Weekly Trinity journal., 1877-10-06
SOLVENT DEBTS,


aim of the people who are to live under it
for probably quarter of century, TO
make it as perfect MS possible, and have
its provisions SO simple that their inten-
ton shall be obvious. Upon some of
the points in which changes will be urged ,
there will DC no di ference Of opinion ex-
cept rs TO tho charncter of the proposed
change, but upon others, we must expect
that conflict which diverse interests will
always call forth.
One great reform in the Constitution
must be made in that portion Of the Dec
larati0n of Rights which declares that
taxation shall be uniform and equal"
/ Under the construction of Tint clause by
the Supreme Court of this State in late
years the burthcn of taxation is shifted
from the shoulders OF one of the wenlthier
classes, and saddled upon tho industry
anG enterprise Of the State. 1t is held
under that construction that notes, bonds,
mortgages, book accounts, and solvent
debts of every description are not liable
to taxation that a note, or debt, is not
money but simply promise to pay mon
ey, which money is already taxed in
another form /; that to tax the money in
one mans hands and tho obligation to
pay it, held by another is double taxa
ton, aud consequently not "uniform and
equal" us prescribed by the constitution.
The argument tor this is very sophisti-
cal that whore n sum Of money is loan
ed and an obligation to pay it given no
now wealth is created, there is simply the
same money value rs before. Admit
ting this we come mt once to the fault OF
tho principle, which j. that the borrower,
not the lender is the one compelled to
pay tho Tux upon this money value. Tho
lender rests in perfect security, he rccelv-
es the protection OF law while contrbu-
ting nothing toward its maintuinance.- -
Such a construction of our fundamental
law cannot but prove injurious to the
best interests Of the State. There cnn be
enterprises calculated 90 promote tho in
dustry and prosperity of the State, if the
capital invested in them is to be taxed
while the same capital ifput into the form
of Il solvent debt would wholly escape its
share Of taxation. We submit that such
Il construction Of law is one which culIs
~ fnp DO ,p /. 40,
arisGs-wil remedy be found ? 1t de-
pends altogether upon the temper and
character OF those who will constitute the
Convention. Capital i, proverbially sol
fish, but it is not slow to perceive it, own
advantages. And it is nm unfortunate
fact that legisatvcs bodies aro not above
the scductions of the jingle Of gold coin.
That capital will make lavish outlays to
furthor its interests, the history Of the ex-
posures Of legislative corruption in lato
years is ample proof. On this very ques-
ton OF tho taxation Of solvent debts, mon
oy was used freely in the legislative sos-
sion Of 1867 68 to procure favorable lcgis-
lNtion. This was before the Supreme
Court had construed this provision OF the
Constitution to suit tho money kings /;
and it looked ms though they would have
to pay on their wealth. The bill to TO-
lease the taxes due in San Fmncisco was
earnestly pressd; we say San Fancsco,
for there wns where these demands wcro
owing although the law was proposed to
be general. 1t passed ono branch of tho
legislature but failed in the other, and
some months altelwnrd John Nugcnt,
the lobby agent sued the banks for whom
he was acting for $l50,CCO, payment de
mnnded for getting the work hdif done.
1t was understood that Governor lIaight
stood ready 10 sign the measure il it
reached him, which is not to be wonder
ed AT, as he was of counsel for the banks.
II the moneyed institution could afford to
disburse $500, Geo to pass Il bill to remit
the tax which has accumulated IN few
years, it stands to reason that they will
"come down" handsomely to Incorporate
'''uSo II thd thIHtI'GtlOu TcCoS1lHn K
the principle entirely, aud it is such leg
islation the people have to dread. There
are some wild theories Of legislation pro
posed in this State, and it is more than
likely they will find moutbpieccs in the
Convention. We believe the calling of
the Convention at this time to be n gland
mistake; one which may cost the people
dear in the end if the character of the
delegates is not looked into closely. In
the teIection Of delegates there is no polit-
zeal question at issue, and the choice Of
them should not he made upon political
basis. Aud on this question of taxing sol
vent debts, especially, tho candidates
should be sound to the core.