over, what party is
likely to increase the iebt2 We have
the fact before us that the Union par
~ has not only prevented an increase
of the debt, but its reduction has
been steady aud rapid.
On The 3lst Of August, 1865, il
was 2,76T ,S0S, ,636 on the lst day
of November, 1866, IL was s255l,
i2i l2l, or reduction of S206,3T9.
565, On tho lst day of August,
1867, il was S2,5ll ,30S. 1876, OF a total
reduction of sag, ,40T $50, in less
than two years, aud during these two
years we paid or besides an Immense
amount Of floating debts, tho debris
Of the war. Suppose the Democratic
party now in power, who does not
know that the debt would DO largely
increased,
Fhe only sure Democratic States.
Kentucky. Maryland and Delaware.
are now demanding untold millions as
pay for their slaves. Every Demo.
crat is committed to their payment
All over the South they arc prepar.
ing claims for Injuries during the
war. a Democratic Congress would
grant them all. r
Nearly every Democratic Senator
or member has committed himself TO
principles which, it adopted, will add
to your debt ivo hundred to Que
thousand millions of dollars.
For this reason thcy constantly OK.
aggcrate the amount of tho public
debt. Let us see what IL is. It is
liquidated, aud we know to a dollar
he amount.
| read from the last official state.
ment OF the Secretary Of the Treasu.
ry. The aggregate debt, August I,t,
was s2,5l .3O6,43G but ofthis S397,.
1l0,oS Is ia grecnbacksnnd fractional
currency, not paying interest, leaving
the interest bearing debt S2,li4,000,-
900. Now it have my way, this
debt will not be increased one dollar
on any protense whatever, but will
surely and gradually be paid eff.
IL is suid that this debt is not sub
ject to taxes aud this discrimination
is unjust to othcr tax payers. Now,
this debt or property in Income held
by our citizens is subject to taxes by
the United States. Congress may
impose taxes on il as it does on 9th
er property or income.
These bonds now pay income tax,
But it is not subject to State tax.
This is true, but whose fault is il /?
Did the Union party mako this OK
emption2 Not at all. 1t + nude by
the Constitution OF the United States
for which our Democratic friends,
when it suits their purposes, profess
such profound Difference
The Supreme Court Of the United
States, as early as 1919, decided that
bonds of the United States arc not
subject to any tax by or under State
authority. This decision has been
followed in multitude of cases
since.
1t so happens that every Judge
that has sat on the Supreme bench
from 1919 to this tune has had this
question before him, aud each one
cou"urs ia the same opinion. The
principle is obvious that the power of
Congress to borrow money is para
mount and cannot be taxed or inter
fered with withput destroying it,
To allow State 20 tax national
loans may ennble State to prevent
the nation from borrowing money.
Now, these decisions are very well
known to as goud lawyers as Thurman
and Ranucy, but, instead of stating
them airly, they blame the Union
party for exempling the bonds. while
all Uuited States bonds have been ex-
empt from local taxes siuce the foun
dation OF the Government by the
Constitution itself, and it has been
acquiesced in by every Administra.
tion. Tho 6rst loans during the war
contained no reference to this eonsti
tutional exemption, but 10 subsequent
laws, after recent decision by Judge
Taneg, in December, 1862, that Uni
ted States bonds could uot be taxed.
we inserted declaration in one Of
our loan laws that United States
bonds were not taxable by or under
Stateauthority, They did not change
the law, but simply declared the law |
In view of this very question, and
Of the certainty that when the war
was over our restored credit would |
enable US to borrow money on more
favorable terms, we always kept in
view, in issuing bonds, the principle
Of " redeemability at the pleasure
of the United Staies, in short time,
This was a fixed policy of your fn-
ancial agents. This is the reason Of |
your 2Os and l0.4Os. Tho United |
States may pay off any portion of our
debt within a short time, either byY
taxes or by borrowing money on ia.
vorable terms. Nothing now stands
in the way except the Treasury notes
known as the Z 3Os, which viii soon
be converted. jf
When this process is accomplished.
the whole public debt is ia the most
favorable shape, aud may from time
TO time be funded at lower rate Of
interest, and so as to adjust our con
dition proper and right, both to the
tax payers aud the public creditors,
on the question Of taxation.
Ii we can sell them, we can issue
bonds expressly subject TO State taxa
lion, and with the proceeds pay of
our outstanding bonds as they accrue,