The Weekly Perrysburg journal. [volume] (Perrysburg, O. [Ohio]) 1861-1???, 1868-01-10
Srlrttrd 39listellauv.
Mr.. sherman,s Funding Project.

Mr. Shcrnnn'S Funding Project.
From the New York Financial Chronclel
1t is to be regretted that in some iuhu.
eutial quarters promises continue to be
made Of some comprehensive financial
scheme which is to satisfy every want of
our defective system, and TO include con.
traction. taxation and the general policy of
the Government. We have had, for years
past, numerous prophetic hiuts Of such
pauaceaa. But 80 far they have always
disappointed expectation, bailled the hopes
of the projectors aud misled those persons
who looked to such sources for pressing
needed reforms. The truth seems to be
that we must be content TO deal with our
somewhat troublesome financial vessel az
q good sailor behaves at sea. lf his ship
springs leak he attends TO that, if mast
or sail or part of the cordage needs
overhauling, he takes each detail in turn,
and thus Keeps the whole shiptau and
trim. In treating the defects of our finan
cial barque, we must deal with them one
by one. correct them one by one, and,
above all, We must learn how to let well
enough alone. II certain Senators had not
lost signt Of some of these simple prir-
ciples, they would not have introduced
UNIV NNNH Nrn lut blli utlNlt uS.
On Tuesday, Mr.. Sherman, from the
Finance Committee of the Senate, reported
this measure, which is, we understand, to
be pressed in Congress Immediately after
the holidays The chief objects OF this
measure are two. First, it applies itself
to the fivc.twcntes and the other obliga.
tons of the Government which are in this
country, and offers 10 exchange them at
4. Ill,
will give per cent. year to the holder,
in coin. Secondly, it offers to foreigners
who hold live.twenties, to exchange them
for a nOn,taxable bond yielding Az per
cent. q year, payable i'll Frankfort and Lon.
don.
Tho-o arc the ,ne;n points covered by
the bill which has, however, several sub.
ordinate features. The first section pro
vides that the expense of funding the home
debt shall not exceed per cent. Now
this rate Oh 1000 millions will amount TO
the vast sum for commissions, &C.. of 20
millions of dollars. This neU Funding
scheme is naturally rery attractive among
a certain class 0ffRdHcidl dSpirdntS i, SEEING
that il proposes to diStri ute business The
doing of lohich pM be so lucratipc In
the negotiation of The foreign loan the re-
aud MeY iC0uld be attended loits a control
ooer the foreign exchange business, tie
profit resulting from Which icOuLd be er
tremely handsome 10 the party loho Were
lucky enough to get the appointment of for.
eign agents for themselves and their friends.
The spirit of retrcnchment is, however, too
vigilant TO allow 20 millions or more to be
thus added to the too heavy burdens Of
the national debt.
Another subordinate feature of the bill
is the exemption of the proposed new
bonds from oil taxation whatsoever. at
present the United States bonds are not
free from taxation. They are only from
State and municipal dues and the aggre-
gate of these dues throughout the country
is prospectively so small that the exemp-
ton is really no hardship. 1t has never
given rise we believe, to any bitterness OF
feeling except in certain Western States
where scarcely any Federal bonds are held
except by the National Banks, which are
now taxable 10y the States without ques-
tiOn. The bill wontl renUunce beyond re
call the right Of the Federal Governmet 70
tax the United States bonds, and would
make such property absolutely untaxable
forever. This is obviously very danger
Gus principle, and is proposed to be intro
duced now for the first time in our fiscal
Legislation. 1t is an intelligihle provision,
and perhaps a wise one, that the Federal
Government that requires such pTodigous
revenues to sustain the public credit should
appropriate exclusively to itself certain
field for the imposition of it's taxes, and
that local taxation, which is comparatively
email, should not trespass Oh certain re-
served parts of that field. At any rate, it
always has been and alwaSs ehoWld he the
law Of this country that no local govern
ment shall tax the bonds of the General
up the right to tax this kind of property
because the right cannot be shared hy
the formor is, we repeat, to establish a pre-.
cedent which may breed mischief hereafter.
Connected with thin subject is the prop
osition of section I'd to pay the individual
States an annual sum as compensation for
the taxes which, as we have seen, the
States have no right to impose on Federal
bonds. The Government, which has the
right to tax. is to give up the right without
compensation, and it is, moreover, to pay
over a considerable annual sum TO the in
diVidual State besides. II suoh prepos-
terons payment is to be made, ii should be
VOted yearly out OF the taSesI WIN ho O''
binary items of expenditure. To resort TO
the puerile device Of allotting per cent
interest on bonds, while really paying
per cent. and dividing the remaining one
per cent. between the sinking fund and the
States is absurd. The sinking fund is pro
vded for by existing laws. Let Congress
enforce these laws. States have no right
to tax the u s, bonds; still, il Congress
thinks proper, it can vote TO give an annual
sum 10 each Of the States in lieu Of sucf
taxes. But let the vote be an open, annua
vote, subject to revision, and distributed
according to some wiser principles thai
that OF the relative population which would
give TO some States good deal more, apd
to others good deal less, than their equit
able share.
XVTufavorahIe weather 10 work on Nh,