Weekly Calaveras chronicle., 1868-08-29
TAXATION OF BONDS.

Sys oue oA tne arumel principles OF tne Oein-
ocratic platform is tfst Government bondi
should be subject to taxation. The fourth
resolution of that instrument reads as fol-
lows:
Equal taxation Of every species of proper
ty, according to value. including Govern
ment bonds and other public securities"
Equal taxation" is phrase very popular
with the masses. and upon that hobby the
Democracy hope to ride into power. At the
first blush, ifthe cause which necessitated the
issuance of certain species of property
be specifically considered and imperfectly
understood, the policy foreshadowed in the
Democratic platform appears to be eminently
just and proper but q rational, unpreju-
diced investigation of the question in all its
bearings, will convince any reasonable per-
son that the carrying into effect of this por-
ton of Democratic creed would amount to
nothing less than a violation of national hon
or. Democratic papers are filled. and their
speakers indulge in affecting homilies upon
the hardships which the exemption of the
"bloated bondholder" inficts upon that por-
ton of our citizens who do not hold Govern
ment securities. Every intelligent man who
reads their papers and listens to their speech
es, must be cognizant of the fact that they
never discuss the question at all, nor conde-
scend to enlighten their readers and hearers
In regard to the circumstances under which
the bonds were issued. Let US candidly re-
view the subject and see whether justice to
all requires the taxation of bonds. The
cause which required the issuance of evidenc-
es of Indebtedness is yet too fresh in the
public mind to require recapitulation. We
were engaged in death struggle for national
existence. and the "sinews of war"-money
had to be, by some means, procured. In
its extremity, the Government. as authori-
zed by the Constitution. availed itself of the
national credit, and by that means the neces-
sary funds for the suppression of the rebel
lion were secured. In order to fully UNDER
stand the subject, it should be recollected
that at the time the bonds were issued the
question whether man is capable of self-gov-
ernment or not. was problem which was
being solved by the bayonet, and that none
could foresee the result. AS an inducement
for loyal people to assist Government, fnan-
cially, in 1862 Congress passed an Act de-
claring "all stocks, bonds and other securi-
ties of the United States held by individuals.
corporations or associations within the Unit
ed States. to be exempt from taxation by OF
under State authority" As an additional
guarantee, the Supreme Court rendered de-
cision practically declaring this to be the law
of the land. Those persons, then, who SUBJ
scribed for Government bonds, did so with
the express understanding that they were
not to be taxed. If the national cause was
victorious they were to be paid, with spec
lied rate of interest; if unsuccessful of course
their redemption would be an impossibility.
With full knowledge of these facts, loyal
citizens. having an abiding faith in the event.
ual triumph of the cause of liberty, loaned
their money to Government upon the terms
of its own proposition, and took the chances
of repayment. BY decision wrung from an
arbltrament to the sword the national cause
came of victorious. The rebellion was crush
ed and the Government placed in condition
to redeem its promises to pay and to keep its
faith with its creditors and supporters. Shall
our national word te kept inviolate or shall
those who risked their all in support of their
country's cause, when it was enshrouded in
the gloom of uncertainty, be forced to pay
for their exhibition of loyalty The ques-
ton hinges upon the result of the Presiden-
tial contest. The Democrats favor the tax
alton of bonds in spite of the Act of Congress
and the decision of the Supreme Court that
the law exempting them is constitutional
The Republican platform advocates strict
observance of the pledges made by the Gov
ernment during its hour of peril and de-
nounces repudiation In every form. Which,
we ask in all candor, is the course an honor
able people should pursue Let them answer
the question at the ballot box next Novcm-
Der.
There are two methods by which bonds
can be taxed: by the States, individually,
or by the General Government. If Congress
should pass an Act authorizing State Gov
ernments to tax bonds, it would simply be
allowing others to break its word to those
who assisted the Government in its extrem-
ity on the other hand, should Congress
rescind its own action and levy a direct tax
upon government securities. it would stultify
itself and open the door for repudiation.-
Will any honest man demand that this should
be done, or vote with party that advocates
such doctrines We think not. Still it i.
the principal plank in the Democratic plat.
form and forms most fruitful theme fol
Democratic editors and speakers. But they
do not want Congress to tax the bonds thai
is not part of the programme. What they
wish is that State authorities should trans
cend their power IN the matter. It is par
of their policy to create hostility between
the National and State Governments, ane
there is no more direct way of accomplish
ing their object than the one indicated. Th'
taxation of bonds would be not only uncon
stitutional but dishonest-two good reasonl
why the Democracy advocate it.
CoFFRoTH NoMrxArED.-J. w. Coffroth
BY the action of the Democratic Congres
sional Convention of the Second District
has been pitted against A. A. Sargent. fol
Congress. With the thermometer at ninety.
eight, We cannot call it, as we otherwis,
| would. q cold blooded affair. xef Il Ia heart,