The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1886-04-21
STATE BONDS.
A Letter nom Governor Foraker
Showing that They Are
Taxable. ...
Constitutional Debates Quoted from to
show the Intention Of Its Provisions
AN Exhaustive Reply to Criti-
cisms Of His Recent Message
on Taxation.
CoLuMnus, O., April 10, 1888.

OsA AoAothOhs
COLUMBUS, O., April 10, 1888.
To the Editor of the ohio State Journal:
Up the time of sending my special mes
sage to the Legislature It had never seemed
to me possible that any intelligent man IA
miliar with the requirements of the Consti-
tuition could honestly believe that the bonds
Of the State were non.taxable. Since then
have been compelled to change my mind and
believe that Mr.. Noble and Mr.. Parsons do
honestly entertain that opinion. 1nasmuch
as they do they must be exonerated from all
intentional wrong doing In Withholding their
bonds from the assessors and from the ap-
plication of any criticisms my message may
contain that would otherwise apply to them.
oa hs state ss ePss of
ss Mr.: Noble aud Mr. Parsons did, that their
But all this does not settle the question
whether or not those bonds are taxable.
That remains to be determined, and II a the
is hoped al! back taxes that have not been
collected, because Of this mistaken belief.
Miil be promptly paid pal by the gentlemen, who
tionally wronged the State. E.
As to- the question whether or not the
conceded by ali that Il was compoteut for
the Const tuition to provide that they should
be taxed although prior to its adoption they
sake OF argument, that the bonds issued prior
to 1850 were not taxable hut expressly ex-
their issue, the only question remaining is as
TO whether or not the provision of section 2,
art Gle II Of our Constitution, which
taxed" applies to them aud makes them sub.
that such is the effect Of the Language EN-.
plOyed. As to what the convention meant to
SAY on the subject, light can be gathered
from the debates that occurred in the con-
vent ,yeItion; II any one viii take the trouble to
stitutional Convention Of lsTj5l he will fnd
that from about page 90 to page LIS Of this
IL also an sss sSs
tority Of the convention, following the lead
ership Of Judge Renney and Mr.. Groesbeck
ablest men of the convention, voted on sew
eral occasions that the constitutional provis.
ion to Be adopted should provide for The tax
be made absolutely explicit. inserted in
All Son ss gsste
snow q Hereafter TO Se Issued" ~ It wa! was
urged in objection to the adoption of this
the TAXATION Of such Of the bonds a and H certia.
Gates MS had been issued under statutes ex.
pressiy exempting them from taxation, and
that there would be a consequent violation
of the plighted fa tn of the State; but not.
withstanding this objection the convention
Ss n c be 5ex Wboe
When this section was reported to the con-
yention. i remained the subject of conten.
as the record will show. until just be.
tore the convention adjourned on the
present section above referred to of the Con.
stitution was agreed upon and adopted 1t
VII oe. be observed ,I that the language now or
ated in the Committee of the Whole and sew
eral times sustained by the votes Of the con-
will take the trouble to look at page So of the
second volume Of these debates he will see
that Just before tho vote was taken upon the
sd0ption io OF this section, Mr.. Lawrence spoke
Mr.. PREs1DENT-I have one word to say
HefGTe n this report P.sse: beyond our acton
are now inserie ed In place Of the terms used
sancton q Of this
nader Hs / understand. and as have no 10
this convention. the change in phraseoIogy
was made to obviate the techntcdt objections
Of certain members without Wishing or "a.
nal report. / voted at the time against the
change. believing, as I did, that much OF
would be the result. now ONLY wish to say,
M. President. that wish . clear and un.
equivocal construction OF these terms to go
place and in the presence Of the members Of
this body, declare as the Judgment Of this
Conventlon. as previously determined. that
man United States bonds "a and STATE stocks. 1 -
caass s s Ss va; @
and, asstated by him. was intended to be
the construction of the convention. and it
the convention In view Of this record.
whatever may be claimed as to what was
the effect & and intention Of the Constitn-
clearly Intended that ali bonds thereafter
reader Of this record viii discover T some me
other important facts bearing upon this
question:. He will ipd that It was stated
others equally able % and distinsuIsSed, sssS and and
equally careful to make only accurate state:
mcnt:, that sn e1a%instion m. Of The several
ence had been issued, disclosed the fact that
only two statutes authorizing such bonds
nS SsS Ss nss sso ~ fen sn &
found q statement dated February Is. lsib. BY
1t appears that the bonds maturiag in l8A
,J we're g. al u, @ 0f them issued during the yesrs
All the other bonds that were issued in 1859
were issued as per cents redeemablc In 1880.
and thc.bOnds issued redeemable Ia 1850 were
tSe SSy ones iss1ed ssat u OF the act
the bonds that matured in 1855 were none of
them, bv the express terms of the statutes
under which they were issued, ever at any
time exempted from taxation.
1t Ia also however, stated In the debates, and
NO Doubt accurately. although not conceded
by Judge Rannev and those who agreed with
hina. that all these bonds, without regard to
whether they were expressly exempted from
taxation or NOT were put upon the market
and sold ~ exempt from taxation. 1t will
be further observed that almost without q
single except on the convention was OF the
opaiOa that whatsoever might be done as to
taxing bonds already In existence, the true
policy was to tax all bonds thereafter to be
dehates that these bonds. excepting the
issue Of 1seS, had been sold at q premium
ranging adj the way froa eight per cent.
to twenty-fOur per cent, and 10 was urged by
those opposed to the TAXATION OF those ai-
ready so issued that this high prcmium in.
dcated that the state bed already been
compensated for Its exemption OF the bonds
from taxation. This 10 Significant In view OF
the statemeot Of Mr. Noble IN one OF bis
brought Q premium of 8h per cent. He
argues from the fact that they brought such
Q premiuua that II vas understood
they we're nOn.taxable. Whom u 10 re-
membersd that there was never be.
fore the var an easier money mar
ket than We had In 1855, and that
our cred at that time weS much higher
these h!gn premiums Of from eiEht TO twent y,
seem that 70 have In the low premium Ol
three and hak per cent 1t leasf very valus
ble u noe ooeiclusive evIdeaoe that the
capitalist who took the bonds understood
and appreciated the fact that now ConstItu
tlon had oeen a10Pted under Walsh - wai