The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1892-02-14
WHY BouNTIEs ARE uNDEMooRA1Ic.

The Republican newspapers of this ter
rstory, with characteristic disregard of
correct economical and constitutional prin-
ciples, are criticising the action of the
legislature ir denying bounty to manu-
lecturers Of sugar. This action was not
taken unad visedly. The power to grant
bounties and the advisability of granting
them by legislative bodies are two Of the
issues distinguishing the two chief po-
htical parties of this nation Nor, in the
opinion Of Democrats, are the questions in
vowed of slight Importance, being N fact
the questions of the preservation of the
rights of the people and of the commercial
prosperity of the nation. Republicans be-
heve that bounties are both wise and law.
full; Democrats believe that they are
neither.
democratic views as to the mistaken
policy of granting bounties from an eco
nomic standpoint are very well stated in a
brief article in an encyclopedia which is at
hand. We quote as follows:
Bounty, term applied to any sum granted
by The legislature tow ards creating or en-
courdging some kind of undertaking believed
TO be OF national importance. at one time
there was no END to tie giving OF bounties in
this way from the public purse There were
bounties on exporting corn with a view to en-
couraging agriculture; there were bounties on
the tonnage OF vessels employed in the herring
and whale fisheries, on the importation of mat
erials of manufactures, on the importation of
indigo from the colonies on the expectation of
irish linen, etc. The failacy of thi S
| costly and Fictitious process for fos-
tering commerce manufactures and ag-
riculture was amply demonstrated by
ADAM SMITH in his Wealth of Nations;" one
of his more striking facts being, that every
barrel OF herrings which sold for 2Os, cost the
government about 25s. The notion that boun-
ties may properly be given as an encourage
ment in the infancy OF undertakings has been
| happily exploded. 1t is ascertaired that be-
sides taxing the general community in order to
reward or encouraSe individuals. bounties dc
10 real good to the parties so favored; for by
such Inducements they engage in business fol
which they have no special vocation, or which,
in existing circumstances, it would be prefer
able to let alone. Misdirection of capital
talent, and industry are, in short the newt
able result of bountles, and, it is claimed. of al
measures for the special protection OF trade
! The subsidies in the form of extra rates paid tC
certain steamboat companies for carrying the
mails may be said to be the last remnant Of
British bounties.
Democratic objections to bounties from 6
constitutional point of view are stated in
an opinion of the Supreme Court Of the
United States in the case of Loan Associa-
ton against Topeka, found in the TWEEN
tieth volume of VILLAGES reports The
single question before the court was the
authority Of the legislature Of Kansas tc
authorize the city of Topeka to aid an iron
works company of that city from the pub
lie funds. The opinion was to the effec,
that the authority could not constitution.
ally be exercised. Justice MILLER, him.
self Republican, delivered the opinion OF
the court. in which the following strong
and ambiguous language was used:
To lay with one hand the power of the gov
eminent on the property Of the citizens and
with the other to bestow il upon favored indi-
Viduals to aid private enterprises and build ur
private fortunes, is none the less of q robbery
because 1t is done under the forms Of law and lis
allied taxation. This is not legislation tits
a decree under legislative forms. Nor Is it tax
alton. A tax" says Webster's Dictionary
is rate Of sum Of money assessed on the
person or property OF a citizen by the govern
| taxes
are charged or burdens imposed by the legisla
ture upon persons or property to raise money
for public purposes. We have estab.
lished, we think, beyond cavil that there can be
no lawful tax which is not laid for public pur-
pose.
If 1t be said that benefit results to a local
public of town by establishing manufactures;
the same may be said OF any other business OF
pursuit which employs capital or labor The
merchant the mechanic, the inn-keeper, the
banker, the builder. the steamboat owner are
equally promoters OF the public good, and
equally deserving the aid of the citizens by
forced contributions. No line can be drawn il
favor of the manufacturer which would moi
open the Golfers OF the public treasury to the
opportunities OF two thirds Of the business mel
Of the city or town.
To the same effect is the opinion Of
Judge COOLEY, found in his work on con-
stitutional law, as follows: "Where, how
, ever, tax is avowedly laid for private
purpose, it is illegal and void. The follow.
ing are Illustrations OF taxes for private
purposes: A tax levied to aid private par
ties or corporations to establish themseIve:
in business as manufacturers;
and so on. In any Of these cases the public
+ may be Incidentally benefited, but the in
cidental benefit is only such as the public
might receive from the industry and enter
prise of individuals In their own affairs
and will not support exactions under the
name of taxation :"
1t will, therefore, be seen that Demo
cratic objections to bounties are funda-
mental and weighty. The issue on this
subject is and has always been well defined
between the two parties. The Democratic
members of the legislature and the Demo
> cratic party are prepared to meet their op
ponents upon this as upon all otne issues
THE BEST THAT Is POSSIBLE