The Hickman courier. [volume] (Hickman, Ky.) 1859-current, 1871-06-17
For the Hickman Courier.
Taxing Bonds.
Br ". 4. MCDANIEL.

Br ". h. MCDANIEL.
The writer for long time, has wished
to discuss this question; and is much
obliged to"A." for introducing it. As
he seems to be "a" young man in search
of knowledge under difficulty, / will
assist him 20 the extent of my "knowl
edge" and ability.
The writer has always been opposed
TO government taxing its own bonds or
suffering any government. state or mu
nicipal to do,it He is opposed to it be
cause it is contrary to law. wrong in
principle and false in economy or policy,
personal and political.
1t has been decided in the Supreme
Court, John Marshall Chief Justice
presiding. that the States have no right
TO tax the bonds of the United States.
If. said Judge Marshall, "the States
have q right TO tax the bonds of the
United States at all they have right to
tax then to such an extent as to make
them wirthless in the market. No per
son wo,s&i,sy them, thur depriviug tpe
l.overr rrien,s o. its hnanciaI ability to
raise mopes in q time OF peace to pay its
regular expenses aud to defend its ter
ritory in var" I quote from memory }
This decision is like ball from rife
cannon straight ahead and cuts down
everything before it. Judge Story has
also rendered the same decision. These
two men in their day stood at the head
of the American bar, and as jurlsts, will
never die "
tits bad rule that will not work both
ways: what is sauce for the goose should
be sauce for the gander Suppose the
Federal government should tax the bonds
of the States, and so heavily as to make
them worthless; it would be lsughable. to
see the democracy about face" eud de
noupce the Radicals. Decentralization.
imperialism, 'Cesarism," DC, &c,
would be the slogan of the"unterrhed.
The saddle would be on the other hUrse
mighty quick.
A government as ''debtor" stands
on the same footing as all other debtors
aud is bound by the same laws of honor
as private citizens, in their pecunisry re
lations with each other The writer has
heard men say that they Lived on the
interest of what they owed" He is free
to confess be never understood the pro
position until this proposition to tax the
bondholder came up. "a says the
bonds should be taxed as property. Cor
rather asks the question: Very we'll, but
then suppose when you tax them az
property. you should destroy them as
properly Has q government right
to destroy the property of its citizens
l would suggest to the city council OF
Hickman to tax its bonds to the full
amount of the interest. They would
then be worthless in the market and the
council can buy them for nothing. This
is "a new way to pay old debts" | think
they might give me the freedom of the
city" if they act on my suggestion)
The true policy of the Government,
State and municipal corporations, is to
make their bonds more valuable at home
hs aS ddse 10 ess sss ISsS fs
boudhoIders were its own citizens. To
tax the bonds at home is to drive them
abroad, thus causing cesseless drain OF
currency to pay the Foreign bondhold
er," and money is the liie-blood of town.
1t looks ridiculous to see govern
ment or city pay its interest on its bond-
with one hand, aud take part of il back
with the other. Why not reduce the IN
terest to the amount of the isx2 But
says Que. I'VE promised to pay so much
interest and we are obliged to doit. Very
we'll. il is principle of law that you can :
not do indirectly what you have no right
to do directly
"a" asks if it is on the principle of
making the rich richer, and the poor
poorer. "Young man" ! love you, and
let me talk to you as father would his
son. Ii is an eternal law of political
economy that all the taxes levied on
capital. are paid by labor Taxes, inter
est, rent, are all paid by the surplus
money made annually by the labor of the
country, which is paid for in the name
of wages" which represents days
work, whether man works for himself
or an employer High taxes does not
make a rich man give his property away;
on the contrary it makes him accumulate
more property, and that too, from those
who have but little to spare. For In
stance, you may go to any country where
taxes are high and you will see the widest
extremes between wealth. and poverty.
II the rich man really paid the taxes.
why is il that he keeps on getting rich
aud richer. and all around him getting
poorer and poorer. The poor want to
plunder him, but they cant do 1t. They
go to the polls and vote all sorts and
kinds Of taxes on his property; bur
then he has forty different ways to make
them nav that tax 1t is like pack of
hungry wolves sitting round a tree TO
staryea fat bear into coming down SO
thew can devour him. That Bear is
.ca pitalist." "bondholder," and he can
STAY ugs;. that tree all winter. But ah
me, what become of the wolves died OF
starvation or gone to the ''poOr house"
High taxation is the root of all evil In
civilized community. 1t causes the cap
italist to demand higher rate of inter
est for his money which he lends to the
land holder, causing him to raise the
rent to pay his taxes on the land and the
interest on the money he borrows. This
rent TO be paid from the wages of the
daily laborer, who rents from him II
causes the merchant and grocer to sell
higher. The laborer is thus between
the upper and neither mill stone. which
as the taxes are raised grinds very small.
until he is ground to starvation or pau
perism
My Democratic friends, this is no
new departure" Our democratic fore
fathers never proposed to tax the public
creditors, or to der;ue repenue from
their otcn indebtedness They thought
it was mole honorable to pay principal
and interest. The democratic party has
d.