Year: 1868

SbattB IaXHIh0m OIL Gmlted states


Bonds.


To the Edftor OF me rress -
The arguments for subecting to national
taxation the national bonds are to be an
swered, not ridiculed, and the men, who urge
them, are not to be put out of the pale OF po-
litical fellowship. They stand as squarely
upon the Chicago platform, as the straitest
of us, and calling them thieues and repudia-
tors, don't make them SO, but does make us
scolds and calumniators. Let the case be
stated.


The United States in a time of dire ne
cessity asked loan. from its citizens. 1t
promised them in a solemn statute to pay
per cent. in coin, and that the loan should be
forever "exempt from taxation by or under
State or municipal authority" l have no
doubt they virtually promised that the loan
should be repaid in coin.


To all the great advantages of this contract
the creditors of the government are fairly en-
titled; for great as these advantages are, be-
-ng in fact loan bearing an interest equiva-
lent to about twelve per cent of the sum
loaned, and to be repaid in value from fifty,
to one hundred per cent. of the sum loaned
they are none too great for the actual risk as
sumed. The government was on the brink of
destruction; it was the belief of all disinteres-
ted financiers and thinkers that the South
would succeed, and such was the belief of
nearly half of our own citizens. Even now
with reputation the creed of one party,
with advoc ates in another, saved from po-
litical revolution that would bring this creed
into power only by the folly of the opposition.
the extra interest on United States bonds is
no more than just equivalent for the risk
that by some political juggle, the creditors
will b. defrauded of their just dues.
All that the government promised, regular
pal in coin, exemption from State and mu-
nicipat taxation, let it perform to the letter
to the last cent. But while the government
must not repudiate its liabilities to the peo-
pie, its creditors, the people, must not repudi-
ate their obligations to the government. One
of these obligations is the contribution OF
taxes to the support of the government.
| Because certain citizens loaned their mon
ey to the government it does not follow that
they can claim exemption from national tax
alton. They can claim just what the contract
says aud means, their interest and principal
in coin, and exemption from State and toaon
taxation. They may just as well ask to have
their letters carried free of postage, or their
goods imported free of duties, or their persons
exempt from military service as to have
themselves exempt from taxes simply because
they are government creditors. The govern
ment promises for certain ability, integrity
and services in office, 10 pay Brigadier Gen
eral, an Assistant Secretary, or a Collector
$4,000 per annum. 1t then expands the cur
rency and doubles all nominal values SO that
the $4,000 has not purchase power OF SloOo
and yet it compels the offce-holders to pay
an income tax OF 500. Is this reputation
of part of the promised salary? Not at all
because he took his Office with discretion
vested in the government to tax him or il il
accordance with any lust and uniform system
of taxation.


Ali business is done between individuals
and between citizens and the government
and all gains are made subject to the para
mount discretion. lodged by the consent
the whole in Congress to levy imports, taxes
and excise at its discretion.


Whether the government shall tax its owl
bond-holders is question of mere expedien
cy, embarrassed by no previous pledges ex
press or implied whatever. 1t may be wei
said, it is not good policy to tax them, be
cause government is heavily in debt, must
get along by borrowing the next century, an'
ought to conciliate and not affront men VINO
have money to lend.


1t is easy to say that if the government ma!
tax halt per cent. they may tax one hundred
per cent, and so repudiate the whole debt
That is good argument against an e1cessir
tax, none at all against reasonable and mod
crate tax. Nay, that is just as good an argu
ment against all taxes; for you may say if tn