Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1924-01-02
Tax Exempt Securities

Much has been written and sala
about tax exempt securities. TIE
Times-Recorder has expressed the
opinion that a great deal of money
is invested in these non-taXable Sc
curities that should be available for
industrial expansion.
1t also has expressed the op'n
ion that ALL incomes should be tax
able; that great fortunes are being
invested in tax exempt securities
in order to dodge Federal and State
taxation.
The Manufacturers Record does
not agree with this opinion and
says
"Hvery argument. which WE
have seen in favor of the pro-
posed amendment to the Consti-
tuition to forbid the issuing o.
tax exempt securities by state
and municipalities has been fun
damontally unsound, The argu-
ments are plausible on their
face but they will not bear close
inspection
The Manufacturers Record then
quotes at some length letter from
Guy M. Walker. New York pub
licist, which vigorously defends the
right of states, counties and NUM-
cipalities to isaCe CIV exempt Sc
curities. Says Mr.. Walker.
GAS you know Congressman
MeFadden has been attempting
to get measure through Con-
gress providing for the abolition
of the tax exempt character of
government, state and municipal
bonds
This movement to destroy tax
exemption for government and
other public securities is another
one Of those shortsighted. ill-con-
sidered propositions advocated by
those who have no idea why tax
exemption prevails or how or
Whist will result if tax exemption
is no longer granted.
In the past, governments so
constantly robbed or defrauded
their subjects and citizens that
no one would trust his govern
ment in matter of business. The
old theory that the king may do
no wrong has actually been trans
lated into our republican govern
ment to the extent that in law
the government can do no wrong
and you cannot sue the govern
ment nor get paid no matter how
justly your claim is until a Con
gress sufficiently beyond the
reach of demagoguery will vote
an appropriation to pay your
claim. In the past when citizens
loaned their moneys to their kings
or their governments, the govern
ments did not hesitate, first, to
tax the income return until that
was gone, and then to impose
capital taxes until the principal
Itself was eaten up, and if citi-
zen or subject protested he was
denounced as a.traitor and treat
ed as such, but in those countries
where the English language is
spoken and where Anglo-Saxon
ideals of personal rights prevail
it no longer became possible for
king or government to con-
fiscate a citizens property on TO
hang him as traitor if he OBJ
jected, and because successive
kings, and successive adm;nistra-
tons in republics. refused 10 be
bound by any actions Of their
predecessors it became necessary
to incorporate in our constitu-
lions the provisions which protect
a citizen now when lending mon
ey to his government from the
bad faith or fraud eff succeeding
administrations.
II our states should ever give
up the right of protecting the
bonds issued by them and their
- unties. cities, or other mimi
al corporations, from any fed
tax or imposition, either as
income on principal, they
once find that the federal
Rment will proceed to i'm
them such Burdens that
ptterly impossible from
~ any state, coun-
-. aN any bonds for
oVement. Sewers
o%(built and epid-
ut, water supply
Will lag and
N will be lost,
be built. no
Citations or
ieral i'm
hold