Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1878-10-25

cessive by the exemption Of these bonds from
taxation, to be lavish in our generosity, and
especially to that class whose wealth is ex-
empted from all taxation. The honor of the
government is Just as much concerned for
those who do not hold any bonds as for those
who do. Are not the good opinion, the rights,
interests and feeling of the great mass of our
people, who toll and pay taxes, to be con:
suited, or shall we only consult the wishes OF
the untaxed bondholders?
Every consideration of honor, justice, good
faith, and sound policy demands that the gov
eminent pay the ive-twenty bonds In lawful
money as soon as it can be done (after the
maturity of five years consistently with main
tanning our currency at its present standard OF
value.
To promise at this time to pay the principal
of the 5-20's in gold or its equivalent, re-
gard as a gratuity to the bondholders, fraud
upon the tax payer, an act most dangerous to
the public credit and an act of fragrant injus-
tice and folly that the people would be likely
to repeal.
Many of the schemes of legislation pro-
posed in Congress in relation to the public
debt and the currency, instead of being
measures for the maintenance of the public
credit and the relief of the people, seem to
be for the purpose of fastening upon the ma
ton the present system, with its gratuities to
the banks and the enormous rate of interest
to the bondholders, thereby perpetuating the
present system of taxation.
The reduction of the rate of interest to the
bondholders would have the effect to reduce
the rate of interest generally, and the reduc-
ton of the amount of .. S. bonds by pay
ment would release for employment in other
ways the same amount of capital. -Four per
cent. interest on long loan is higher than is
paid for the same character of securities
abroad and our foreign creditors would gladly
exchange their 5-20's for such loan payable
in gold. Their present securities are not
worth but II, while English consols are worth
So. Give them the option to take a 4 per
cent. so year coin bond, free from taxation, or
take their pay at maturity of the 5.2O's in le-
gal tender. So far as the bonds are held in
this country, u per cent. 80 year coin bond
forever free from taxation, national, state and
municipal, would be equal to or 7 per cent
interest in gold; taxation on other property
amounting in all cases at this time in all the
states to not less than per cent and in many
localities to more than per cent To have
the bonds liable to any taxation would detract
from their desireableness, even at high rate of
interest, and would drive them from the coun-
try. To issue the bonds at 6 per cent. inter-
est and withhold per cent by the general
government, is simply absurd; it would be far
better to issue the loan at per cent. To dis
tribute that per cent. among the states, &C.
cording to the population, either wholly or in
part, is unjust and Objectionable on many
grounds, which will be apparent to every one
upon a moments reflection.
In conclusion, let me say that when Con.
gress legislates for the good of the whole peo-
pie and not to protect and perpetuate already
favored interests, the whole difficulty will dis
appear. Our interest bearing debt will be re.
duced to manageable limits Oar internal
revenue taxes can be abolished, except upon q
half dozen articles. Our impost taxes greatly
reduced on articles of necessity The world
will see that our burdens are not greater thar
we can or will bear Seeing that we have
debt OF moderate amount, an ample revenue
just and equal system of taxation, a satisfied
and contented people, doing just as we agree
to do and nothing more, not Ii bile to be flat
teded or cajoled or buled into promising tt
pay what we do not owe, making the best ust
of the resources we have, our credit will bt
such that those who have money to lend viii
be glad to lend it to us. Those who reall,
have money to invest look at the resources O.
nation and judge of them in the same man
ner as they would of an individual If a ma
ton mlsuses its resources, is careless in incur
ring obligations, incurs an immense debt a
an extravagant rate of interest, and imposes
Its taxes SO as to dissatisfy its people, anc
takes no measure to reform its past misman
agement, 1t is guarantee that its future cours,
will be characterized by similar recklessnes
and folly.
We cannot expect always to remain at peace
and to-day we an less firm than we otherwise
should be in asserting our claims upon Eng
land, were it not for our immense debt If W,
should become involved in war, would no
every capitalist enquire whether the peopl
would have the ability or inclination to pay tn,
interest on the additional amount of deb
necessary to be incurred to carry it to sue
cessful issue? Another war and financia
management or Encouragement similar t.
that which the country has endured for tn
last six years, and we are hopelessly in debt
and you and l and the bondholders can i'm
agine what the result will be.
Very respectfully,
Your ob't servant,
Dr.,