Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1868-07-17
Tconslaa-a tom tlr., paee.l

shaN be heavy enough To compensate Tor
the exemption OF the principal. The gov
eminent. in return for loan which it nego.
tiated in a time OF Imminent, peril. promised
10 pay certain rate of interest and to
exempt its securities from local taxation
This pledge. the sacred observance of Which
is absolutely essential for the maintenance
OF the national credit and honor. the Demo
Gratis purpose to violate by Withholding
such part OF the interest as the caprice OF
Congress may dictate and distributing it to
the States.
Curiously enough. on tho very day of the
Augusta convention. Mr.. Blaine of this
State made speech in the national House
of Representatives in which The very subject
above referred 10 is treated with admirable
coneiseness and force. as the following
extract viii show:
But il win be asked. why don't YOU
tax the bonds By national auIhority?"
Granted. it viii be urged. that the power
of local taxation would be nucatorv and
valueless, that affords all the stronger
reason for taxing the bonds by direc, Con
crcssional cnactment.n Ia answer TO Thu.
l have only TO say that tax levied directly
upon the coupon is simply an abatement OF
interest, and that result can be reached in
better and more satisfactory and more
honorable way. The determination mani.
tested by this Congress and by the grea,
Republican convention ct Chicago to main
tam The national faith has already worked
large appreciation IN The value OF the bonds.
and with the strengthening OF our credit.
winch re suits from an honest aud hich.toued
policy, We will speedily DC able 10 fund our
debt on lower scale Of interest. running
down TO five, four and half. and Ultimately
TO Tour per cent. per anaum. Should We
proceed, however. N violation of good faith
and OF the uniform practice OF ci,ilizs ed
nations. TO hold back part of ihc stipulated
interest instead OF effecting an honorable
exchange OF bonds to the mutual advantage
Of the government and the public creditor.
we should only punish ourselves, produce
ralamIious results in the business world,
AMI permanently injure our national fame.
To withhold one per cent OF the intcres,
under the plea OF A national t \ this wear
might be followed by Withholding two per
cent. next year and three per cent. the
year ensuing. To enter upon such policy
would produce alarm a. home and wide
spread distrust abroad. for every man hold
ing bond would have TO count bis r,ie Of
interest not on what was stipulated in tho
contract, but on wha, might be the will and
caprice OF Congress in its annual withhold
ing OF a portion OF the interest un.lrr III.
pretenee OF tax. Under such a policy
our bonds would be returned upon US from
Europe With panic like rapidiiy. and the
drain upon our specie resources would pro-
dnce an immediate and disastrous crisis in
monetary circles. II even one half our
bonds held in Europe were suddenly sent
home Il would drain Us OF two hundred and
fifty millions % specie, AMI the financial
dIsiresS ihroushcc. the length and breadth
OF the land would be bey ond he power Of
calculation or Imagination. And vet that
Is the precise result involved If We should
follow the policy advocated by those who
urge Us TO tax the coupon and withhold one
or two per ceut. Of the interest. Let Us
REJECT such counscls, and adhere TO the
steady, straight forward course, dictated
alike by good policy and good faith. Aud
let us never forget that in the lanauar, of
the chicago platform. the best policy 10
diminish our burden % debt IS 10 so Improve
our credit that capitalists " al seek to loan
US money at lower rates OF interest than
VIC now pay aud must continue to pav. 20
long as reputation, either partial or total.
open or covert, Is threatened or suspected.
We cannot iorbeaI adding an abrid smen.
OF another part oi Blaine 5 speech in which
he disposcs OF this whole subject OF bond
taxation IN an unGnswerabic manner:
If the power were fully and freely given
to day to the States and municipalities TO
tax the bonds. scarcely any tax would be
derived there from Counting out the five
per cent bonds. about whose taxation there
rs lao SPECIAL jealousy. the total amount Of
gold bearing bonds is : 900 600. 600; bat
Of this aggregate it is known that at least
5000 900 900 are held in Europe. leaving
but Sl,2j0,oo0.oJo in this country TO which
taxation could. IN any event. apply: but Of
tbs - go. 100000 more th4n one Third.
or si2j 900 600 are held by the Naliona.
BANKS and no form Of property pays SO
large general tax as these banks. Be
sides paying fall local tax. a. The l. ghost
rate thpy nav a tax 10 the 4. .,,..,..I 4, ..., .
m,nt. amognIns to 2 per cent annually.
bed1ct'ng this i45.0OJO0J Of bonds. We
end Mut $50 .uun. llu NOT t,,.n. -.