The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1868-06-20
TAXATION OF United states BONDS.

Mr.. Lyman Balloon, radical member
of the house of assembly 10 New York.
having introduced a resolution into that
body looking to the taxation of the Uni
ted States bonds and securities for state
and local purposes. they being exempt
now, was most boldly taken to task by
the bondholders' organ, the New York
Tri5une Mr. Balloon then sent com.
munication in reply to the Tribune, from
which we take the following extracts
They are sensible and TO the point. He
says:
II have been a republican from tha
organization of the party. opposed
slavery believed it was. wrong for one
portion Of the human family TO be COM
pelled TO labor for and support another
more favored portion of our race. am
now opposed to compelling our farmers,
mechanics ond other working classes to
pay taxes for state purposes and for the
support of local government in counties,
towns, cities and villages, and for build
ing court houses, jails, poor-houses, school
houses, bridges, highways, and their
maintenance which holders of United
States bonds ought to pay. I favor equal
and exact justice in taxation and equal
civil rights for all men, and am unable
TO see that such measures would conflict
with our national constitution or violate
the obligation of contracts.
I" The people submitted to the acts of
Congress that compelled them to take
United States notes in payment Of pri-
yate debts which were payable in gold
when contracted, because there was a
necessity for such q law, and it operated
alike upon all classes of society. And
they can not see how any injustice would
be doue to holders of United States
bonds not payable in gold, if the govern
ment should pay such bonds in legal-ten-
der notes, in case the holders Of such
bonds will not exchange them for bonds
subject TO taxation under state laws.
" If you will mingle little more than
you do with the masses of the people,
you win learn that they demand that JUS
tice shall be done respecting the taxation
of national bonds, and that the people
are fearfully in earnest upon this ques-
ton. And what is right, legal and just
they viii maintain at the polls Of elec.
tions.
/" All holders of United States bonds
should be willing to bear their Just pro-
portion of the burdens of all kinds OF
taxation. and thus surely prevent repudi-
alton of the national debt
"Your talk of our national bonds all
going abroad if they should be subject to
taxation under the state laws provokes
smile. 1t is the merest bosh. It seems
to me that very few, if any, holders Of
such bonds would sell them for such .
reason, because they could not invest the
proceeds thereof in any nOn-tazGble se-
curities. But if they should sell their
bonds in Europe the proceeds would
come back to this country in money OF
property, and be subject to taxation un-
der state laws. And there is no danger
that bondholders viii bite off their own
noses.
'0ur State bonds are held in this coun-
try, Notwithstanding they are taxable un.
der State laws, and our national bonds
would be held here as they now are should
they be subject 10 such taxation.
"0ur State bonds are above par in the
market, and the price of our national
UOHuS Wouiu aisO FeIualu ABOVE par AZ QUIZ
stock boards if they were declared to be
taxable for State and municipal purposes,
for the reason that they are the most de-
sirable securities that capitalists can pur.
chase or hold in this or any other coun-
! try.
"Tf it is wrong, and opposed to the gen.
+ eral welfare, for one man to live at ease
J upon means invested in bonds exempt from
tarat,on, while his neighbor is compelled
to labor, and pay taxes that should be ap.
J portioned and levied upon the entire prop
erty of both according to the amount own
ed by each, then the resolution I have
presented in the assembly is right, and
you should favor it; but otherwise il
! should be rejected, and privileged classes
be supported in this country by our labor.
J ing people.
Nov, sir, / most earnestly implore you
to favor the conversion of our entire ma
tional debt into bonds subject to taxation
J for State aud municipal purposes, as soon
as that can be accomplished under the
Constitution of the United States, without
doing any injustice to the holders of bonds
already issued, and thus save the Repnb-
lican party from defeat next fall, and pre-
! vent reputation of the national debt by
the Democratic party"
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