The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1868-07-10

sP EEcH
M r. B L A L N E,
OF MAINE.
The following is the Globe report Of Mr.
Blaine's speech, delivered In the House OF Rep
resentatives June 2Sd:
Mr.. Speaker. The fact that the bonds Of the
United States are exempt from State and mu-
nicipsl TAXATION has created widespread dis
content among the people, and the belief pre-
walls quite generally that II exemption could DO
removed the local burdens Of the tax payer
would be eimmediatel and essentially lightened.
Many persons assert this belief from spirit OF
mischievous demagogism, and many do 90
from sincere and conscientious conviction. To
the latter class would beg to submit some facts
and suggestions which may greatly modify. II
not entirely change their conclusions: ~
States, the conversion Of seven-thirties COM
pleted, amounts 10 little more than twenty
one hundred million dollars; OF this sum total
something over two hundred million dollars
draw but Ave per cent. interest, . rate not
sufficiently high to provoke hostility or suggest
the necesslty OF taxation, Indeed it may be
safely said that there never has been any pop
ulsr dissatisfaction with regard to the non:tax-
alton Of the Ave per cents, u being agreed BY
common consent that such rate OF interest
was not unreasonable on loan negotiated at
such time.
Tho agitation may, therefore, be regarded -
substantially confined 10 the six per cent. gold
bearing bonds, which amount to the large AZ
gregats Of nineteen hundred million dollars.
Many people honestly, but thoughlessly. be-
lieye that II this class Of bonds could be taxed
By local authority tho whole vast volume rep
resented by them would at once be added to
the lists Of the assessor. Il is my purpose TO
show very briefly that this conclusion e totally
unfounded and erroneous, and that II the right
Of local taxation existed In Its fullest and am:
amount OF bonds could by any possibility be
subjected to any moro local tax than they a.
ready pay.
stated, 10 nineteen hundred million dollars;
and of this total, by the best and most careful
estimates attainable. at least six hundred and
ffty million are now held In Europe. This
amount could not, therefore, be reached BY
any system Of local taxation, however extended
through, and searching. Deducting the amount
thus held abroad we 6nd the amount held ct
million dollars.
But Of this twelve hundred aud ffty millions
moro than one third. or to speak with accuracy.
about four hundred and twenty-five millions,
are held by the national banks, and no form Of
property In the whole United States pays o,
largo o tax, both local and general, ss these
banks. The stock, the depositories, and the
deposits which these four hundred and twenty.
ave million Of bonds represent pay full, fal! locs!
averaging about two and half per cent
Were the power Of local taxation made specific
and absolute on these bonds, they could not
Weld dollar mCre than is now realized In that
direction. II thus follows that the twelve hun
tired and fity million Of bonds 10 this country
presumptlveiy escaping local taxation, must be
reduced by the amount represented BY the
eight hundred and twenty-five millions.
The reduction, however. goes still further,
banks Of this country have invested their depOs-
It's In these bonds to the amount OF one hundred
add seventy-fve millions. In some States by
local law the deposits Of savings-banks are ex-
empt from taxation, as an Incentive to thrift
and economy. In other States, where these de-
posits are taxed, as In Connecticut, Il has been
held by judicial decision that the fact Of their
investment In United States bonds does not ex-
hundred and seventy -fve millions, thus invested
In sayincs.bsnk deposhs, arc either locally |
"A. AHA. or. n exempt, Il is BY State law and
not nv virtue Of the general exemption Of the |
bonds. Il thus follows that the eight hundred |
And twenty-five millions must be further re-
duced by this sum OF one hundred and seventy.
Ave millions. leaving but six hundred and my /
millions not already embraced within the scope
n..,.. q. .,,u s,-.h.- r.d,.,,on o,,h,,.v
,,iu pu. .nets ia =. IN ijts n,nrs nss eomnsni:.
nu'yaS "os o ~ y,.n;s.Iw ,hs .sms tsrms a. tbs
snu nsM ca I"L.w,h., /. s;,h., t.,sd
,epyMss " ;sssn,n, S.,,,inc tbs sysmn,ion
'o0s'y, sO T. u, in.", Ia. Ths .urnius esrninrs and
...S ~. a' 80 ,hs.. i,se in.urance companIes in
's.,si 90 ,hs sytsnt NJ thirty millions IN United
Ststss bonds are lust as omen TO tar alton when
n vsstsd In that form A though they were In
49, nv rs;Iroad securities. Deiucting these
Ihjrtv millions ne 6nd the untaxed bonds re-
,n ~ - .iS hundred and twenty millions.
iussu o'A "0 -. ""I..,,
And stili tne,e sno'ner .so iuuSuon %
or the nre anu msr,no 'nsuisuos 1CmpS p..ns
md the nhnu'ty anu trus' oon SUI osnS'
corporations which cannot resa''y oe oss
hold In the aggregNe oyer 1ne nv nSnu IT, .nu
Wenty.nve mi,lions Y, oouus, snu 49, "a
held on preeiseiy tue ssmS o,ss N.' , snoso ns"
~ the say,ngs-oank anu the ,,n Il,e ,nsurSnoe So
,anies. inese numetous oelPo,sss'vuuS AZ ne
heir capital STOCK, tne'i rsserSes snu 'ner su..
,lus earnings invested 10 uove.nment oonus 10
ne extent nsmeI, snSsney s.u un IN. ,n.s . Wam
% open to taxation and are actually taxed just
's much a. though they were lnvested 10 any
'ther form OF security. MAKING INC deouSton u,,l
u this one hundred and twenty-nve mhlons
70 find remaining out tour hunareu ana nIney-
I've millions OF the SIX per cen.i go'u-vSs,anf
'onds that are not already pr:oticsiiy subjected
Q local taxation; Allowing for for the The possibility
hat one hundred millions OF the hvs per cents
,eis of In nvestmeut have named, and II follows
hat at the outside figure there are to-day in the
,holc country less than six hundred millions OF
|oyernment SKIES, not fully subjected to the
,ower of local taxation. And these six hundred
millions are rapidly growing less as the various
,orporate institutions have named continue TO
nysst their fund. moro and more In the bonds
rhe,o Institutions desire security that Ii OF
tesdy value, not liable to great fuctuation,