The New York herald., 1870-06-04
Nnys--z1.

Mr.. BECK advocated his amendment and denied
the statement or Mr.: Schenck that 1t would be i'm
posing double tax As to the credit OF Inc govern.
ment, he said the United States bonds wien they
were issued were exempt from State ana munlclpai
taxation, but were 'eft open to federal taxation, the
same az all other property 1t was propo cd In the
Funding bll to provide that the bonds issued under
ting that holders Of the present bords know that
they were subject to federal taxation. There was
nation had ever considered II. These bonIs were
already taxed IN the hands Of American citizens
thai tax 10 bombs In the hands of iofeian holders.
The English government as shown in q speech OF
the gentleman. from massachusetts lMr. Butierh had
CHARGED len per cent, seven per cent Ave psr cent
and three Per cent on its bonds, the OF
tin government required, aud had thought
Of impeaching The Integrity of the gOyernnen ivr
that.
Mr.. BUTLER OF Mass.,, supported Mr.. Bcck's
amendment, and proposed also that ihe interest on
town, city, county and State bonds Should be taxed
In The same manner. They We're not taxed row. 10
was only tic consciences OF the men hodiag those
bonds that were taxed, and ne sorry to S ~ hat
conscience had not been very prolific source Of
come from these bonds and the object was 70 make
the rogues pay also. The Committee ON Ways aud
Means had provided by the bill to tax the savings
banks, thus taxing the pi ance OF the serving girls,
widows and orphans, uthld excused from taxation
the s2,Ooo,ooo,ooo OF United States bonds. Were
members to go TO the peGpe with that proposition
Not he, for one. blight mis- right hand forget lis
cunning II he did. Had the United States pledged
their faith that these bonds should BE- Ia xed
Ihey mad not; no man, not even broker who sold
any OF these bonds. had done so. II the United
States nau agreed not to TAX these bonds he would
Mr.. BENTON trep.} OF N. ibid we not agree TO
pay the amount specified on the bond and interest?
Mr. BUrLEE-Yes. sir; and we are going 10 do IL,
anu then we are gong 10 collect tax II. so that
the rascals who hold those bonds and do pay tax
on the interest shall not cheat
Mr, BENTON-is man a rascal because he holds
United States bOndsf
Mr. BUrLEE-Ony when he swears that he has not
drawn the interest. Why should not the be de-
ducled at the Treasury? HIS very bill required that
to be done III the Case OF railroads and banking COR
pnpn nttnnl nd Iou
abroad bearing seven per cent interest in orief t.
compete WIN United States bonds that were un-
taxed.
Mr. KELLOGG, lreD) Of Conn.,, asked Mr.. Butler
whether he did hot know that foreign holders Of
these railroad bonds did not get the ui an0Jlt OF
the interest without deduclon for taxation?
Mr BUTLER replied IN The negative. Tde railroad
companies were bound to deduct The tax.
Mr. oCuENCK remarked that the TAX thus iDpr)
psd psEy Dsee yeHs a sl 2m foreign '0na"ode' wa" being
Mr. BUTLER asked why, # that were SO, there was
provision in the bll 70 perpeluate itl He dld MT
know any reason why the tax should be refunded.
Great Britain now taxed her national deAt IN this
way ana always had done IL.
Mr.. BENroN--Wnl the gentleman state the name or
any one who holdsiUnited states bonds and sweags
thal he does nOtl
Mr. BUTLER-He who can count the stars in tie
sky may try to do that. t.aughtcrl
Mr.. HoTonKlss, lrep1 OF N. " opposed Mr. Bcck's
amendment. he did not propose that this rcpuDl.-
can government Should commit suicide. m y might
as wen advertise 10 ihc world not 70 touch tho bonds
W be issued ulder the Funding bill, because they
could not tell but that those bonds would be al o
taxed
Mr. SCHENCK remarked that the debate had gons
OH just rs he had supposed II would Instead of
reasoning to the effect which the proposition
would nave on the credit Of The government, an
assault was made upon and an attempt TO create g
pre- udice against those who happen to hold the
curties Of Tie government. The fashionable phrase
applied to those persons mad been 'b oated bona
nolderso But the gentleman from MASSACHUSETTS,
tMr. Butier) had improved OH that by caidg taem
pardon HIM for saying so--mere captrap. Tney had
nothing to do with the great underlying question:
low would such legislation affect the G edit Of The
government and It's capacity 10 maintain II elf by
going on the markets OF the world and finding puf-
chascrs for It's DondsS The bondnoders were OF the
lhe. question. The question was not as TO who
held the bonds or what their character
was; but 1t was one OF Irnciple, al
fecilng the government ana its good
name, II had tnat extent and no more. There was
constitutional or statute law to tax the foreigner
in regard to property which he owns here. The
gentleman (Mr. Buter) had said that that was done
fn regard to railroad bonds, but lid he not know
that under decision OF the court the Treasury De-
partment had where that was DONE paid bac,, 10
upon them and collecteda He had heard within the
last twepty-four hours Of Treasury warrant for
some seventeen thousand dollars for the restoration
Of money thus Improperly retained from foreign
bondh0der.
Mr.. ELDRIpGE, dem. OF Wis, sustained the
character and faith OF the nation 10 be destroyed
or injured by IT, The value Of all property depended
the success the happiness the prosperity or the
nation; and why, therefore, should not such party
pay is proportion Of the taxation imposed 70 support
the government THIS was q mere question u now
the TAX should We cqected. The li9nt VI saAailel