The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-03-08
Exemption as 1t NOW stands.

W. .>.sn,,oa no one as to either OF the
articles which we wro'e last week OH ''e
s,,,oo, % exemption Of bonds from TAXA
,;on. nor has anybody ever said woiu W
nc IN reference TO either OF them 20 tna'
,.o commenting articles OF " learned iength
ena laundering sound" with which our
learned contemporary OF Governor street
has regal,d its readers, were, so Tar as co"'
cerDcd its superstition TO the eoh'f''S'
founded upon nothing more sups'ah''s'
than i,s vivid imaginaion. How docs Tue
Wild know but that We we're coming 10 TUE
conclusion to which 1t has Jumped so eager.
ly namely, tba, II under the decisions VI
the Supreme Court OF the Uni'ed S'",eS
b,nds held outside OF this State cannot oc
,,xed In Virginia, and II the coupons can
mo, no taxed In the hands q purchasers 10
whose hands OF course all OF them wiz He'c-
after be found, the exemption oil N"s"''
bonds from taxation cannot he es'e'n'u
very valuable consideration oy per-
con, residing outside OF The S'aic
n, course. Il would be valuable
consideration technically. or as .con,ra-dls-
tinguished from good consideration; De-
cause within the limits OF Virginia the eX'
emplion would be equal TO percentage
VARYING from one 10 two. Thus the bonus
would he rendered 10 outsiders al least Il
LITTLE more salable aud yaluable-littie IN
deeG--by, reason OF the existence OF even
such a poor market IS THIS lmpoNeT's"o"
NaN.-
Commonwealth would furnish for non'laN-
able bonds OF her own uttcrance. Bnt aslde
from this fact, we cannot understand how
hopJs taxable where held, ana taxable only
where held, and not taxable therefore ~
virginia II held by persons residing outside
of her limits, can be rendered any more
valuable 10 these latter persons by beng eX'
empted from taxation in Virginia, though
the Wig seems TO suppose that we hoid tbe
contrary opinion.
The bonds issued under the funding acl
Of 1871 were not exempted from taxation.
We suppose that when that bill was under
consideration it was not anticipated that
the Legislature OF Virginia would attempt
by taxing the coupons TO tax bonds when
il had no right to tax. Nevertheless Inc
LEGISLATURE did afterwards tax them; ana
up 10 1879, when the MCCULL0CH Diil was
passed. The bondholderS had paid this un-
constitutional tax, without ever protesting
against il so far as we know. Ii was ouiy
natural, therefore, that when the MCCuL-
LOCH bill was under consideration the Dond-
holders should ak the Legislature TO pro-
vide against that tax. Such an exemption
was real consideration so long rs The cou'
p)ns could be taxed. Now, however, the
situation is entirely changed. The Su'
nrerDe Court of the United States has put
il, protecting arms around the coupon
holder. and forbidden his coupons to be
taxed in the hands a The man TO whom he
sell, them. All held outside OF virginia
are thus sold TO persons in whose hahds
they cannot be taxed. This decision rem
ders IL absolutely impossible for The Legs
ia,ure 10 tax the bonds he'd outside OF the
State. since the only door through which
they could be reached has been closed by
that most powerful OF all the judicial tribu-
nails in the world. .
What then! Why, il the Legislature
taxes ,he only state bonds it can taX-to
wit. those held in VirginiI-it Will di>crlml-
nate against our own citiz liz, and compel
them 10 sell their bonds 10 persons residing
I'm ether states and countries. A., now
ever, all the bonds held in Virginia do not
eoual in value the assessed value OF one
-. 10 rif u nj
Richmond alone, it may be thought unhe-
cessary TO turn the world upside down on
account of such Tax. when the Virginia
bondholders can so easily lind market for
them in Baltimore and other cities where
the Spectators are, as ANDREW JOHNSON
once said, more for Us than we are for
ourselves" and therefore pay even now The
highest OF prices for Virginia bonds.
We have in this discussion shown, or
tried ID show
l. That on nOn.tax able per cent. bonds
purchased at par from the State Issuing
them. the tax is paid in advance.
,. That so far rs bonds are concerned
which bave already been issued under law
As 10 taxing them ought 10 be raised. The
contract will be protected by tue courts, If
it can be protected at all.
3. That the Legislature exempted the
bonds issued under the MCCULLOcH bill
from taxation as an inducement 10 the
States creditors to accept the reduced rates
OF interest provided for in that bill. At the
time Of the passage Of that bill, bonds held
outside OF Virginia were taxed through
their coupons. This cannot be done now.
Therefore, hereafter it will be no considera-
ton 10 persons residing outside Of Virginia
for our Legislature TO offer TO exempt Viz.
GINA bonds from taxation. And in this
connection we reproduce the following
paragraph, after reading the wings COM
ment Upon il, in order to make it more
clearly express our meaning:
Practically [ihat is. in the light of the
decision OF the Supreme Court OF the United
States, above referred to], the Legislature
proposed 10 except from taxation only so
much Of the thirty-odd millions Of debt a.
was held in Virginia-say some eight or nine |
millions OK dollars. The rest OF the bonds |
arc owned outside OF The stale. II, there |
fore, all the bonds now In existence were
taxable, The State OF Virginia would derive |
but little revenue from them. Valuing them |
at eighty cents, those owned in Virginia |
would furnish taxable basis not exceeding |
seven millions OF dollars, and therefore |
could not yield to the State more than $35,-
coo year-a sum not worth dsputiny
about In this connection. II was too small
q sIm 20 cnnSliIuln a xalid nhinci inn o., fLo |