The Republican journal., 1870-06-16
CONGRESS AND TAxATIONS.


upon the tax measures, that no relief is to be
expected by the people into whose resources
the hand of impost, excise and direct tax
goes so deeply. However much pleasant
cajoling and delusive talk may be made, in
the halls of Congress and out of them, the
people feel, with the heart sickness of hope
deferred, that they have but to groan anew
under their burdens.
The House has, says the Rochester Union,
against the pledges Of Congress and against
the demands Of the people and the press of
the country, voted to continue the most de-
moralzng of all federal exactions- the in
come tax. The test vote on the square pro-
position to strike out the tax obtained only So
years. The nays were more than two to
one-12G The tax was finally fixed at three
per cent. on all sums over $4,000, with
proviso that but $4,000 shall be allowed for
house rent. The three per cent. was carried
by Is to 78 and the $4,000 exemption by 1873
to so. The New York Sun, edited by Mr..
Dana, the former managing editor of the
Tribune and Assistant Secretary Of War un-
der Stanton, although extremely Radical, is
very Independent and outspoken, and on this
proceeding Of the House it says: 'This un-
constitutional enactment expires by limita-
ton this year, and Congress solemnly pledg
ed itself that it should not be renewed I'M
der that pledge the people assented to the
continuance of what was solely war meas
ure, Notwithstanding its unconstitutionalty,
for five years after the close of the war The
patient, overtaxcd and impoverished people
now demand the fulfllment OF that pledge;
but the Republicans in Congress seem resolv-
ed to repudiate the compact, and to force the
tax again upon the country. In so doing
| they are dm digging mide anM deep the Craze
of their 7,urty. There is no necessity for the
tax now. The revenue is abundantly suffi-
cient for all legitimate needs of the govern
ment. AS surely as the income taxis contin-
ued, just so surely will the Democracy go in
to the Presidential fight of 1872 with the war
cry OF Faith with the people, and put the Re-
publican repudators TO utter rout."
The same House of Representatives on the
same day. rejected by vote of 10 to 7s an
amendment to tax the income from govern
ment bonds-not the principal of, but simply
the interest gathered from, United States Sc
curities-fve per cent, and to ensure the col
lection Of the tax by deducting it from the
coupons. This proposition, moved by Mr.
Beck Dem of Kentucky, was ably second
ed and supported by Gen. Butler of Massa-
chusetts. who, whatever his shortcomings in
other respects, is sound upon the subject of
taxation. We give q taste of the debate:
! Mr.. Beck Dem of Ky.) said those bonds were
| already taxed in the hands of American citizens.
| and his proposition was only intended to extend
that tax to bonds in the hands of foreign holders
The English government, as shown liz speech of
the gentleman from Massachusetts (Mr Butler),
had charged ten per cent, seven per cent. five per
cent. and three per cent its bonds, as the neces
sites of the government required, and no one had
thought of impeaching the integrity of the govern
ment for that
Mr. Butler, of Mass, supported Mr.. Beck's
| amendment, and proposed also that the interest on
town, city, county and State bonds should be taxed
in the same manner They were not taxed now
bonds that We're taxed, and he was sorry to say
that conscience had not been very prolific source
| OF proht.. Every honest man now paid tax on his
| make the rogues pay also The CoInmitlee on
| Ways and Means had provided by the bin to tax
the savings banks thus taxing the pittance of the
serving girls, widows and orphans but had eXcus-
ed from taxation the 81 900 of United States
bonds. Were members to go to the people with
that proposition Not he for one. Might his right
hand forget its cunning if he did. Had the United
States pledged their faith that these bonds should
| not be taxed They had not no man. not even
broker who sold any of these bonds, had done so.
If the United States had agreed not to tax these
bonds he would sit down.
Mr.. Benton, Rep.) of N. H-Did we not agree
to pay the amount specified on the bond and inter
| est
| Mr. BUTTERFLIES, sr and we are going to do it,
and then we are going to collect tax on it, so that
| the rascals who hold those bonds and do not pay
tax on the interest shall not cheat us.
MIR. Benton-ls man rascal because he holds
| United States bonds
Mr.. Butler-Ony when he swears that he has
not drawn the interest. Why should not the tax
be deducted at the Treasury This very bill requr-
ed that to be done In the of railroads and bank
ing corporations, and to-day railroad bonds We're
going abroad bearing seven per cent interest in
order to compete with United States bonds that
were untaXed.
Mr.. Kellogg (Rep.) of Conn.,, asked Mr.. Butler
whether, he did not know that foreign holders of
these railroad bonds did not get the tull amount of
the interest without deduction for taxation:
Mr.. Butler replied in the negative. The railroad
companies were bound to deduct the tax.
Mr.. Schenck remarked that the tax thus improp-
ery withheld from foreign bondhoders was being
paid back to them.
Mr.. Butler asked why, if that We're so, there was
provision in the bill to perpetuate it? He did not
know any reason why the tax should be refunded
Great Britain now taxed her national debt in this
way, and always had done it.
| Mr.. Benton-Will the gentleman state the name
of any one who holds United States bonds and
swears that he does not?
| Mr.. Buter-He who can count the stars in the
sky may try to do that Laughter.) There
was no reputation in the proposition. All that
was in ii was to provide for an honest collection of
the tax. As to the gentleman's (NIr Schenck's)
statement that there right to tax foreigners
onheir property here he asked whether the foreign
ers who owned lands in the West were not taxed
for roads which they never used, and for schools to
which their children never went J? But Just as it
was advantageous to their property 10 be near good
roads and good schools, it was advantageous for
the foreign bondholders that the government should
have revenue to pay them their interest and give
value to their bonds AS to this affecting the life
of the nation, he denied the assertion. The nation
had conducted great war when not a dollar could
be got from the Jews of Amsterdam, and when no
Englishman would do anything but plumber Amer
lean commerce.
The advocates of equal and just taxation,
however, contended in vain In House of
Representatives with an overwhelming Radi-
cal majority, large majority ofwhich major
ity is composed of Presidents, Directors and
the paid Attorneys of National Banks and in
dividual bondholders, it was a foregone con-
clusion that continued exemption of the priv