New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-07-02
XLIsr CONGRESS-2D SESSION
SENATE. WASHINGTON. July

SENATE. WASHINGTON, July 1.
Mr.. ANTHONY (Rep., r. ~ was elected Pies
den pro te consequence Of the absence of the Vice
President until after July 4.
The bill change the time OF holding terms OF
the District and Circuit Courts for the Northern District
OF OHIO passed. ..
THP MISSISSIPPI AND LAKE MICHIGAN CANAL.
The House amendments TO the bill for The improvement
Of water communication between the MssiSspp Eaner
and Lake Michigan, by the Wisconsin and Fox RIVERS
Mr. P0MERoY rep, Kansas. from the COMMITTEE init on
Public Lands reported with amendments the bill INTRO
dHced on the previous day TO promote railroad c0hhu
right of way of the Portage Lake improvement Com
pany and granting lands for the improvement OF SUR
The Afantic and Pacific Railroad bill briefly dis
cussed and an Intellectual effort made 10y MT Il
son QCp Mass to get up the conference report Oh 'o
THE TAX BILL
question being on the u
tax the interest United States bonds five per cent
Mr.. BAYARD Dem, Deli advocated the proposition
which had been made at his suggestion, "a bringing
under taxation species Of property when had no claim
Mr., EbMUNDs Rep., VIZ characterized the PROPOSE
tion IA direct repndaton and as untenabe Constitu
tional grounds not TO say dishonorabe. II the principle
IN or 100 per cent and thus repLdae the whole interest
Mr. THURMAN dem. Ohioj denied that there was any
bonds and the taxing income II one was repudaton
so was the other. The only difference was that by tls
proposition the Government got per cent on the entire
interest of those bonds whether held at home or abroad
while under the Income Tax law our own S
the Government had never promised II would not taA
the bonds. 80, -. o,r,r, 60
create an income tax directly discriminating against
Government bonds 1t TO the honor OF the country
that since the foundation Of the Government Ith T W.
recently, no such proposition had ever been made
discrimination of this kind was tolerated, h
soon discriminate against other individual INTERESTS sucn
IA shipping and cotton the great injury OF commerce
and the Southern people. He looked upon II as nere
political dogma. 49,, T.. ,,-...,1
MIR CORBETT Rep.. Oregon) was hostile TO the amend
mcn opening the doors to coalition between .G the
apIf Tho A.tffh vi
bonds TO an extent TO make them as worthless as 'o
Mr., RICE 3Rep, Ark) remarked that the tax was to
be imposed upon the interest property WINE Ia.oI
able to Income Tax, he would not lay direct TAX
Mr.. MORTON Rep, Ind) held that the withholding OF
onehaf per cent would be violation OF ,h1 Go Lib
the former pledged to pay six per cent % .oo
Mr.. STOCKTON DEM, n j. said he was unable 10 See
any difference between the proposed tax and that I'M
posed upon the salaries of Government ocerS by winch
the Government withheld portion OF their compeh
Mr., cAssERLY Dem CALI held that the power to tax
the bonds was derived from the inherent right OF the
GOyernment to tax privileges and benefits expressly
conferred In reply to Mr. Morton he argued that tno
Income Tax had operated upon incomes derived from
bonds without any charge OF violated contract In an
Mr. sherman, he said there was not page IN the
ciple Of excise law being one Of discriminatlon
Mr. FENTON Rep, n. " explained that he voted for
conception believing it was intended TO continue the
law relating of five per centun upon income de-
rived from United states bonds II altered 10 CONFORM
to the law in this respect, ne would vote for H. - -.
The amendment was then rejeced-feas, l.; Nays 90
The following were the
t e%:.11, Hsssler oi Spec, Ts%%sai
"a M tr' TrIrRNAS Dem. Obioj moved an amendment
imposing five per cent tax on incomes derived from bonds
by American citizens here or in other countries.
Mr.. WARNER (Rep. Ala) moved, as substitute,
three per cent ON incomes derived from all invested
capital. $1,000, -, 49,. .-,.,,o,, =
division-and Mr. Thurman's by Yeas 49, Nays 3d. the
vote being the same as on the PRECEDING amemde' eA
Amendments offered by Mr. BAYARD Dem, Dell
INTENDED for exhibition at agricultural shows but
remain over six months il sold within the United States
they are TO he liable duty Also to repeal the taxes
on 6eguests and devises literary institutions, to take
place after the death Of the testator; Adopted. A..
at which the free st go into operation having been
withdrawn the paragraph remains as paSseu D! 'no
There being no further amendments to the bill, it was
reported from the Committee OF the whole 70 tg n
when the amendments were concurred IN eAgtP .oso
upon which separate votes were asked, winch were
reserved. - 49,, ,.
the amendment striking out the Income Tax sections
MI WILSON ep Mass moved Dan an S ;, Ser
cent Reected-Yeas, %; Nays, o. -, -. A.
Mr.. DRAKE rep, MOI moved to make the rate nVe
per cent. Lnst-Yeas, -; Nays, IS. 49,
Mr.. DRAKE then moved to make the exemption $1,000
The senate then voted upon the amendment Of the
Committee of the Whole striking out the Income Tax sec
tons which concurred in the vote being regarded
as a finality-Yeas, &c Nays, n.
The ne 1t amendment, upon which separate vote was
demanded, was the section ltsefleu ~ INC
the Whole continuing the tax on salaries ana d'dehd
for the year 1870. . %,
Mr. TRUMBULL QRep, Ill) regarded the tax on OIL
ci salaries as the most Objectionable OF all the income
taxes The practical effect Of its continuance was 10
subject the poor Government clerk to tax upon his
earnings while the income OF A. l. stewart was exempt
The section was amended to provide that the tax
should cease on Aug l, 1870.
The amendment was then concurred IN
Mr.. SHERMAN moved to amend 50 as TO continue NE
fax ON gross receipts present remarkng that the
Senate dare not dispense with taxes necessary for the
support OF the Government.
The motion was lost by tie vote-Yeas, 25; Nays %
MIR EDMUNDS Hep., VII gave notice that in conse-
oence OF the vote Just TAKEN he would move to recon-
slider the vote striking out the Income Tax sections.
AT a o'clock the Senate took "A recess till evening.