The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-07-02
FORTY-FlRsT CONGRESS-.
SENATE.
WASHINGTON, Juiy |. $50

WASHINGTON, July l. 1870.
PRESIDENT PRO rEaPoRg.
Sir. ANrHONy, trep.) Of X. l., was elected Pre.i-
dent pro tenpore in consequence Of the absence OF
de Vice President until after yuly4.
TERMS or FEDERAL COURTS IN ONO.
The House bill TO change the time for holding
Terms OF the District and Circuit Courts for the
Northern District of ohio was passed
~A-.- BILLS REPORTED.
Mr.. PoaEgoY, (rep) Of Kansas, from the Commit
tee on Public Lands reported the Dill introduced on
the previous day to promote railroad communication
in The Southern States. Also bills establishing
right OF way OF the Portage Lake Improvement Com
pany, ana granting lands Tor the Improvement OF
Sturgeon Hay.
raE TAX Bull.
AT a quarter past twelve the Tax blll was taken
up tie question being upon The amendment to lax
the interest on United States bonds Ave per cent.
MIR BAYARD dem Of Del, advocated the propo.
srion which had been made at his suggestion, a.
bringing unner taxation species Uf property which
had no claim to exemption.
Mr. EDMUNDs, rep of VI, characterized the pro
position direct reputation, nntenabie on con
sttutonai grounds, not To say dishonorabe. II the
principle was correct the government might take
nom the bonds fifty or one hundred per cent, and
thus repudiate the whole interest.
Mr.. THURMAN, (dem.) OF Ohio, denied thar there
was any substantial difference between taxing The
interest On the bonds and the taxing OF income. II
one WAS Reputation 10 was the other The only
iota OF difference was that by this proposition the
government goJ five per cent the entire interest
OF those bonds, whether heid at home or abroad,
while under The Income Tax law our own Dondhoid-
ers were taxed aud foreign holders went free. Ne
asserted the government had never promised II
would not tax che bonds
Mr.. snEfuAN (rep,l OF ONO, said this was an
effort TO create income tax directly discrtmi.
mating against government bonds II TO the
honor OF The country that since the foundation of
government until very recently no such proposition
KIND tolerated Congress would soon discrlmi.
against other individual interests such as shin
ping ana cotton, TO the great injury OF commerce
and the southern people. be looked upon IL as a
mere political dogma.
Mr.. nAvis tdeml OF KY, said he was amused 10
gee gentlemen who were chin deep In repudtatiOn
affecting 10 be horror stricken at the idea or taxing
the bonds. lie called attention TO the persistence
with which the Committee on Claims hau refused to
make compensation for private property taken for
public use, repudiatiDg the obligation OF the govern
men 70 pay 1hose Claims This Indebtedness to-day,
70 the states OF Kentucky Maryland and Others not
In rebellion, amounted TO ten millions
Mr. CoRBaTT, (repl OF Oregon was hostile 20 the
amenpuens, rs opening Tie doors to a coalition be-
tween the democratic party and the South, with q
view 70 taxing the bonds to an extent to make them
as worthless as Confederate scrip.
Mr. RICE, rep.l OF Ark. remarked that the tax
was to be imposed upon the interest as property,
While favorable TO an Income tax he would NOT Law a
direct Tax upon property
Mr. MORTON, jrep.l Of Ind, ieid that the withhold
ing OF Onehalf per cent would be violation or the
contract between the governments aud the bond.
holders, by which the former was pledged TO pay
Mr.. STOCKTON. DEM OF n. f. said ne was unable
to see any difference between the proposed tax and
THAI imposed upon the salaries OF government OIL
GERS, by Which the government withheld portion of
their compensation.
Mr. CAssERLy, DEM of Cal, held that the power
10 tax the bonds was derived from tne inherent
right OF the government 20 tax privileges and bone
its expressly conferred. IN reply TO Nj. morton, he
argued thar the Income tax operated upon incomes
derived RON bonds without any charge ~ violated
contract. Ia answer 10 MT, sherman, he SAID there
was NOT page on the list that ala no, conta n Js-
eliminating taxes the principle VI excise law being
OF discrimination. n.. b
NJ. FENrpS, ,trep.) Of \. v, explained maj be
vVbtd Tor the amendment the Previous ryenlAI