Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1868-06-30
N N TAXES.

JuStiSe, equity duu necessity OI ta&iuB
the bonds Of the nation one Of their
chief hobbies. II, as we are led to be-
lieve, well-msauiug, patriotic but mis-
taken citizens have been led astray by
the cunning sophistries with which
these plausible rogues clothe their dis
honest schemes, the fact is greatly to be
regretted and it becomes the bounden
duty of all true hearted and sound
thinking men to use every effort to refate
their fallacies and couuteract their
vicious influence. Democratic dema-
gogues have for a long time strivsn most
a~ssiduously to create a popular preju-
dice against the boldholding class, and
arouse feelings Of jealousy in the public
mind against the privilege which this
class is representcda as ~upjustly enjoying.
The FIRST effort to give practical effect to
these ideas was made by Mr.. Holman,
Democratic Representative from the 4th
Congressional District Of Indiana, who
recently introduced a resolution in the
Lower House, which was, by a vote Of
So to "a referred to the Committee
on Ways and Means. The resolution
reads as follows:
Resolrsd, That in the judgment Of the
House the bonds and other securities issued
A. Will a. -ANA -A-~
| By law from State and municipal taxation,
amount substantially equal to the average
tax imposed in the several States for local
purposes, in such manner a. may substan-
TALLY equalize the taxation the taxes to be
deducted from coupons as they may become
due, and that the Committee on Ways n
Means be instructed to report . bill for the
purpose above specified.
The motion to refer to the Ways and
and Means Committee was intended for
a test, and reference was understood to
be equivalent to a defeat Of the meas
ure. While all Of the Democrats except
three voted against the reference, all of
the Republicans except ten voted for it,
but we regret to perceive that Nevada's
only Representative, Hon. D. R. ASH
ley, was one Of the ten. The inference
that Mr.. Ashley is therefore in favor of
the taxation Of the national bonds is
neither improper nor unfair. If he is
in favor Of this course, does be fairly
represent his immediate constituents in
that respect2 The rightfulness or
wrougfulness Of the proposition is in q
nutshell. It is well known that the
Government did not authorize taxation
Of the bonds prior to or at the time Of
their issue, but in terms prohibited
such taxation for State, county and
other local purposes. Not only was
this the case, but 1t was publicly an
nounced BY the agents Of the Govern
ment, and understood by the purchasers
of the bonds, that they were to be free
from taxation. By virtue Of these rep
reservations loans were obtained at .
rate Of interest which less than
the accustomed usance for money, al
though the risk of utter loss Of the
sums loaned seemed imminent.
At no time since the inception Of tho
rebellion has six per cent, the rate at
which the loans were obtained, been an
exorbitant or even an average rate Of
interest. It is indisputable that the
promise Of exemption from taxation was
the inducement which procured the
loan at six per cent, and there a be
no doubt but an increased rate would
have been demanded, bad it been I'M
ders.ood that the bonds were to be
taxed. II this is true, and the spirit,
II not the letter, Of the transaction
pledges tho faith Of the nation to az
emption, Of course NO honorable man
will advocate the forfeiture Of plighted
faith by taxing the bonds. But if it is
doubted whether the case stands as we
have stated it, the Government can easily
apply a practical test which will satisfy
all parties. This can be accomplished
by substituting a new for existing loans.
Suppose that this course were adopted,
and that the two propositions were fair
ly and unequivocally submitted /; to ex-
empt the bonds from all kinds of taxa
ton, on the one hand, and to subject
them to the principles Of Holman's res
olution on the other. It will not be de-
MED that the ultimate aim Of the lender
would In either ase be the same, and
that his bargain would equally in one
or the other case eventuate in a loan at
q certain rate Of interest, unless the
Government should disgrace itself
by q resort to subterfuge and double
dealing. Let US suppose that six
per cent. net, 10 the rate which
the lender intends to realize on his lean
and on that basis inquire whether II 10
to the interest Of the taxpayer that the
loan should be taxable or exempt.
With q thousand dollars to invest he
would make his bargain SO a to net
sixty dollars interest, and would take a
thousand-dollar exempt bond, drawing
8 per cent. interest, at par. But If the
average of local taxation should DO
found to be three per cent, and his
bonds were TO be subjected to that rate,
it would require . two-thousand-dollar
bond 70 realize his sixty dollars net ;
the mount for which other property
would be taxed 70 pay interest would be
unchanged, while the Indebtedness Of
the nation would be doubled. Limited
space compels US to defer further dis
cussion Of this question until a future
issue.
Nsw NoxrxArlos.-The Rev. Nasty
can't 20 Chase or Hancock. He pro-
poses as his candidate "Jethro L. Krip-
pins, Of Alexander county, Illinoy.'
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