Bonds, Greenbacks, And Taxes

Evitan, of tüe AUgüs í In the declaratioii of principien or platfoim adopted by tüe XationalGreenback pai ty appears as one of its priucipal plauktt a ditumnd for the inimediate " repeal ot' the national banking law," tUe retirning ot thu national bank curreucy, and " the issue ot' all paper nioney by the general governiniiut." It is claimed that the National party is coinposed largely of farinere, - and I lint it espeeially fot their interest as taxpayers tliat legal tender money or treaaury QOtea Hupply the place ot' natioiml bauk notes, and that the banks be elosed by repealing the act of Congrctis under whiuh thoy are organizad Allow lite a brief spacejiu your paptrr to state a few t'ncts tur the cundid oobsideration ot' all who heliere that thoy or the country will be greatly relieved froiu taxtition by the complianco of Congress witli this imperious deuiand of the National-Greenbaek party. It must be remembered that previous to the passage by Cougreas of the natidiial bauk act, there was in circulatiou of United States treasury notes, known as greonbucks or legal tender eurrency, about 30ü,000,()0ü. The law authoriziug the issue of the first $100,000,000 made thetn i'undable into 20 G per cent. coin bonds, nou-taxable by State or municipal authority. The act further provided that coin received fordues to the government should be applied to the paymeut of 'wtei'ext. in tvtu on the notes, and to tliu purchase and payment of one per cent. of the batiré delit of tie Uuüed Ulule, to be mad each tiscal year after lMi'J. Romeiubt-r, also, that iu the very act authori.iug the issue of these yromise to ]";, provisión was made not ouly for funding thein, but for their gradual payment iu cae not fundad. Their issue, to be used as nioney, had no constitutional sanctiou, and all the distinguished advocates of the mensures in eitber brauch of Congress, who eugaged in the discussion of the act, dodeclared in most explicit language that ii was regarded as a teuipurary expedient, fraught with danger as a precedent, and justitied ooly by overwhbliuing uecessity. Secretary Chase, in bis annual report for 1H61, alluded to but did not recomuieud the adoption of the policy ot issuiug legal tender notes, and subsoquently gave his opinión ín thuir favor, but only upon conditions looking to a returu " to gold and silver as the only permanent basis, Standard, and nieasure of value recognized in the Coustitution." In the decisión of the United States Supreme Court will bc fouud this language : 11 II under the uircumstances ot the war and the meorirt rcquired to maiutain the army, and navy it were certam that uotiiiu;,' else would have áupplied the absoiute uucca.siti s ot' the treuaiuy ; that uothing else would haveenabled the goverumentto maiutuiu the aruiy uud uavy; liotbuqi wuuid navesaved the goverument auü the coustitutiou trom destructiou while the legal tt udtr act would # it oáliñvt be said that Uougres9 transcended its powera m the euautiug ot tlii law." In the case eutitled Bank vs Supervisors, 7 allace (this was upon the question of taxing legal tenders), the Supremo Court said : 11 It is clear that thfcfie notes are obligatious of the Uuited State. Their name iuiports oblüjation, mul everv one of thein beurs uu its tace a pruuiiae to pay a rarlimi huiii. The dollar nu. e ia a pruuiise tu puy a áuiliir, aud the dolInr iutended is the cuin dollar of the Uuited Otates: a cert-iiu woitíht anti riuenes ot gold ur silver. ■" These notes are obliguliuuu. They bind the uatioual t'aith. l'uey are, therefore, strictly secur.tiea." And in the legal tender decisión, 12 Wallace, 53, the tollowing language is used : "The legal teuder iftü do not attempt to raake puper a stuudatd of value. We do not lest ttioir valmity ou the assertiou tUat their emission is coinage, or any regulatiou ot the value of money. Kor dowe assert that (Jongre34iuny inaKe anythimj whtch ta no value rnonet." I rcter to the foregoiug recorded opinions of eminent statesmen and jurist upon the character and quality of the paper circulation which the NationalGreeuback party demands shall be the money of the nation, and that, too, to an unlimited amount, and also be substituted for the national bauk currency uow in circulatiou. The act of Congres, Alarch 3, 186.3, exempts all the bouds, treasury notes, and Uuited States notes (legal tenders), front State or muuicipal taxation. The national currenoy act, passed by Congress February 'o, 1803, is the adoption substantially of the provisions of the general banking law of the States of New York and Michigan, adapting thosi! provisious, by alterations and and changes, to apply to the general governmeut The purpose of the ajt was in part to próvido a curreucy for the whole couutry and in part to créate a market for the goverumeut loans. The law at iirst restiicted the nutuber of bauks and the mm uut of ciruulation that should be issued by thein. It has been amended, and banking uuder it is uow practically free to all. A national bank obtains circulating notes by depositiug bonds of the United Status (which are not taxable either in the bauk or iu the hands of the people) with the treasurer of the United States, as security, and reoeives 90 per cent. of the amount in notes ior circulation, ukich are taxuhle btj State aud municipal auttuirUy, are also a legal tender for all debts due to the bankt aud iu payment of all debts taxes, aud revenues (except duties ou importa) to the government ; are paid out by the goveruuient for all expeuses aud debts except principal and interest on tbe public dubt, and in tact are in all respeuts such a legal tender as is the coveted reeuback, except as to debts butween individuals. Thus, through the medium of the national bauks, the non-taxable bonds of the Uuited States to the amount of over 300,000,000 are taken froui the coffers of the "bloated bvndholder" and pledged as becurity for the redemptiou of $300,000000 of currency for the people, which is taxable whorever held for state, couuty, towu, municipal, aud school purposes, - possessiug at the same time all the attributes of the greeuback currency, except the single oue of not being a legal teuder for debts between man and man. The bonds, it will be remembered, while iu the hands of individuals or iu the bank are not taxable, but bank shuros issued to the stockholders, and representing the bonds are taxable iu the place where the bauk is located, by the same authority and for the same local purposes as other personal property. In soine localities the banks pay fourfifths of the personal tax. In New York City the bauks paid nearly onefourrth of th personal tax of the State, and about 40 per cent. of the personal tax of the city. Again the national banks pay taxea to the general govern ment on the amount of their capital not iu vusted in U. S. bonds, on their circulation, and on the average of their deposits ( " debts they owe " ). The total amount of taxes paid by the banks on the foregoing items in 1877 was $10,828,656.12. The taxes paid by the national bankt! to the goverument in 1871 aiuounted to over $10,000,000, and the State taxe about $8,000,000 : making a total of over f IS.000,000. In addition to the taxea paid to the general governinent by the national banks, the government receivea all the benefit froui the loss or destruction ot their circulating notos. Kveu the 15 to 25 per cent. ot their deposite required by law to be kept on hand without profit to the bauks, as a permanent reserve fund for the seourity of the biü-bolders and depositors, is subject to a tax. The national batiks are not a monopoly, neither is their stook largely held by the rioh uien ot' the country. It is widely distributed and aiuong peopleof moderate means. The only special privilege they possess is thnt ot issuing oiruulution, and that is in no aense a restrioted privilege, but is open to all who ee lit to engiige in thu husinuss ot' banking. In view of the foregoiug facts where do we fiud the grouud for the charge 90 loud and often made by men in public and private that the national banks are " a great monopoly, a swiudle and fraud on the community, aud should be wipud out." Will the repeal of the uational banking luw and the issue of $;iOO,ÜOO,OOO of a non-taxable aud irredeemable greenback curreucy ia place of $.'00,000,000 of taxable uational bank notes relieve the clamoring taxpayer '{ Is it for the interest of any ulass, riuh or poor, high or low, that the demand of the National-Greonbackers should be couiplied witli ': Do we taxpayers favor the loss of over $300,01)0,000 of personal property now taxable, and the conseqont necessary traster of the taxes now paid on the uatioual bank ciruulation to personal property or real estáte 'i I do not inteud thi.s communication as an argument in favor of the national bank system ag uow adjusted. Neither do I inteud to discus the important questiou of finance, or what should be the established currency of the country, the representativo of the true measure of value, ot by what authority issued, goverued, aud regulated. I leave those questioiis lor another occasion. It, - The last pie ie of iron ootlstructing the frame work of the dome of the new Capítol was raised and bottod in place ■ at noon, June I"). A small evergreen tree was fastened lo the top of the mast, aud the Stars aud Stripes were run up amidst oheering. Tht flttg waves at an altitude of '2()." feet. - Mr. Samuel Foster an oíd íesident of Springfield, Üaklimd county, feil dead in the street at Poutiac on the 12th fioiii beurt disease. He was a well to do farmer and leaves a wife and six grown-up-uhildien. - Competent eugineers say that the St. Joseph river at Niles has 12,000 horse power, and a company of Eastoru capitalista proposo to utilizo it on a grand scale for maunfacturing puiposes. - Ten persons hnve been arrested at Ransom, charged witii disturbing a camp meeting.