The Portland daily press., 1879-01-24
New York World.l
A Word or Two With Maine.

An esteemed contemporary in Maine, the
Eastern Argus, asks us two or three questions
which, as they seem to be put in good faith, we
are glad to answer. 1t desires to know in the
FIRST place why the World says that the Federal
Government has 40 right to issue legal tenders
% currency, and we reply that the World says
this because in the first place this ia the con-
clusion to which we are compelled by our read
ing of the charter by which the Federal Gov
ernmsnt exists; and in the second place be-
cause we have yet to hear of a single Demo-
cratic lawyer or jurist whose name appears
either in the reports of the Supreme Court at
Washington or 10 those of the highest court of
any State as arguing important causes therein
who has ever maintained contrary opinion;
and In the third place because an unpscked
Federal bench has so declared, although it is
true that a court packed for that special pur-
pose did by bare majority of one reverse the
judgment of that unpacked tribunal; and
finally because the majority of the packed
bench did not venture to declare that Congress
coul create legaltender currency, excepting in
time of war and as a necessary means of bor-
rowing money.to support an army raised to
fight for the national life.
The Argus also asks us why the new Federal
currency, to be priptt as the only notes to be
issued by banks, may not be commercially as
good and safe as notes issued by well-maDaged
associations in conformity with sound banking
methods. We really cannot answer this ques-
ton, for the simple reason that we have never
seen any authoritative exposition of VIVA. this
new Federal currency is to be. Are the new
nnkoa ha nrOmisps IN sfdnllo ot
specified time, or are they to be mere certifi-
Gates Of dollars and pure "fat" documents new
OF to be paid? 1t the latter, then the answer
to the question of the Argus is obvious; but II
the former, we ought to know whether the dol
lar of payment is to bs gold dollar or silver
dollar, and whether the payment is to be on
the demand of the holder, and whether the
coins necessary to pay the notes are to be ear
marked and sacredly kept in the Treasury, dol
lar for dollar, to respond to the demand. With
coins behind the new notes those notes would
be based on capital the interest on which the
which are to use the new notes to be RESPONSE
BILE for the payment in coin on presentation to
The issuing bank, or must the holder present the
new notes to Government sub-treasury?
Our contemporary is also mlsinformed about
the burden of taxation borne By the national
banks If it really thinks that this burden was
less than four millions in 1877. For the year
ending on June 30, 1877, the taxes were:
Eederal taxatlon.' ....''....'.'."."$7 221 221 Sc
cta1e ta1a'ion' 122 0O
Total. al..........."........... .$17, ,2s7 ,343 56
For the uexs year the sum total was:
Eeoefai taxaton. ......"..........$69 998, ,926 10
State taxation, estimated 1929 3u4 90
Total. l................."..... .$15, ,s2s 230 70
But the annual gold interest paid By the
nation to the banks on the bonds bought and
owned by the banks aud deposited BY the
latter 10 the Treasury to secure the redemption
OF their circulation in Rreenbacks amounted to
7,3l1 053, or to sum larger than that of the
total taxation. But does the State of Maine
expect to be permitted to tax or doss it expect
that the nation will tax the new Federal notes
Any more than the present greenbacks? No
Federal bonds or interest bearing securities, or
non-interest-bearDg currency Of the United
States are now taxed in this country. Gold
and silver coins cau be taxed in Maine like any
other properly. Do the farmers Of Mape wish
to see their neighoors hold any more untaxable
Federal bonds or Federal currency? Already
the great corporations which invest their
capital in Government securities pay not one
dime OF taxes for the protection which the
State gives to their property. Possibly the
fasmers of Maine banker after the imposition
OF beaver taxation on their land and buildings
in order that Wasninlton may issue a green
back banking currency!