The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1868-07-31
Tarin0 OMr Osrn Debt.

grace and ruin proposed by the New York
platform. which demands that there shall
be no difference whatever in taxation be-
tween national bonds and other property.
They see that this is notification and re-
pudiaton in one, for Il would enable each
state. acting singly, to override the genera
governments by taxing It's debt, and would
violate the compact under which the bonds
werc sold. But they do not zee why Con.
gress may not, while exempting the debt
from state taxation, lay a special duty upon
it for the national treasury.
A little patient attention will make il
clear that this, too, would bo a wrong !:
though not 40 scandalous violation Of law
and honor as that proposed by the Demo-
cratic Convention.
The United States cannot levy direct
tax upon persons or property, except hy
npportioning II among the States according
to population. Such clumsy method can.
not be thought Of in practise; 80 that the
general government has always avoided di.
rect taxation. e....
Ii taxes manufacturers thus taxing con.
sumers indirectly. II levies license dues,
thus taxing trade Indirectly. II asses'es
percentage upon incomes, thus taxing the
property which yields them indirectly. All
this II can perhaps constitutionnlly do. Tho
goods made, the business carried on. and
the income enjoyed by its own citizens or
upon It's own territory are parts af ils 70
sources, elements Of the national wealth.
Where income must contribute 10 sup.
port the government The income from tile
public funds has no right to exemption. II
is Justly and properly taxed, equally with
income with all other resources. Il is just
as much o part OF the aggregate revenue OF
the citizens, from which the national rev
enue Is drawn, as any other income, and
ought to be taxed just as much and no
more and 30 Il Is Uith our ercise Law. a..
Hut, IL Congress should levy an excep-
tional or special tax upon this kind Of in
come, and should thus lay upon it more
than its equal sllnre Of the general burden,
this would l'e precisely equivalent to an
arbitrary reduction CT the interest OF the
bonds. 1t would be violating the contract
of tho nation with its creditors. The tns
would be no longer an income tax, hut n
partial Reputation ofthe bonds.
So much is true in relation to the citizens
of the United States. But more thnn a
third Of our debt is held by foreigners
The creditors, in this case, are citizens Of
Germany, France and England. The
honds are their property, as much 80 as
their farms, houses or clothing in their own
lands. They have an exclusive right to re.
ceive and enjoy the income from The bonds
in question, rigli, as independent of the
United States government an the right 10
till their soil or occupy their homes.
The relation Of the United States to these
men is not that OF ruler aud subject, not
tina, Of government and citizen; but simply
and exclusively that Of fborrower and lender.
They have lent the United States money.
relying on the promise of the latter TO pay
certain interest for It's use.
By what authority can the United States
tax the citizens OF England. France or Ger
many2 Within those countries, our govern
rnent is but n debtor; superior in dignity,
] credi, and character as debtor. perhaps
TO any mere individual, but still n debtor,
and not a sovereign. 1t has no more right
TO diminish the interest bargained for.
under tho namc Of tax. or under my
other name, than tho New York importer
has, under similar pretence, to deduct
part Of the bill due to foreign shipper.
1t is true tha, the United States have the
power to withhold part Of this interest.
They have the power to withhold il all. So
has nearly every man in business the power
to swindIe his creditors. But neither in
nation nor in private life does the power TO
cheat imply the right to cheut. Aud even
the power Is one which generally brings
UNPLEASANT results when exercised.
There is probably no instance In history
in which national crime has been follow.
ell by reiribution more swift, more Ger
tain and more terrible than such an act Of
repudiation would hiring upon the United
States.
We have nine hundred millions OF bonds
in Europe. II Is sale TO assume that moro
than half would be sent homo in panic,
to be sold for gold, al the first clear ii'dica.
lion that sucl, course would be pursued.
The immediate consequences Of this are
obvious enough.
Gold would rise rapidly TO premium rs
yet unheard of. AL the necessaries Of life
would gradually but certainly follow il.
Our currency would fall 10 merely nomi.
nal value ; and our national credit fail
tuc OWUctsS hot ou'y W tuo OOUus, Uut VI
all debts, public and private, would be ~.
ined; general bankruptcy and wide spread
distress would he the beginning of a long
era Of commercial ruin aud financial unar
chy.
There is no single aim to which national
statssmanship ought now to direct ils ener-
gies moro resolutely than That OF providing
against a European panic In our bonds
Any step which looks towards Mr.. Sey.
molr's platform 10 sure to produce such Q
panic. The taxation Of our bonds would
therefore be, not only % shown above, a
crime, but fatal blunder.
The one sure way to prevent such a nan.
ic, and to savo at once our material interest
aud our honor, is the payment Of the prin.
cipal and interest "of the public indei,ed-
ness IN the uttermost good faith to all cred
i,ors Ut homo and abroad"
Duty aud policy join In this noble do.
inand Of tho Chicago platform. Il cannot
fail 10 receive thn approval Of the American
people, for he who can imagine II rejected.
and the dishonest doctrine or the New York
Convention preferred, must assume tina,
the people Of the United States have los,
alike their sense oi national honor and
their capacity for selEgovernment