Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1868-01-03


There is probably no principle Of CON 4
stitutionaI law more incontrovef bly,
fixed, so far as sntecedent custom and
judicial decisions can settle it, than that
the promises of the United States can
not be subject to taxation, Stats or ma
tiouaIs From the first decisien upon
this subject, given in 1919 by CHER Jus
tice Marshall, down TO the present, the
voices of the national courts have uni-
fOrnly opposed such taxation and there
oy protected the constitutional power Of
Congress 80 borrow money on the
credit of the United States.'' The demand
for the taxation of national securities is
therefore an absurd clamor which may
serve the parpose of designing knaves
who want Office, bat which cannot be
satisfied without overturning precedent,
impairing the national credit and yield
ing up the great bulwark Of national
power.
The proposition of Secretary NIeCuI-
Ioch to reserve one per cent. Of the in
terest on the proposed new loan to be
refunded TO the States in lieu Of tax
must be therefore regarded as the mere
trick of a demagogue and not as the
scheme of a practical hnaneier. Tt is a
propo stion to effect loan nominalIY
at six per cent. but really at i've. Why
not effect five, or for that matter three
per cent. loan at Once2 What is the
need of this silly triding, this senseless
prevarication with public creditors? It
is proposed to refund one-half of the
reserved one per cent. to the States in
proportion to population. Why 90 to
the expense of taxing the people to
raise money which is to be straightway
refunded to them? Is it supposed that
this money viii get back to the pockets
of the people or relieve them of local
taxes. Not by any means. 1t viii be
appropriated away by the States for
this, that, and the other improvement
or enterprise which would not otherwise
have been thought of. Taxation viii
not he Hghtened by this process for even
if this bonus to the States shculd find
its way back to the pockets of the peo-
pie it is merely restitution of that
which was taken out of them in the
shape Of taxes. How much better it
would be to build up the national cred
it by protecting the value Of natioaal
securities and by thus commanding
lower rates of interest reduce the taxa
tion necessary to pay the interest. This
/ is something practical and is at the
same time an approach to specie pay
ments which we so much need.
We have something better than we
can say upon this subject in the Ian
guage of Hon. John c., Hamilton who
is a descendant of Alexander HanniI-
ton, the first Secretary of the Treasury,
and has lately written an able paper
upon our finances. In reference to Sec
retary AfcCulloch's rotary scheme he
says:
ssIn his last annual message General
I Jackson used these words: <sTne short
| est reelection must satisfy every one
/ that to require the people to pay taxes
I to the Government merely that they
1 may be paid back again is sporting with
I the substantial interests of the country !;
/ and no system which produces such a
! result can be expected to receive the
/ public cOuntenance." The reason as
| signed and the purpose are alike.
/ The distribution of a sum Of twenty
I millions among the States is argued, in
I order that "the States should be in
/ some manner compensated for the rig ht
/ now denied of taxing them as other
] kinds of property are taxed" If this
4 be a reason, why not dissolve the
/ Union, and go back to the Confedera-
ton, because the power "tO lay any
! impOsts or duties on imports or exports
I is exclusively vested in the Govern
ment of the United States To eluci-
/ date this proposal, the Secretary sets
I forth a table showing the respective
shares to each State of this distributed
sum. What does it show? That boon
/ is to be paid to the rebel States by the
| loyal States,-fOr among these alone
! can the bonds be taken; to the rebel
States which contribute nothing of the
| national revenue; by the loyal States
/ which contri butte all of the national
| revenue boon of nearly eight mil
lions of dollars for 3 term Of twenty
! years, almost enough to pay the con-
federate debt.
This the Secretary calls ''a worthy
basis on which to place the public cred
it." In time of war this proposal would
be called a proposition for ''giving aid
and comfort to our enemies" Now,
doubtless, it is an inspiration"
why the loyal States who have al
ready shouIdered the great financial
burdens of the country should be thus
taxed in order to distribute a bonus
among the rebel States it is difficult to
understand. Mr.. Hamilton's protest
against it viii be likely to meet the ap-
proval of the loyal tax payers of the