Year: 1865




To the House Of Representatives. nor in Session:


The undersigned being the minority the Committee Of Ways
and Means whom referred House bill No 8 in relation
taxing the 0e Of United States bonds stocks and other
securities ask very briefly to state their views


The majority ofthe Committee have presented Report that IS
ably prepared and very carefully considered and for the most
part adopt line Of argument the general subject of taxing
those bonds and other securities to which yield assent
1t the conclusion at which the majority Of the Committee have
arrived the statement Of that conclusion from which we DIS
sent Tine only provision the bill to which any Importance IS
attached in the concluding which provides that the IN
NJ such b2HdS StocL and ot securities sqH h tqra-
bic, and shaH be SET IL the WaHd hSk


This presents two Considerations One to the oundness
Of the proposition that is whether the of such bOadS and
other secuS subject being taxed and set in the grand
list and the other such liable to be taxed and set
in the grand s 10 the existing laws Of the State in relation to
the Of making up the grand list make all necessary pro
visions for that object If then the passage CT the proposed
bill might be regarded unnecessary but not necessarily therefore
unconstitutional


What is meant by the term ac1ne2 The sense which It
would be and understood By the intelligent masses in commit
nifty apprehend the Interest s what is paid
Tor the use OF gwen sum OF money for given time and there
fore the Of that sum Of money for that given time. The
arising from these bonds that which secured by the
coupons attached to them and paid upon them annually or semi
annually by the Government for the Of the money expressed
the bonds and makes difference by what name Is called
whether term the interest of these bonds, the income OF
OF
these bonds issued expressly exemps the bonds from taxa
ton by the State wst does exempt the interest the


from taxation If the money with which these bonds were
purchased had been loaned private person and note TAKEN
that note by the laws Of the State subject being set III the


list and taxed together with all the accumulation Of interest upon
IT. whether paid unpaid The law Of Congress enacts ha


all stocks bonds and other securities the United States held
by individuals corporations associations shall be exempt from
taxation by under State authority The bonds III ohel
words the money expressed these bonds exempt from tax
alton, but to hold that the interest the arising from
these bonds by the law of Congress- entitled any mmun


ties from taxation any than the interest income arising
from any other species of property to be unwaaned
Neither the wisdom the folly the law of Congress calls for
praise is enough that find it the par
amount law of the land but it be disguised that Is
law fraught with inequality in popooning and distributing
the burdens OF supporting the Government as not to ente 1t C
such liberal construction will give force and construction
beyond It's clear and well defined provisions The undersigned
would willingly yield any others in their devotion to exist
ng laws and would willingly knowingly participate in any
measures that would be either nacton of those laws, vo
aton of the good faith that implied in the observance Of them


The majority of the Committee their Report say that tht
income of bonds the interest becoming periodically due part
Of the original contract and is identical with it that the
taxing of evidently much of interference with the op
eraons of government the taxing of the other matter
whether such interference be direct or iadject This
gard is what the Oglcians would denomnate SeqUtt,
that is the premises do not the concltsoaOr wha
lawyers sometimes denomnate petio pincpt, begging
the question: assuming that to exist which has not beeT
proved.


The interest when paid when due part Of the con
tract The obligation which compes the sgner OF the note
bond pay the interest," part of the contract and withou
such contract expressed implicit obligation to pay IN
erest exists aud the payment of the interest part perform
of the contract When contract has been fulfilled by tn
payment of the principal and interest," then the ende
and no longer exists and would be unconstitutional to tax tn


interest the income of these bonds because the bonds them
selves could not be taxed think might be said with MOI
consistency that the money expressed and denomnated in hes
bonds after the bonds themselves shall have been paid sui


ect be taxed and the grand list but has thereby foeye
after obtained an immunity from taxation Suppose the Legs


ue should pass law providing in anticipation Of the event. whe
these bonds shall be pathat the money when paid and
ceyed should be taxable and set in the grand list like tbs
of other money hand would be claimed that the law wou
be unconstitutional 1t might be said that would be unneco
say for the that would be subject taxation by ii
existing laws And how the to be distinguished from Ii
oher except that the money while the bond exem
from taxation while the bond unpaid whereas the none
II that paid interest mcne exempted by an
) existing law, for it never had existence till it paid
1t is not apparent to the undersigned how the taxing the ncon
of the bonds will affect the negotiation of the bonds BY having


bonds themselves exempted from taxation the purchaser gets
, he contracted for In this there redti0nf that is
proper be used in this conneconthe made vii
$ the Government respected and carried the letter.
If it is claimed that the State has the power tax this il
oOme in different way beyond what it other none
that in the opinion of the undersigned would he mesty
n Just, and unconstitutional


The bill under consideration does not propose to tax this
come differently from other money it simply provides that
il shall be tardJ, that is liable to be taxed "om shall
* SET ia the grand list Without rule provision of ID
to that effect the listers would have right this spec
of property by any different rule than that by which other
be is taxed.


The rule that is laid down the in the State of WiscO
MS sin sundoubtedy the true rule a The radiation must be N
at form and in a cases alike or equal operating alike upon all
Itaxa Tho And
nd proposed money derived from this source for the pu
n of taxaton differently from money derived from other source