The Jackson standard. [volume] (Jackson C.H., Ohio) 1847-1888, 1868-02-13

Government where the people rule. And aside
from this, very few men care to hold a specss
Of property which must ALWAYS be unpopular
with the masses, solely on the ground that il
does not in any form hear its equal proportion IT,
the expenses Incident TO the Government. either
State or national. This question is and has been
absorbing public attention, aud the action Of
Congress in relation thereto will be wa tched
with intense sOlicitude. Our Indebtedness being
more than one tenth of the value of all the prop
ertv in the nied States. and Welding, it does,
To The owners profit about equal to other classes
Of property ii would be yer, difficult to convince
any intelligent mind that it ought not to bear
its equal proportion OF the burdens OF taxation.
Many of our soundest LAWYERS not only in this
House but elsewhere, have conceded the right on
the part Of Congress to tax national bonds Tor
Government purposes. 1t is expressly enacted
in the law OF February 20, 1862, that
"AlI stocks bonds and other securities OF the
United States held by individuals, corporations.
or societies within the United States shall be ex-
empt from taxation by or under State authority
While it is hardly probable that the words 'and
other securities" were intended to prohibit the
States from taxing the greenback currency in
circulation. Yet II has been SO decided hence an
act comforting this power seems necessary IN
order to settle this important question. But no
possible Misrepresentation can exist as to the
clause prohibiting the States from taxing the
DOu0b uGlu DN ClllLtlb lutltll, WHICH
was specific agreement on the part OF the Gov
ernmsnt with lIs creditors that the bonds pur-
chased by them should not be taxed by the States
and no American can be found dishOnOrable
enough to ask Congress to violate this sacred
pledge.
1t was doubtless a wise measure on the part of
Congress to prohibit States from tax ing United
States bonds, aud II was equally wise not TO
abandon the right on the part of the General
t,,.Ira nd lo
under State authority have been made to con-
tribute their equal share with other property to
the burdens of State and municipal taxation, and
none have questioned the right of State Lcgisla-
lures 10 enact laws for that purpose. 1t was
right and proper during the existence Of our
national troubles and when we were compelled
TO eXpend immense sums of money, mainly 10 he
loaned, in prosecuting the war for the Union to
refrain from taxing bonds, from the sale of which
we principally depended for the snews Of war
1t was a kind Of bounty given to the capitalist
similar to that given to the soldier, certainly not
to be continued indefinitely. nor are the bond
holders in my judgment, desrous that this ex-
emptiOn shall be continued, knowing that the
bonds will he more stable and as O consequence
more valuable with than without taxation and
one Of the leading objects should be to make our
securities popular with the masses, for no indl-
Vtdual cares 10 be spotted by the people OF the
village, city, or county as the man who pays no
taxes for any purpose whatever.
But aside from considerations of this kind,
feel assured that those men who In the hour of
their country's extremity rushed forward and took
the Government loan with avidity, not caring to
calculate whether the investment were q good
or bad one financially, actuated as they we're
by patriotic motives will not now, for the sake
OF harmony and jnstice complain to pay fair
rate Of tax on their bonds.
What they do ask, IN my opinion, is, that mas
much "a they have loaned their money TO the
General Government and receive their interest
therelrom that they may be allowed TO pay their
tax into the national Treasury, and thereby be
saved from The enormous tax Incident to incOr-
porated villages and cities, reaching, as general
rule, from three to five per cent, leaving to the
holder of bonds from one to three per cent. US
the net annual proceeds Of interest on which they
rely for support; and In addition to this, they,
In common with other citizens, ask that now in
time of peace we may have steady, comprc-
henslye, and equitable financial policy rs well as
protection to The persons and property Of all
citizens without regard TO race or color.
This, It is believed, would give entire satlsfac-
iiOn to the taxpayers Of the country who, while
they believe that Government securities ought TO
be taxed, are, In my opinion, totally indifferent
as to whether II Is done by national or State al-
thority, as In either case the effect will be- to
oquallze the burdens Of taxation and as II Is In
teuu6u luul hll DuI DOlll OLnLb ulu
national, shall be hononby paid to the last dol
lar 1t can make nc real difference to which class
the revenue arising from our tax on bonds shall
be applied but 1t does seem most fair that II
should be applied to the extlnguishnent Of the
debt from which II is derived.
srEcIE PAYMENT.
Mr.. Chairman, a speedy return To specie pay
ment 90 n sovereign cure for all financial ills Is
strenuously urged, and strong pressure from
some quarters is being brought to bear for the
adoption Of such measures by Congress as will
hasten the golden period, while very little Is said
about cutting down the general expenses Of the
GSvernmentto to corresponding basis. 1t would,
doubtless be very agreeable to the officers Of the
different departments fthe General Government,
with their anlOat innumerable appendages 10
receive gold for their official services but II
might not he quite 80 agreeable TO the aborng
manufacturing, and producing closes TO have
the prices of their labor and products cut down
10 suit these golden times, II might suit capital
lists who have loaned their money to the General |
Government 10 corporations, or TO private indl- |
VlduAls on legaltender basis and at q legal |
tender rate of interest," TO receive their debts,
principal and Interest, 10 gold but 1t would not |
suit the toilng millions who have these debts to
pay quite 80 well.
Ia there any sane man TO be found who, having |
a large debt hanging over hls head and having |
the power, would voluntarily bring prices down |
until he had first discharged his Indebtedness IN |
whole, or at least IN part7 Was II ever heard !
that any nation, being In state Of suspended |
specie payment with an immense debt resting |
on II aud lie credit At heavy discount resumed |
Aspecie basis and aiterward paid lta indebtedness
aud might also add, ever intended to ? And |
where ls the American TO be found who Is willing |
TO see hia own dear country Ia this condition.
II win do no good to 70 back and inquire into
the cause of our Indebtedness, or what per cent.
IN gold value we received on each dollar CON-
prising II we must deal with circumstances and
facts aa they are, and not as we would have them.
We are now IN the condition of suspended specie
payment, and as the "legaltonder act" contrib
uted very largely In swelling our Indebtedness
10 Its present Immense proportions, sound ma
tlonal policy, In my Judgment, dictates that II
should aid ua In diminishing that Indebtedness
aud this may be done without Injustice to the
creditors or oppression to the people, When We
succeed, as have no doubt we shall, In so
amending our revenue laws ~ honestly 10 get
what ls contemplated, We shall receive certainly
not less than 900, 900 900 from whisky alone In
addition 10 what Ia now received, 10 say nothing
OF other innumerable leakages.
While taxes may and doubtless will be greatly
reduced, the people are quite as much concerned
about an equitable distribution Of them among
property holders aud n faithful collection aud
application TO the publle debt as they are about
tie amount collected. Who would not tire TO
be always paying and yet never reducing the
principal and with present. and prospective
means derived and TO bs derived not only from
the proceeds OF industry but also from udelous
retrenchment In public expenditures, who will
not hold the lAW-maklng power responsible for
the folly Of failure 10 provide for permanent
annual reduction OF the principal Of the debt2
aver here and now, In the face of the opinions
and recommendations Of the chief executive aud
financial officers of the Government, the report