Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1867-09-18

| pose taxes on III - II does on other
property or income These bonds now
pay income-tax, but it is not subject TO
State tax. That Is true. but whose
fault is iti Did the Union party make
this exemption ? Not at all. 1t is
made by the Constitution of the Uni
ted States, for which our Democratic
friends, when it suits their purpose,
profess such profound Difference. The
Supreme Court Of the United States,
as early IS l849, decided that bonds of
the United States are not subject to
any tax by or under State authority
This decision has been followed in a
multitude Of cases since. It 80 hap
pens that every Judge that has sat on
the Supreme bench from 1919 to this
time has had this question before him,
and each one concprs " the same
opinion. The principle is obvious. that
the power of Congress 70 borrow money
is paramount. and cannot be taxed or
interfered with without deaifoying il.
To allow q State to tax national loans
may enable State to prevent, the ma
ton from borrowing money. Now,
these decisions are very well known
to as good lawyers as Thurman and
Ranney, bat, insteAd Of stating them
fairly, they blame the Union party for
exempting theb bonds, while ali United
States bonds have been exempt from
local taxes since the foundation Of the
Government, BY the Constitution itself,
and this has been scquiesced in by eg-
cry administration, including the Dem
ocratic. The first loans during the war
contained no reference to this consti-
tutional exemption, but in subsequent
days, after recent decision by Judge
fancy, in December, 1862, that United
States bonds could not be taxed, we in
serted a declaration in one of our loan
laws, that United States bonds were
not taxable by or under State author
ity- This did not change the Law, but
simply declared the law In view of
this very question, aud Of the certain
ty that when the war wa. over our re-
stored credit would enable US to bor-
row money on more favorable terms,
we always kept in view in issuing
bonds the principles of 'sredeemabili-
ty," at the pleasure Of the United
States on short time, This was fixed
policy of your financial agents. This
Is the reason of your iVe-swenties and
your ter-forties. The United States
may pay of any portion Of our. debt
within a short time, either by taxes or
by borrowing money on more favorable
terms. Nothing now stands in the
way except the Treasury notes known
as the seTen-thirties, which will be soon
concerted. When this is accomplished
the whole public debt Is in the most
favorable shape, and may from time to
time be funded at lower rate of in
terest, and so as to adjust on conditions
proper and right, both to tax payers
and public creditors, the question of
taxation. Eve can sell them, We can
issue bonds expressly subject to State
taxation, and with the proceeds pay off
our outstanding bonds, as they accrue
or We may, and uhieh I think is far
better. retire our present bonds with
bonds at 3 lower rate of interest, the
Of interest being in. the ma
ture OF q national tax on Government
securities. But, felIow-citizens. all |
these arrangements must be upon the |
basis of the stTictest observance of the |
public faith. National lcredit is our on |
ly reliance in the time of war and per
4. Debts cannot be enforced against q |
nation By courts Of law, and rest only
upon honor and faith We cannot al.
ford to tarnish these. All that may be |
done consistently with these to Tighten
bur burdens viii be done BY the Union
party, but the malignant Whisperings
0f Copperheads, who talk shout taxes
md debts, are intended only to pre-
pare you for repudiAtioh and Gshon-
Dr.. o. 3. =--g |
Now, there is good deal said shout
our National Banking System. As
this is creation of Congress, the right
10 change or modify it is expressly re-
served. Their right to issue paper mon
y rests only upon the consent of Con-
yress, and that consent may be with
irsWn whenever the public interests
will be promoted BY it. Let us see how
his system stands The only privilege
National Banks have from the United
States is the right to issue notes guar
Inteed by the United States. To se-
,ure this privilege the banks must de
Dosit with the Treasurer of the United
states Government bonds exceeding in
mount by ten per cent. It's circulating
totes, thus furnishing market for our
,onds. They must pFomptly redeem
hese not only at their own counters,
'ut in centres of redemption, thus fur
lishing convertible currency. They
must keep on hand in lawful money
II greenbacks about twenty-6ve per
ent., not only Of their circulation but
f their deposits. They must pay
leayy taxes to the Government,
mounting last year TO $S,069, ,938,
iqnivalent 20 three per cent. on their
They rest entirely upon ;
stional securities, and are, therefore,
he safest. An their interests are in
erlsced with the credit and interest Of
he National Government. They alb
orbed and took the place of the State
Sauk system which was utterly de-
tructive to the national credit during
be war, which furnished currency !
Iithout a security, and which the i
United States could neither receive
or pay out. They are convenient
gencies in collecting the revenue and
romoting exchanges among our peo- ,
lie. If these reasons are not sufficient
D sustain the system, then it will fall,
nd sYarms of State Banks will spring :
p again. By adopting the system, we !
osorbed and drove out of existence |
tate banks whose aggregate eircula- I
on was $50, 600, 900, which paid US !
o taxes, rendered us no facilities, and ]
our financial credit. = We
iAde basis which yields as our eight
iillions in taxes, holds four hundred !
liIions of our bonds, and two humid !
ID millions Of cur legal-tender notes,
{ which one hundred and twenty mil !
ons are without interest. It Is often :
sked. Why not issue three hundred !
lillions of greenbacks, and retire the
ank notes ? Won't we save interest 4
= this? We certainly can do so, but /
e lose the market for a larger amount !
7 our bonds; we must then provide
II the two hundred millions of our le. a
securely retired from circu-
tion in the vaults of the banks, and
Q kill the goose that yields us eight i
illions in taxes. Ny conviction is !,
lat the national banking system
orks well, and should not be tamper- 4
| with, except 10 secure fairer ap- =
ointment of the circulation among =
le States, TO strengthen the security :
quired for circulation, and in time 70 \
axe national centre of redemtion :,
clearinghouse. never was much :.
. bank man, but while such agen-