The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-10-24

ss.ssssshns.sv-of.tneE JHrnaE
-. - 81 ,hs leading objections most cop 4
.,s..,y urged bs the Read ussers agsinf tiRe
mCurLeca biI, is Its non,taxaels iea.a, IS
= exenrss from taxation The bonds neso y
nur creditors, Say they. while I'll 81. oi.,ou
,,sn,,a are itacxel on all they own, bosn 9.
,,ers,na Il ana real estate. This afgpnenlt ol
rs,,rss l,ka nil of their other objections %
~ asct.ms non bill, isentireiy iallasons AZ
sact and 10 addressed simply 70 ese sgno i
,nnc.s and cup,dity Of the taxspasrr LOT no
ssnsitle man win give Il the least creden'cse
or force whatever. :. s.. 3
1et,us dissect this fallacy @sa moment.
! -, ,,on-taxable bonds to be found mo-
,rhere In the world hut IN Virginia. Arg
they new thing 10 Offend the people ana.
elicit hostility to bondhplders ei4Afe llnes !,
MOTTO be found In every nation ano Rops
govern rnent that has a public debt 60 n ~
o. controls How many millions OF sucn q,
bonds are to be found issued iiol, .Ds
treasury OF The United States Z AN un'tss
Statse hcpds are,non,taxable, ana are no"
80 Il, foand in every market. Indeed, u ~
were mot for this popular ahd valued lea
snre Of bonds, nations as well as CITY cor
nora,ions would frequently be- unable 70
sorrow money at oil except at most
rnluorfs rates OF interest; for pfuaene
). r.anitalhts-and they become caplsatistS
By being prudent--weuid NOT ioa.,
rbe;r nancy to a party who, IL lt taxed
sat all, could tax them out OF both tae prin-
.c;na,and interest OF their bonds. Again,
white they are called non-taxae'e ponos'
,uet IN one sense IL Is q misnon1er, Tor reafiy
,surh bonds are as heavily taxed as any:
other species Of property. They are a ara
.aared anhen then are first issued. But ior
,this non-taxable feature In our un'eea
States bonds the Government couid not
nave sold per cent. bonds at all. IL was
:, w,se financial transactions, therefore, on
sshe mart OF SHERMAN to issue that class OF
securities, for otherwise the Government :,
which is the people-would have hao 70
.rontinue to paw per cent, aud thus wouia
shave paid millions OF dollars more on our
'5onds.
In this plain view Of the question let us
state the case OF The debt OF Virginia under
the McCuLLocH bill. 1t 10 true these new
bonds are made non-taXable, but 10 Jdct
they are the most heavily taxed and op-
nressiyeIy burdened bonds that were ever
issued in this or in any other debt-paylns
State or country in the world. In the FIRST
place, one third Of the principal Oh the. deot
Is deducted By the bondholders to start on.
That is certainly most onerous TAX 10
imnose on honest creditors. But this
was assigned to West Virginia IN
1871, and again by this bill. In the
next place, our bondholders have reduced
their rate of interest from 6 to per
cent. for the next ten years, aud to an
aggregate OF 4 per cent. for the next forty
years. Next they threw Oft hall the ac'
crued interest on the peelers. These were
voluntary acts on the part Of our creditors,
and constitute certainly the highest ano
most oppressive burden OF taxation ever
Imposed, aud generously submitted to by
bondbolders. This is the situation as ar.
ranged under the McCULLoCH bill-one
third OF the principal and more than one
third of the interest lost to the bondholder
forever, in addition to the years OF previous
delay, yexation, and uncertainty which have
attended the adjustment Of this question.
Now, in the face OF these plain facts,
fully comprehensive by every citizen OF
common sense, we ask the honest people OF
Virginia, whether they are Debt-Payers or
Repealers, taxpayer or non-tax-payer, II,
after the great advantage gained by us, and
this excessive deduction OF the principal
and the interest Justly due our creditors, it
would be Just or honest in Virginia to
subject bonds thus shorn Of one bali their
value TO the burden OF increased taxa
.tion? On the contrary, would it not have
tbeen the greatest of outrages for those
,who framed and made into law the Nc.
.CvLLoCH bill 10 have omitted its non-taXa-
bile feature? To reduce mans principal
,one third and his interest one half, and
'thenstax the remainder, would be down.
;right-repudiatIon, with highway robbery
added TO the crime. It Is poor interest
land q poor principal at best that the bond
holders are left to receive, while the people
OF Virginia are released from millions OF
honest debts long due and iaitblessly tam:
.pered with. ...,..s.--.--.-,....~ -.-.-.-.-.,
But suppose we admit that this non-tax.
liable featnfeof the MCCULLoCH bill is OBJ
.dectionable, :and that Virginia ought to FAX
: herown bonds like other property, after
having sealed them to the very low figures
we have. Just indebted, let US ask the sens''
BILE reader how at would he possible TOT Us
to proceed about&te OF The $s2,0eo'ooo o.
our debt only about 49,. 100000 OF u II
owned in Virginia. .Aata.S Dill couio " '.
made to reach tAat amount, owned prin'f
paiiy by the widows aud o. Tphans OF tn'
gallant husbands and fathers VINO dlea VI
the battie.felds ct our late " ar; out tn'
remaining s2A,oeo, 600 Is owned OUTSIDE o .
the State--ln the North and in .Engiand
How would it be possible for t. s&-iaW o.
Virginia 60 reach its Those bonds are mos
probably taxed where the holders II theu
reside: and whether they are or no 7, it i
entirely beyond the power Of our Il 'gisla'
ture TO reach them Wstha tax-bill, so that
NO possible State revenue could be der. iVed
from that quarter.
For the Repealers, therefore, to harp n
cessantly upon the non-taxable feature II
the McCULLoCH bill is simply the .clamor o. I
the delnagogue to mislead and prejudice the
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