Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1924-01-02
INDEPENDENT NAN TODAY THE FARMER WHO LIVES HOME

or capital levy iy the state or
the counties and cities. they will
find themselves under the same
compulsion that exists today on
the part of. business corporations,
and in order to raise any money
the states, counties and cities will
have to promise to pay SIX, seven
and eight per cent interest Ike
any and all business corporations,
and in addition VIII face the III
dicuIous proposition o. being
compelled to pay to their bond
holders any federal income. or
capital taxes that may be impos-
ed.
The federal government will
be looked on wish suspicion. The
proposition is already being urg-
ed to find some way to reach
the income tax Exemption The
proposition is enc that involves
gross fraud on the part of the
government, and anyone who ad-
vocates it is deliberately pro-
posing that our government shall
violate every principle Of good
faith and defraud, if possible, the
holders of these tax exempt bonds
New government issues will 90
unsold because each proposed is
sue will have to carry some espe-
cial provisions to protect against
future administrations or future
attempts to violate the terms Of
the issues then offered For ii
the government can successfully
rob the holders Of existing tax
exempt bonds, why should any
future purchaser Of government
3onds expect to have the governs
ment observe its promises or
guarantees in the issues then
offered?
CAS- has been shown Cepeat-
eddy, once you grant the right to
tax at all, that right exists on the
part Of the government to the
extent Of taxing everything there
is of the subject taxed, and once
you grant the government the
right to tex either government.
state or municipal bonds. you give
The government the right no5
only 80 tax all the income from
those bonds but to confiscate all
the principal sum as well.
''When this is understood as it
will be by any person who has
money enough to invest in agov-
eminent bond he viii refuse to
deal with his government. Gov
eminent Improvements cur Of
bond issues, like canal projects,
public buildings, and everything
OF that kind, will cease. Current
taxes will mount enormously be-
cause the present absolute neces-
sites will have to be provided for
out Of current taxes.
At present when all other bust
ness languishes and construction
ceases, cities and states have
been able to raise money by sell
ing taX-eXempt securities, and by
carrying on public works Of some
kind with the proceeds give some
relief to idle labor, but if they
ever give up the privilege of hav-
ing, their bonds exempted from
federal taxation this avenue for
relief will be gone and closed for
ever, ana in periods Of depres.
SION it will be impossible to carry
on any public works for relief,
and distress will be greater than
ever before.
Il cannot understand the dis
tres2ing bad faith of these who
are seeking to defraud the pres
ent holders of tax exempt So
curities or the utter folly Of
those who would prevent the fur
Their issuance Of such bonds by tn
governments, the states or the
cities"
This question of tax exemp
securities is very important On,
"a question that will elicit wide d,
cusslon IN the next few months. In
acatlons are thar it will come he
10 lore the present Congress and III
llmes-Recorder publishes the lett,
.of Mr' Walker that its readers mn
nays haye tnN Benefit Of arguments o