Dodgeville chronicle. [volume] (Dodgeville, Wis.) 1862-current, 1868-07-10
Taxation of u. S. Bonds.

We last week wrote an article on this
subject which on reflection we cannot en-
dorse, and we wish thus early to make the
necessary correction, set ourselves right,
and state why we wrote the article. In
the first place we are free to state that we
had not given the matter proper thought
and~ investigation. We are not bond
holder ourself, and as very few bonds were
held in this part of the country, we had
not felt the burden, if such it is, of them
being free from taxation, and had not
sought out remedy. A long and appar-
emily ably written article in the Chicago
Repu5Zicam, of which the following is an
extract, misled us, and prompted us to the
penning of the article in last weeks ISSUE
The Republican says:
1t is adhorrent to every sense OF justice
that the incomes of all classes OF indlvldu
ais should be amenablc to taxation, except
ing only those of the bond-holders. A
man with 100000 invested in national Sc
cur;ties can abstain from every description
of productive occupation-may live alto
gether as non producer-may be drone
in the hive of industry-yet can seml-an-
nually draw his interest and invest it In
more bonds for years, without contributing
one cent directly to the revenues of the
Government.
1t goes on to convey the idea that the
resolution of Gen. Cobb was only an effort
to place the income of the bond-holder in
the same category and under the same bur-
dens and liabilities as incomes derived
from other sources, and would not affect
the credit Of. the government, or the condi-
ton or standing of the bonds in the for
eign market. This we conceived to be
perfectly fair and just. We must never
theless confess we were greatly surprised
that such state Of things-as represented
by the Rcpu5lican-existed, but we had
such faith in the financial and political ed
ucation Of the editors of that usually sound
journal to believe that they knew what
they were writing about, and take what
they said for granted. On examination
we find that the Republican did not state
the facts, which are about as follows
Bond holders are subject to precisely
the same tax on incomes as other men.
The man with 100000 in government
bonds at 6 per cent. receives $4,000 in
gold. The assessor in making out his
list, adds the premium in gold, which at
this time is DO cents, and the bond holder
is required to pay on an income of $8,400
The resolution of Gen. Cobb, instead Of
placing bond holders on the same footing
with holders of other securities, virtually
compells them to pay three or four times
as much on their income as others, or in
other words, it reduces the interest from
six to five and a half per cent, and conse-
quently would affect e0ery bond of the gov
eminent, whether held at home or abroad.
1t would, instead of driving our bonds
abroad-by making them more profitable il
other countries than in this-send them
all home for immediate payment, destroy
ing foreign confidence in the integrity Of
our government, and probably causing a
money panic at home. No we are more
opposed to the movement for taxing the
bonds, or in other words, repudiating part
of the interest, this week, than we were in
favor of it last week. We thought last
week that we could see relief 10 the tax
payer, and honesty and fair dealing on the
part of the government in this. movement
but we have examined the matter little
closer, and can see neither, and we have
just as much right to repudiate the whole
government debt as to repudiate one dol
lar of the interest Such schemes will no
succeed. They are species of dishonesty
and partial reputation, and would worl
far more mischief than they could possibly
do good. We on reflection, can see M
other means ssof relief and believe with
the Republicans of the nation, assembled
in convention, that "the best policy to di
minish our burden Of debt is so to improve
our credit that capitalists will seek to loar
us money at lower rates of interest than W.
now pay, and must continue to pay Sc
long as reputation, partial or total, oper
or covert, is threatened or suspected"