Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1878-08-16

In - IAoIIk -
was in danger, nearly, if not every, Demo
crat in Congress voted against "the legal
tender act, b" under which these greenbacks
were and are now issued, because it was un-
constitutional, and the Republicans voted
solid for it as a "war measure" 1t is,
therefore, difficult to perceive how Demo
Gratis can reconcile their former conduct by
favoring an unlimited issue of greenbacks
The Republicans contended that they were
made legal tender as "a military neces-
sity," and the Supreme Court of the United
States concurred in the same opinion as to
contracts made after the passage of the act.
When the military necessity ended, they
simply stand like other promises to pay,
without intrinsic value in and of themselves
But, say these wiseacres, these Government
bonds must be taxed. Who ever heard of a
| government taxing its own securities? 1t
would be like man taking money out of
his right pocket and putting it in his left
pocket. The result would be the same
These bonds are now taxed in the only prac-
tical way they can be reached, namely. by
being offered by the Government at four per
cent interest. free from taxation. Does any
one suppose that these bonds would ever be
taken at those low rates if made subject to
taxation? An individual executes mort
gage OF his farm. 1t is mortgage of some
thing having an intrinsic value. But when
the Government issues its bonds, they are
only promises to pay. Ii ever paid. it must
be done by tax, direct or indirect, on the
people. There is no mortgage about it, A
mortgage cannot be executed by, or fore
closed against, the Government. The Gov
ernment cannot be sued by an individual or
corporation in any such way. II Congress
refuses to provide means for paying them, it
is reputation, and their collection cannot
be enforced BY law. They are, then, no bet
ter than "old Continental." or brown
paper.
The Government, however, has managed
to eyade this matter of taxing the bonds held
as collateral BY National banksby taxing the
privileges enjoyed by the banks, as above
stated. These banks were started to aid the
Government in its dire necessity They are
now helping it, by taxation, more than any
other class of property, as appears from the
6nited States Treasurer's Report, and es-
pecially from the Comptroller OF the Curren-
cy's Report for 1876, page 81, which says:
"The Government is receiving revenue
from the banks which is more than equal to
all the taxes paid by them before the war
while the States are also increasing the bur-
dens which previously were as great as
could be borne. Within the past
two years, seventy-one banks, and since
the organization of the system two hundred
and seven banks, have gone into voluntary
liquidation. chiefly on account of excessive
taxation. while during the last year fewer
banks have been organized than in any pre-
vious year since 1869 and unless some IA
vorablc legislation is obtained, very con-
siderable number of banks will retire from
the system to engage in private banking"
In previous reports. the Comptroller has
called the attention of Congress to the fact
that the amount of tax to which the Ma
tional banks are subject (the average rate,
including State and National being about
three and One-haT per oentum per annum) is
much greater than that imposed on any
other capital in the country.
The Government Is doing all it can to
solve this great financial problem. 1t is
following the course pursued in the history
of every other nation on earth, and is
receiving the assistance of these National
banks in their great work. foreshadowed by
Abraham Lincoln. when, in one of his an
nual messages, he says "A return to spe-
Gle paymsnt at the earliest period compati-
bic with due regard to all interests concern
ed should ever be kept in view. Fluetua-
tions in the value of currency are always in
curious, and to reduce those fluctuations to
the lowest possible point viii always be
leading purpose in all wise legislation. Con-
yertibility, prompt and certain convertible
ity into coin. is acknowledged to be the best
and surest safeguard against them.'
Andrew Jackson said, on the same sub
ject; There never was, nor never could
be, use for any other kind of carrency than
is rcdecmable in specie, except for specula-
tors and gamblers in stocks. and this to the
utter ruin of the labor and morals OF the
country. \ specie currency give life and
action to the producing classes, on which the
of all is founded"
From the foregoing facts and figures, it
must be plainly seen that all hese pretences
Of the Greenbackers are without ]ounds-
tion. 1t will he seen that the National
banks by excessive taxation are strucglin
for an existence, with their surplus greatly
impaired by heavy losses. 1t will be noticed
that the Government is doing-what it is
its bounden duty to do-all it can to
float all the greenbacks in its power and
keep them at par, and save all the interest
possible. And especially will it be noticed
that the effort of Ben Butler and Brick
Pomeroy. and their eoadjutors, to bring dis
aSter on the country,-which the steady and
answering policy of the Republican party,
with the cooperation of most of the renre-
sentative Democrats of the country, has thus
far averted since the rebellion,-is the hobby |
of demagogues and politicians. Let not the
sturdy. sensible men of the country be de- |
ceived by them. Rather let tho people re-
turn to their old habits of economy and iru-
gality, as the sure and only certain way out |
Of all our financial difficulties.
Yours, JuSrICE.
"impossible TO Pass Over -"
1t has happened more than once that the |