The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1868-10-06
Reasonable Financiering.

Reasonable Tinanciering. g'@2
no .g -stagi rr 81
Hon. Francis E. Spinner, Treasurer Of
the United States, in reply to letter
from j. Q. Thompson. of Shelbyville,
Indiana, in regard to taxing United |
States Bonds, receives a fragment of !,
history that most people lave forgotten
Mr. Thompson in his letter says: g5.s !
s'The national political convention
which assembled in New York on the 4th
of July past, adopted as its fourth reso,
| luton the following, viz, sEqu al taxation
of every species of property according
to it's real value, including government
bonds and other public securities os
| 81 wish to inquire what has been the
practice Of tile government since its
foundation respecting the taxation OF
government bonds; or, if this informa-
ton cannot be briefly and conveniently
conveyed, permit me to modify my in
quiries SO that it may cover only tho
period between March 4, 1853, to March
4, 1861. extending through two historic
remember that bonds, or other evidences
of interest bearing Indebtedness, origin
| ating in loans then contracted, were is
sued by the government during the ad-
ministration Of President Buchanan, at a
rate Of interest in gold of IL per cent per
annum. Were these public securities
subject to taxation on an equality with
every other species Of property p
Mr.. Spinner. in reply. proceeds to
quote from the desision of the Supreme
Court in 1929, in the Charleston case,
which denied the constitutional power of
State or muicipal government TO levy
tax on the bonds Of the United States,
or to attack aud impair the public credit
by taxing it. He shows that under no
administration, Z 70 m Washington to
Johnson, has any State ever been allow
, ed to tax national bonds. He then goes
on to give the following useful piece of
information:
$ There is history about this IL per
cent per annum loan that the people
. should be slow to forget 1t was part
: of the rebellion itself. Howell Cobb,
, former Speaker of Democratic House
7 Of Representatives, late Brigadier Gen
, eral in the late army Of the late Confed-
crate States of America, and then Mr..
. Buchanan's Secretary Of the Treasury,
: carried these securities in his carpet bag,
8 in blanks, to the city of New York, and
r after slandering the stocks, traducing the
4 credit of the government, and announ.
. cling his opinion that they never would
9 be paid, but that he must have the money
for them at any rate, offered them on the
!, market, aud then filled up the interests
It blanks at such rate as his political friends
them were paid in gold, with the stipu
i lated exorbitant rate of interest added
q after I came into this, Office, and afte
n the war had begun, and when, notwith
t. standing all this, the government wa
II then obtaining loans at six per cent. pc
q annum. This loan was made, too. within
n q very short time after the same homes
t Democratic Secretary of the Treasur
had been using the funds in the Treasury
n intended for the current expenses of tn
e. government, in buying up in the marke
Of the sir per cent. bonds of the Unite
l. States, that had then manv years to ru
N to maturity, at about twenty per CEN
y above their par value. Think Of it. H
10 bought the immature six per cent. stock
il at 12O, and Immediately thereafter. in .
,e apparent time of profound peace, an
ly when money was abundant, sold secur
re ties, receiving par and stipulating t
of pay at the end of one year liz. aiUos
ut WAS Cobb . fool, think you r. -
is "Not at all he knew exactly what b
h was driving at. He was already at ths
IN early day q traitor. and hoped by b
K rasca!ly management to SO cripple til
eli resources and derange the finances Of til
government in whose interest he wa
b. and whose interest he had sworn (ft
or pay) TO protect, as to make secessio
ct easy and sure. This man, the origin
ill carpet Dagger is now, as he was the
as leader and shining light in the Dem