The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-04-29
THE FUNDING BILL

IL
house, too late indeed, for congress to take
any action on the matter. This bill contem-
plated the Issuance of bonds by the govern
ment at three per cent. interest, to be put
upon the market and sold at any figure that
could be obtained not less than par. These
| bonds were 10 be Issued the same as Inc
funding bonds ofls7O, that is to say, they
we're to DO non.taxable. How long
they we're to run, it is not necessary for the
purposes of this article TO consider, and
neither is ii worth while TO dwell upon the
nonsensicsl reasons advanced by MIR. Hay
for vetoing the bill, nor the ridiculous clap
trap and the most reprehensible and dis
graceful threats and efforts at intimidation
of some of the rational banks. 1t
Is evident that Mr.. Hayes was either bull
dczed by these banks or influenced other
wise. We prefer to assume that he was
really frightened into his veto message, but
let that pass The funding bill of the last
congress having heen vetoed, it will devolve
upon the next congress to pass funding
bill, for these outstanding bonds
about to mature, must be provided for and
taken up. As we said BEFORE the vetoed
bill, like tho funding bill of 1870, provided
that tho bonds should not DO taxed. We
take the position that this is wrong-wrong
in principle and wrong in theory. We can
understand why the original bonds issued by
the government were Lot taxed. IL was
during the late civil war. The government
was bound to have money to provide the
munitions of war and to support its armies,
and extra inducements had to be held out to
capitalists TO get them to invest their
moneys ia government securities
AT least congress and the then
administration thought 80, and
the precedent was set. Without discussing
the question ia so far as the funding bonds
of 1870 arc concerned, We say that now
there is no war; the country is at peace at
home and abroad; prosperity is upon us;
there is an abundance, surplus of money in
the lana seeking safe investment, and no
imperious necessity, such as existed from
1861 to 1865 forces the government TO make
concessions, rs unjust and as unhallowed rs
that Of exempting its bonds from taxston.
There is no need for class legislation now
There is no need TO wiring all tho taxes from
the poorer classes Of the country for
its support and maintenance while the rich
are exempted. The m erchant with his little
stock Of goods; the mechanic with his tools;
the day laborer whose sweat and strong
hands is his all of capital have TO pay taxes,
and when they can lily afford to do it, but
the millionaire. with his strong box full OF
bonds issued by the government for sootb,
the government that should treat all its
citizens alike, does not pay cent Of taxation
on these bonds but he is very punctusl in
drawing the interest. The bonds that hav,
already been issued AMI sold We
do not ask TO ba taxed, for
tina. would be violation o
contract and the government has no more
right to violate contract, cannot any more
afford to do so than al individual. When
the funding bill is passed by the next congress:
it will provide for the issuance of bonds TO be
sold upon the market, the money they bring
to be applied to taking up outstanding bonds
mstured, and If it be nominated in the
bonds" that they are taxable, why then such
nomination is simply part of tho contrac,
and he who buys them does so with tina,
understanding. But it is urged tina. a
taxable bond cannot be- losted
that they would not sell. Who knows this
to be true? If the capitalist puts his money
in real estate, or in railroads, or in merchan,
dis he knows he must pay taxes, and ye
we 500 them doing it every day. Then why
would he not put his money in governmen
bonds that arc taxable? He knows tina. sucl
an Investment is safe oae, and that hit
money is sure whenever 1t Is due. Roa
estate and railroad and other values are {,
huctuSting that taxes are lIctuating too, So,
some, and the uncertainty of what taxa
ton might be would prevent
capitalists investing in taxable bonds. Eth,
government has the right to say the bond
shall not DO taxed at all, it has the right (
fix the maximum rate of taxation, has it MOI.
Does not the ono right imply tho other? TheI
If this latter obj lection DO a valid one, answo
1t by fixing the rate of taxation. Ask 4
national banker or Wall street broker OF
any man who specula,cs or deals in none,
and stocks, and ha will roll up his eyes il
holy horror at the idea of taxing these fund
ing bonds, and with both hands ur
asseverate in tho most posit,y,
terms that they cannot b.
sold indeed no would swear to IL If no though
1t would do any good, and no doubt some o
tho national banks would attempt in,imida
ton of the government again by withdrawn,
their bonds on deposit and reliuquishin.
their currency. If SO, let them. Ii thi
government has not got stability enough o
It's own TO stand aud do we'll without .ht
national bankers and a few Wall stree
brokers, why the sooner 1t tumbles down tn
better. We have always had the Impression
. That thia vaa a vnvorn mani of ,h,