The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-07-02

w
ton.
The Financial Future-TaXatiOn Of Bonds,
BTon, me N. Y. Times.
If Congress has not time or capacity or in
clination to give the country the benefit of
judicious financial policy, at least it should
abstain from adding to the doubts and compli-
cations with which the business and mOneyed
future is beset. Hope as we may, promise and
predict as we may, it is impossible to ignore
the existence of potent causes of uneasiness.
Money is more plentiful than confidence. And
the want of confidence arises in great degree
from the absence of fxedness in the course of
the Government. There is scanty faith in the
Judgment and integrity OF our Lawmakers IN
financial matters, which is as humiliating asi
is disastrous. Capitalists and projectors hesi-
tate to embark in enterprises, to make con-
tracts or incur obligations, because OF the un-
certainty which attaches TO everything affect
ing the currency and the national credit. AT
one time Treasury contraction unsettles and
embauasses; at another, the prospect OF fur
ther Initiation creates disturbance and alarm.
All the time, the failure to adopt any broad
Just, and practical measure, tending to restore
stability and to inspire faith in the power and
purpose of the Government, produces and
justIfes the feeling OF apprehension which
more or less influences every thoughtful man.
duty the House now proposes to increase the
uncertainty and add to the apprehension by
violating faith with the public creditor. 1t
declines to enter upon the consideration OF
general financial policy bit it does not hesi-
tate to affirm principle equivalent to repu-
diation. Everything it has done in regard to
finance has, in fact, operated in the direction
of mischief 1t has settled nothing. 1t has
neither pronounced positively against inha-
tion nor in favor of any plan or principle
pointing even remotely to a resumption of
specie payments. And at the last moment it
introduces the reputation wedge by vote
which shows that the Chicago platform is
already discarded by majority of Republi-
can Representatives.
AS between the political parties, the contro-
versy about reputation is ended. OF the
% members who on Monday voted for Mr..
Cobb's resolution, 81 are Republicans, while
but So voted against it. OF the absentees, re-
port says a majority are also in its favor. The
House, then, must be considered favorable to
the imposition Of heavy tax on bonds issued
with the promise of exemption from taxation.
In what respect is this better than repudia-
| tion Where is the difference, in principle,
between the exaction Of heavy tax on secu-
rites which were subscribed for, and have been
| bought and sold, on a solemn pledge that they
are non-taxable, and a compulsory process of
| conversion, or payment OF greenbacks instead
of gold Morally, these measures are all the
same. A breach of faith in respect of taxa
tion is no better and no worse than breach
of faith in respect of the rate of interest or the
kind of money with which the bonds may be
redeemed. And as the resolution of Monday
was the work OF Republican member, and
was carried by Republican votes-the Demo-
Gratis helping with 81 yeas, and opposing with
only 2 nays-it exhibits both parties on sub
stantially the same ground. The difference
/ II = Il ~ -
principle. The Republican party may well
complain that the policy deliberately marked
out by the Chicago Convention has been
trampled under foot by its Representatives in
| the House.
1t is of no avail to plead in extenuation that
| income from Government bonds ought to share
! the burdens which all other forms of income
are compelled to carry. AS question of
| equity, the proposition is unassailable. But
equity in this particular case requires above
all things faithful fulfilment of the contract.
! The Government is solemnly pledged not to
tax the bonds; what have abstract equities to
do with the matter, except to sustain the re-
| demptiCn of national promise 1t is desira-
rable, no doubt, to reduce the annual expen-
diture on account of the debt, either by
making the bonds contribute to the revenue,
or by substituting lower rate of interest for
the present rate. Either of these methods,
| however, presupposes the consent of the bond
| holders. Unless that be had, the change is
not honestly possible. And a change not
strictly honest would bring discredit on the
! Government and embarrassment on its fnan-
ces, and would ipjure, instead of benefttng,
every interest in the country.
Irrespective of its dishonesty the Cobb
Butler resolution is to be deprecated because
frustrating the wise policy which the Chicago
Convention recommended. The reduction of
burdens by the adoption of well-considered
funding process, with reduced interest, is
manifestly impossible, unless compulsion be
resorted to, which means confscation, or un-
less the bondholders have sufficient conf
dence in the good faith of the Government to
exchange the present for some other secun-
! ties. But there can be no confidence in the
faith of the Government in the presence of the
resolution sanctioned by the House. 1t shakes
reliance in everything. No contract is safe,
no bargain binding, no promise worth straw,
if Congress may of it's own will annul the cove
nant entered into with the public creditor
touching taxation.
Mr.. Boutwell's bill, therefore, comes too late.
The bill which the Ways and Means Commit
tee is instructed to report can scarcely run the
gauntlet of the Senate this session. But the
passage of the resolution by the House is
enough for mischievOus purposes. II impairs
belief in the integrity of Congress to an extent
which cannot be easily overcome. And though
il produces no panic in Wall street, simply
because the enactment of the bill is deemed
improbable, it cannot fail to render the holders
of bonds less trustful, and therefore less in
| o!ined voluntarily TO accept other terms.