Year: 1866

We hope Congress will not act without
thorough consideration on the proposition
to exempt United States bonds from all
taxation, local and general.


During the war we were obliged to bor-
row as we could, and it was well, perhaps,
to offer, amongst other inducements, this
one of relieving the holders of our bonds of
the burden of taxation. In the first place,
while the war was still undecided, no one
knew how heavy the taxes might become,
and those who had money to lend did not
know how much of their interest might be
swallowed up by taxes; therefore it was
wise, perhaps, to quiet their fears on this
head by eXempting their bonds altogether.
Again, this exemption, by appealing to the
same fear of high taxation, no doubt in
duced many persons to invest in United
States bonds who otherwise would not
have done so. . ,. g..


But during the war we were beggars;
our credit was low-ior nobody could tell
how the war would end, or how long it
would last; we needed great deal of mon
ey in very short time. aud We were in a
peculiar manner at the mercy of those who
had money to lend. We are now, or ought
to be, in much more advantageous situa-
ton. The war is ended; the army and ma





er has been so manifested that we need not
fear attack from any quarter. Our wealth
is so evident that even the British Chancel-
lor of the Exchequer says publicly he be-
lieves our great debt will be an easy burden
for us. d.. .s,. ... .....


Under these circumstances we need not
run around with special inducements, as
the pigs in the land of COckayne are said
to run around with knives and forks stuck
in their backs, crying Who'll eat me "
We cannot yet command the rate of inter-
est; but we need not attach eXtraneouS and
extraordinary privileges and exemptions
to our new bonds; Tor we can get money
without. ....f


The question whether the new bonds
should be exempt from all taxation is one,
therefore, to be considered in all its bear
ings. 1t is urged that ii they are exempt
ed they will bring better price. No
doubt but what is thus saved in one way,
will it not be lost in another? and will not
more be lost? For the exemption will not
realize its full value, but only considerably
less, to the Government, because its full
value cannot be accurately ascertained.
Would it not perhaps, be as advantageous
in the long run, too borrow fairly and
squarely, as cheaply as we can, without
such vague bonuses as this?


As the question is one of eXpediency and
not of necessity, will it not be well to
consider what may be the effect of exempt
ing the new. bonds? Will it not, perhaps,
be the means of creating prejudice in the
minds of many persons against the bond
holders as class, and against the debt,
which may be used by demagogues to the
disturbance of our credit hereafter? 1t will
certainly be more difficult to make work
ingman content to see his wealthier neigh
Dor exempt from taxation, while he has to
feel the burden of it, than it will be to bor-
row the money we need without giving
this bonus. Moreover, will it not be ar
gued that by thus eXempting bond-h0lders
from local taxes they will lose their interest
in local affairs, and become useless as citi-
zens? . t... ------- ........H .u
o We throw out these suggestions for the
consideration of Congress, becausewe think
the subject has important bearings beyond
the mere influence of such an exemption
upon the price of the bonds.uica w