Wyandot County Republican. [volume] (Upper Sandusky, Ohio) 1869-1903, 1870-04-22

poses, by persons who design to put
them npon the market whenever the
advance shall furnish a sufficient in
ducement, or when political or f.
nancial disturbances may create
demand for money for other purpo
ses." -
DISPUTED QUEsTIoNs-PAYMEN IN
GREENBACKS-TAxA
These disputed questions are,
whether the five-twenties are taxa
bic and whether they are paya bic in
gold or "greenbacks. SsrA
On the 22d, June 1864, when Con-
gress was considering one of the
bills to authorize an additional five
twenty loan, Mr.. Brooks, of New
York, moved to amend by insert
ing the words payable in coin"
Mr.. Hooper, of Massachusetts,
said it was unnecessary, and let
ter was read from S. p. Chase, then
Secretary of the Treasury, in which
he said:
..These bonds, according to the
usage of the Government, are paya-
in coin" l52sF}T.a
And thereupon the motion Of Mr..
Brooks was withdrawn. Every
Secretary of the Treasury, since has
declared the same thing. 45
But the obligation to pay in coin
has been denied inCongress and out
of it, in grave official State papers
in newspapers,by State conventions,
and on the stump. The first act of
Congress approved by President
Grant ON the 18th of March, 1869,
to strengthen the public credit by
reatfirming the opinions expressed
by Secretary Chase, is liable to re
peal, and is by no means final. 1t
was well understood in Congress
that this measure was designed to
be followed by others to relieve the
people of some of the burdens of the
national debt, and this was urged as
reason for its passage. The ques-
ton whether these bonds may prop
erly be taxed under national author
ity has given rise to equal contro-
versy. The result has been as stated
by the Secretary of the Treasury,
that the bonds are not generally held
for permanent investment.
Now, the bill 1 am considering
proposes to settle these questions
by funding the old bonds into new
ones to be issued, payable in gold
and exempt from all taxes under
State or national authority.
The Supreme court has decided
that without this no State could tax
national bonds. And as to national
taxation, the bill follows the recon
mendation of Alexander Hamilton,
who, in his second and last annual
report on public credit, on the 18th
of January, 1895, recommended to
Congress
"That there be an express renun-
citation by law of all pretcnsion of
right to tax the public funds.''
Sufficient reasons exist for this.
If an unlimited right of taxation is
reserved purchasers cannot be found
tor the bonds; or if so, they will ON
ly take them at price reduced more
than sufficient to indemnify them
against any probable rate Of taxa
ton; and it will cost the Govern
ment less to pay bonds at low rate
of interest than to collect taxes and
pay officers therefor on bonds bear
ing a high rate. By funding at a
low rate the tax is taken out in ad-
vance without cost of collecting it.
BONDS YIELD TAXATION. .
No matter what the rate of inter
est may beCongress treats the bond
holder and the landholder alike.
Congress taxes neither lands nor
bonds. but it taxes Incomes from
both alike. Ofthe bonds $755, 49,
097 held by national banks, savings
banks, and insurance companies are
taxed, not as bonds, but as incomes
and corporate stocks invested in
them for all State and local purpo
ses as other property. The money
or property received for $SOO,OOO.-
600 held in Europe is taxed here for
all purposes. The residue is held
largely by trustees, guardians, wild
ows, orphans, and as investments
for the earnings of the poor.
GOLD OR NEUTRALITY-SUSPICIOUS. I'M
MATERIAL.
II this bill should pass and be
carried into execution the question
whether the bonds are payable in
greenbacks or gold, all these exist
ing questions will be immaterial.
Then no questions of broken ma
tional faith will impair our honor or
stare us in the face if in a future
emergency new loans will be requir-
ed. If paid in greenbacks they in
turn promise payment in gold. To
raise by taxation greenbacks to pay
the debt is impossible, and no man
of any party now advocates an issue
for that purpose. Neither the ad-
vocates of gold payment nor of
greenback payment will have any
ground of complaint, since a new
contract will be made securing alike
the interests and honor Of the ma
ton.
The uncertainty as to what fu-
ture Congress may determine as to
taxation and the mode of payment,
and the demand for loan safe as a
permanent investment in Europe or
America, will aid in rendering it
practicable to fund the debt. The
national debt of Great Britain in
1869 was E75O 100000, and 8 per