Evening star. [volume] (Washington, D.C.) 1854-1972, 1875-03-30

tatlohs oetoTe The class referred Ia. knowing
at the time. as 90 must have known. that
weakness would Weld. aud by yielding -
made wea ker. l. GinacflN responsible fOT the
demoralizaiion that would follow the com
mission OF a first offence. Your committee
believe that the first and paramount duty at
q legislative body IN a free country. IL. 10 10
lIterieres with The private matters OF the
people at all. Ia encourage virtue and
strengthen integrity. and neither directly
nor lndirecily impair and break them down
Under the instructions issued by the Com
mlssloners Tor tho eNecstion OF the law in
QUESTION, money GA deposit with any person
or hahk anu moneys In actual possession.
are 10 be returned by the citizen as forming
part OF The personal estate made liable %
~. ionr committee do not believe
gress 10 levy tax upon the circulating me-
dunn which the rapid transactions aud iu-
terest OF trade demand. should pass from
hand 10 hand freely without incumhrRnce
and be continued in the market for the pnr
poses OF exchange. The enforcement of this
provision OF the law In the mole prescribed
DRIVE THE CIRCULATING MEDIUM FROM
THE MARKET
10 seek protection i'm non "a xahle securities
from the burlen VII ich threatens ~ Al n re-
mains I'm circulation. Alter the period OF
danger has passed, IL will again come forth
10 perform the Office in the community for
which ~ was designed. IL follows therssfora
That under the operations OF this law in ~
gard 10 The taxation Of money. there will he
regularly recurring periods when it, with
drawal from the market must
INEVITABLY rEoDCCF FINANCIAL PARoN-
NSNS
Of greater or less severity. such rasu,,s
could not have been intended nv the Con
gross of the United States. They could NOT
have intended la bur,ien this essential agent
In all trade transactions 50 that 10 could no
longer perform its proper Office with alacritv
Nor could the Congress oI the United States
have designed 10 tan the legal tender notaS
Of the United States, made non-ta Nable by or
under state or municipal authority Tine
notes OF ne government are ITS promises To
pay To The holder. and their taxation wouli
he I'm bad - IN - the people, and would ope-
rate. according To the measure Of the tax.
either as n partial or entire reputation. II
they can properly ne taxed one and hall
per cent. under one supposed emergency thew
can he taxed twenty hive per cent. under
another, OF fifty under another. or "A hundred
under another. and when this point is reached
NE note Itself must De- given up I'm liquida-
ton OF The tax, ana we have then accom-
plished, indirectly, under the forms of laws
The shameful experience nj national repudia-
ton. do not suppose for an instant that
this result can under any imaginable state of
the case, or any possible circumstances. be
reached. hut tie principle which would for
bid taxation AT the limit where 10 would he
come repudiaiion, applies "a principle with
The same lorce 10 any tax, however small.
although the couSeq uences would not h -
monstTous ant 81 such great lniquity.
THE TAN DISASTROUS UPON CREDIT TRANS
ACTIONS.
am instructed bN the committee 10 say
that they can not believe that ID was the pur-
pose of Congress 10 burden this community
with SO disastrous a tax that upou credit
transactions. Tire prosperity OF every com
munity il deeply involved in the cul lVation
of a close AMI harmonious alliance between
capital and labor; and no laws are - blight
ing TO the prosperity OF n people as those
which unrcaSouahly embarra>s the free use
OF the money of the capitalist Dy labor and
enterprise Realized capital seeks such in
ve>tment a. viii secure adequate remuuera-
ton. and - never 50 beneficial 10 a country
as when it, young and entcrpriSing citizens
without means can be allowed TO use n
through the credit system. Under the opera
ton OF this law. a the Commissioners pro-
pose To execute ~, industry and labor. seek
ing 10 borrow that they may realize enter
pTises vastly To their own well 10 the
public good will be req ired in ldition 10 the
! Interest demanded by tnelendcr. % pay a large
/ per centage 10 the government as a considera-
4 ton for the privilege Of making the loan. ID H.
! true the law says. and the instructions say
4 That the creditor must pay the tax; bur who
does not know kOw futile y such "A mandate
IN practcaliy placing the burden where a.
indicates that IL should rest. The capitalist
can exercise his discretion, and may lend OF
/ not. al his pleasure, or, ii he does not choose
either 40 hoard or lend, may invest his sur
/ plus in non-ta Nabie securities, but the indi-
| gent borrower il compelled 10 have the loan.
I or submit that his life shall be failure, and
/ allow his vigorous energy To waste in use
| lessneSs. He must. therefore, accept such
| terms a. capital demands, whether they he
| moderate or harsE, and even ifthey should be
so severe that failure will follow, IL IN better
TO tail Than lot To try at all, though ia the
failure he and the community share a com
4 mon loss. SunpO~e a capitalist Is willing 10
invest Ia q loan 10 some enteTprising man at
SIX per cent. As six per cent Is the amount
he deems IL important for himself 10 realize
/ from his investment. ne must, under the op-
\ eratlOn OF this law. Increase the rate of in
terest to
SEVEN AND HALF PER CENT,
n order that he should actually receive the
amount OF income he thinks his money should
yield him. Whilst, therefore, by the terms
OF the law, he is required TO pay the tax,
! under its practical operation. il is i'm fact
paid by tie borrower. This law, therefc -
as stated in the resolutions. i'm the part Src
10 which j am now referring, is S S,.l,s.
poverty and labor, and not urs - 90 uPoh
and wealth, and may add q o., r., " 1ace
nifty where capital IL p"uo,,ersa -, on, M
penSe OF labor, and q ,uerprise ma e,ar1 en
not Iosterea' e-.coOIaged and assisted de-
SanSis,, ~ ye blasted by financial disasters
The committee have further instructed me
20 say ihat they regard the tax upon money
secured by mortgages and deeds OF frnst AMI
me tax upon The property so incumbered an
-" same time, ~, in their opinion a douhie
tax upon she same property, and is a burden
OF such manifest injustice that they canned
believe il to have been within the confem.
piation and intention pfCOngreSs. The char
acter and oppressive nature o. this burden il
most palpablH manifest where the deed OF
trust or mortgage is given To secure The pur-
chase money OF the property so decided m
trust or morigaget. II. FOR instance, a person
should purchase a piece OF real estate at nfsN
thousand dollars entirely upon credit, taxi
his deed from The vendor, aud execute a deeH
oftIust or mortgage to secure the payment OF
tlle purchase money al certain future periods
OF time the wealth of the respective parties
would not thereby be Immediately increased
Tor would the property which existed
beiore and which consisted i'm the real estate
be doubled IN value, or increased I'm value
al al: for the notes given for the purchase
money do not constitute in themselves am
independent substance of property. but are
simply the representatives of the property
which is the real estate. and the amount of
property which existed before The sale.
namely, nifty thousand dollars worth of real
estate iS. therefore, in fact. ONLY fifty
thousand dollars still Now. under the law.
as construed by the Commi seioners this
property. which IL only fifty thousand doll
lars, Is 10 he taxed as a hundred thousand
dollars, by levyiEg the tax upon both the
substance and the shadow. The committee
do not believe that Congress igned 20 vio-
late these two universally recognized rules
OF taxation: first. that all taxes shOu Id he
uniform, and second. that the same tax shall
never be twice eXacted from The same prop
erty.
The committee are also impressed with the
belief that the mode OF executing the law is
grossly unjust in limiting the set OF Of debts
10 credits only, ard not allowing them TO be
sci of against the amount of property the
Individual may have i'm possession. There