Year: 1867

| DelDS exempt from taAdllOu, oSSViu'"S ~
these gentlemen, there would seem to be very
little hope for the country. The various
branches of industry are represented as being
in the "throes of DEATH" and the people
lying down "paralyzed, helpless, enshrouded
as in the robes of death" And all this is
caused by the exemption of the national
bonds from taxation. They stigmatize the
holders of these bonds as creatures destitute
of the love of country. and declare that they
hove already trebled their investments. Ii
is with such misrepresentation, and with
such adjectiyes as astounding" ''nefari-
Gus, !" " outrageous, :" " tremendous" "over-
whelming," that they expect to be able to
lift themselves out of political obscurity.


Now, intelligent men who mean to deal
honestly, and who are in favor of the Nations
discbarging its honest obligations, will, when
this measure of taxing the national bonds is
proposed as a matter of public policy, De
likely to look into what may be the practical
operation Of it. If the exemption of these
bonds works an inequality, such as ought to
| be remedied and can be remedied, they will
go for having it done. But in doing this
they will prefer to think for themselves ra-
| ther than have class of men think for them,
or act for them, who would not invest dol
| lar in those bonds when the Nation was
struggling for existence, and who are now,
at heart, in favor of repudiating them out



right. or of furnishing the men who lent their
money to the Government, by rendering g
their investment of as little value as possible.


That all the property CT the country should
bear its equal share of taxation is PROPOSE
tion to which all agree. But exemptions are
frequently made of certain kinds, for an
indefinite period or for term of years,
through motives of public policy, or through
necessity. Our Legislatures frequently e1-
empt railroad or manufacturing property
from taxation. and this for the reason that
the State is to be ultimately benefited by the
exemption. In ezempting these bonds from
taxation Congress acted from necessity for
had the rebels succeeded in conquering the



property point of view, that would have
succeeded. JEFF. Davis would have had it in
his power TO conGscate the whole property Of
the North, and the least sum for which we
could have got of, would have been the cost
of the war on the rebel side, together with
payment for the amount Of slave property
Which they would have claimed had been
lost But for the money that the Nation
procured by issuing these bonds, the loyal
cause would have been lost, and state ot
things would have ensued fearful to contem-
plate. Are these men. who thus lent their
money, to be stigmatized by unprincipled
demagogues as creatures" and men desti-
tute of loyalty? And let it be borne in mind
that the onerous taxation which now rests
upon the country, and the burdens which
! clog industry, have not been caused by bond
holders, but by great political party, which
failing to carry a Presidential election, made
war upon the Government, and for four
years waged that war unremittingly, filling
the land with sorrow and woe and desolation,
and entailing upon US the vast debt wessnow
owe.


But suppose all should admit, since the
war is over, that it is right to tax these
bonds; the inquiry arises, in what way can
it be done, either by Congress or the States
without violating the principles of the Con
stitution, or impairing the national honor and
credit. Congress, in authorizing the issuing
of these bonds, enacted that they should be
exempt from State or municipal taxation
This act became part of the contract and
cannot be repealed Any attempt to avoid
this contract would be set aside. The Su-
preme Court of the United States, in the case
of Churchill ct al. vs.. the City of Utica, when
the question was whether States or Munich
palities could tax National Bank shares,
said


"The State tax under this act of Congress
| involves no question as to the pledged faith Of
| tie Government the tax is the condition for
the ne,c rights and privileges conferred upon
these associations"


The above amounts to declaration that
any attempt on the part of States to tax those
bonds, as such, would be overruled by the
United States Supreme Court, as violating
the pledged faith of the Government.


But if the pledged faith of the Government
cannot be violated by the States, can it be
done by Congress? 1t is true that Congress
has not in words declared that these bonds
shall be exempt from taxation by the Federal
Government. But is that not implied P
Would Congress lead the national creditors
into a snare by exemptins these bonds from
taxation by States, and at the same time
harbor the secret intention of getting the
money of national creditors into its hands,
and then turning about and taxing it? We
do not believe it would be guilty of any such
trickery. But suppose it should attempt it,
how would the case stand? The money
which the Government has obtained is bor-
rowed money. The Government stands in
the precise relation of borrower to the lender.
Can borrower discharge his obligations by
returning part? Every dollar of the prin
cipal and every dollar of the interest must be
repaid. Would it be repaying the principal
and interest By returning tie amount minus