Year: 1865

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From the Ohio State Journal.


Taxaffon-United States LOans-Partizan


Humbug.


EDITOR JOURNAL:-TheO opposition organs are
always hammering on the exemption from tax
alton enjoyed, as they assert, by persons who
have lent money to the Government TO carry
on the war. When this cry began, people re-
garded the whole thing as a joke or piece of
badinage or banter that might round off para
graph or a lame sentence; but could not pOssi-
bly, be regarded as a serious argument. But
the party organs reiterate, they keep up the cry;
they harp on the exemption with every latitude
of false and malicious assertion. These men
evidently think that this is an efficient instru-
ment of partizan warfare. Their pertinacity
shows that they regard the concern as a war
club, with which they can do extensive damage
not only to the Administration, but to the great
and patriotic party who supported the cause of
their country in the dark days of carnage and of
blood Whenever a patriot sees weapon Of
the kind in the hands Ofthese cunning and un-
scrupulous men, his first impulse ought to be
TO rush forward and rescue it from their grasp.
Baron Munchausen, or some body else equally
truthful tells US of a fellow'whO was forever
raising himself in. the air by Juggling at the
waistband of his own breeches. We ourselves
have seen little boys making the same attempt
by standing fiatfooted on plank, and seizibg
one end with their hands and tugging away
with might and main. A national government
taxing its own loans Except in the modified
manner hereafter explained), or suffering them
TO be taxed by an inferior Jurisdiction would
be Just as wisely employed. The functions of
the tax collector and the borrower are as incom-
patible as the qualities of fireand water. They
never can be successfully combined in the same
operation; and they never will be- The govern
ment in its sovereign capacity as a legislator,
can lay taxes, can command all citizens to pay
according to their ability. Aud if it is guilty
of any Intentional partiality or favoritism, in
the exercise Ofths sovereign power, let the thing
be pointed out; tell US where, when, how. No
man will be readier to condemn than the sub
scriber and his political friends. But in mod
ern times no great national war can be Carried
on by means of all the taxes that can he wrung
from willing or unwilling people. Loans are
as much a necessity as arms, or ammunition, or
lcOmmissary stores. But when the Government
proposes to become borrower, IL must deceDd
from its seat Of sovereign authority, and treat
with the lender on equal terms, as man with
man. forced loan would be robbery; and
robbery never vet was successful in supplying
a national treasury. few minutes may be
well spent in considering the modes which the
National Government may adopt in negOtiat-
ing with the citizen TOR lOan.st


In order to be frank and avoid all uncertain
ty, it may tell the lender that he shall, every
year, be taxed two or three per cent on the
amount Of his loan The lender Instantly de-
mands two or three per cent additional annual
interest; so that this piece of taxation would be
merely nugatory. But the tax might be de-
manded when the interest would not be forth
coming. IL would be poor encouragement to
the lender to warn him that, If he now volun-
tairly parts with a sum of money, he shall eV
cry wear afterwards for a long series of years,
be compelled by the taxgstherer to part with
another sum, however iDcOnyeuient to him the
raising Of the original or secondary sums might
be. Probably under this system the national
treasury would be very poorly filed, and the
national wants almost entirely unrelieved. The
reader will be apt to add, that an administration
which would act so, must be conducted by idi-
OTIS.


A second mode might be adopted: the gov
ernment might make propositions for loans and
say nothing at all about taxation but leave the
lender 20 the full operation of all laws for State,
County and local taxation In this case, every
man and ever woman, who has sagacity and in
dustry enough to secure and lay by fifty or one
hundred dollars, would foresee and calculate
the very highest rate of State and local taxation
to be expected, and demand an increase of in
u
taxation in such places is generally little low
er than in large cities and towns. In this town
ship, during the last years of the war, taxation
has ranged from two to two and half per cent.
of the total valuation on the tax-duplicate-
Last year it was fully two and half per cent.
It is said in the city of Cincinnati, two per cent.
on the total valuation, has become a common
rate of taxation. Our local municipalities, such
as counties, cities, townships, incorporated vii
lages school dictricts, DC, are generally Hml-
ted by the State laws as to the rate of local tax
ation But extra occasions can, in most cases,
be alleged for any increase of the rate. And In
towns and townships hostile to the National
Administration, these occasions would almost
infallibly be sought and discovered; SO that
national creditor might regard himself as fortu-
nate. if allowed to escape with three per cent
of taxation on his advances to the Government.
And fear and apprehension would aggrayate the
matter little; SO that under such n system the
nation must give nine or ten per cent. upon its
loans or get none in Ohio. Such a system
would only be a most wasteful, clumsy and vex-
atious mode Of compelling the General Govern
ment to collect large sums for the State, county
and local treasures Tax collectors, like other
men, do not work for nothing The operation,
therefore, would be costly. Otherwise it would
he an operation, just as profitable and Just as
effectual, as ths shifting of mans money from
his right hand TO his left hand pocket. But II
would subject the operations of the National
Government to the caprice, not only OF the
States but ofall the little, local, municipal cor
pOrations in the States. In Ohio, while our
present Constitution lasts, the natiouai deot
could not be taxed at higher rate than other
property, as all property must be taxed py "A
uniform rule" This IL a provision first intro