The Massachusetts spy. [volume] (Worcester [Mass.]) 1831-1858, 1832-07-25

IN
sniting the government, and contrary TO It's
will, The principle laid down by the Supreme
Court comedies, that Congress cannot estao-
fish Bank for purposes of private speculation
and gain. but only a means OF executing the
Jslaga,ed mowers of the general government.
Rv The same principle, a branch bank cannot
conslitutionally be established for othGr than
public purposes The power which ihis acl
gives TO establish two branches IN any 0'a'e
without the injunction or request OF govern
ment. and for other than public purposes, is
not necessary" to the due ezee1t'oH VI '"e
powers delegated TO Congress
The bonus which is cxacted from the BANK
ia a confession upon the face of the act that the
powers granted by it are greater than are " ne
cessaru"to lis character of FISCAL agent. Inc
Government does not tax lis omcers ana agents
for he nr;vilege of serving it. The bonus OF
a million and half, required by the original
charter. and that Of three millions proposed by
this act, are not exacted Tor the privilege OF
SWING sthe necessary facilities for transfer
Tinp the public funds from place to place with,
in the United States, or the territories thereof,
and for distributing the same in payment OF
the public creditors, without charging commls-
sion or claiming allowance on account Of the dill.
ference of exchange" as required by the act OF
INCORPORATION, but for something more beneficial
TO the Stockholders. The original act declares,
that it 1.-THE bonus) is granted in considera-
lion of the exclusive privileges and benefits con-
ferred by tbs act upon the said Bank, and the
not before me declares ii to be in " consideration
of the exclusive benefits and privileges continued
by this act to the said corporation for fifteen
wears as aforesaid" 1t is, therefore, for " exclu
siye privileges and benefits" conferred for their
own use and emolument, and not for the advan-
fare of the government, that bonus is exacted.
These surplus powers, for which the Bank is
required TO pay. cannot surely be NecssSary,"
TO make it the fiscal agent of the Treasury II
they were, the exaction of bonus for them
would not be "proper."
1t is maintained By some that the Bank is a
means of executing the constitutional power
"to coin money, and regulate the value there,
of Congress has established mint to coin
money, and passed laws to regulate the value
thereof The money so coined, with its value
SO regulated, and such foreign coins as Con,
gress may adopt, are the only currency known
to the constitution. But if they have other
power to regulate the currency, it was confer
red to be exercised by themselves and not to be
transferred to corporation. If the Bank be
established for that purpose, with charter I'M
alterable, without its consent, Congress have
parted with their powers for a term of years
during which the Constitution is a dead letter
1t is neither necessary nor proper TO transfer its
Legislative powers TO such Bank, and there
fore unconstitutional.
By its silence, considered in connection with
the decision of the Supreme Court in the case
of McCuoch against the State of Maryland
this act takes from the States the power 10 tax
portion of the banking business carried on
within their limits in subverson of one of the
strongest barriers which secured them against
federal entertainments. Banking, like farming.
manufacturing, or any other occupation or pro.
iesson, is business, the right to follow which
is not originally derived from the laws Every
citizen, and every company of citizens in all of
our States, possessed the right until the State
Legislatures deemed it good policy to prohibit
private banking BY law. 1.-THE prohibitory State
laws were now repealed, every citizen would
again possess the right. The State Banks are
qualified restoration Of the right which has been
taken away by the laws against banking, guard
ed by such provisions and Limitations as in the
opinion OF the State legislatures the public
interest requires. These Corporations unless
there be an exemption in their charter, are.
like private bankers and banking companies
subject to State taxation. The manner in
which these taxes shall be laid depends wholly
on legislative discretion. IL NAV be upon the
Bank, upon the stock, upon the profits. or in
any other mode which the sovereign mower
shall will.
Upon the formation of the Constitution. the
States guarded their taxing power with 2ecu.
liar Jealousy. They surrendered it only as il
regards imports and exports. In relation to
every other object within their jurisdiction.
whether persons, property, business. or profess
sions, 1t was secured In as ample manner as
II was before possessed. All persons, though
United States officers, are liable to a poll tax
by the States within which they reside: the
lands OF the United States are liable to the usr
al land tax, except IN the new States from whom
agreements that thoy will not tax unsoId Ia nds
are exacted when they are admitted into The
Union; horses, wagons, any beasts or vehicles
tools or property, belonging to private citizens
though employed in the service of the limited
States, are ,ubject to State taxation, Fverv
private business, whether carried on by an off.
Ger oi the general government or not, whether
It be mixed with public concerns or NOT even
II IT be carried on by the government of the
United States itself, separately or in mariner
ship, falls within the scope of the taxipr power
oil the State. Nothing comes more fnlIy with.
IN 1t than Banks and the business of BANKING
by whomsoever instituted and carried on. Over
TINS whole subject matter, it is Just as absolute
unlimited, and uncomfortable as if the Consti.
tuition had never been adopted, because in the
formation of that instrument it was reserved
without qualification
The principle is conceded, that the States
cannot rghtfu!ly tax the operations of the gen
eral government. They cannot tax the money of
The government deposited in the State Banks.
nor the agency OF those Banks in renting il
but will any man maintain that their mere 60
lection to perform this public service for tho
general government would EXEMPT the Slate
Banks and their ordinary business from State
taxation. Had the United States, instead Of
establishing Bank at Philadelphia, employed a
private Banker to keep and transmit their funds
would it have deprived PENNSYLVANIA of Tho
right to tax his Bank and his usual Bank onsr.
atoms II will not be pretended Upon wba,
principle, then, are the Banking establishments
of the Bank Of the United States and their usn.
al banking operations to be EXEMPTED from far
alton. 1t is not their public agency or the de.
posts OF the government which the State
claims right to tax, but their Banks and their
banking powers, instituted and exercised with.
in State jurisdiction for their private emoln.
ment-those powers and privileges for which
,neY pay bonus, and which the States tax in
their own Banks The exercise of these DOW. |
ers within State, no matter BY whom. ar nm
der what authority, whether by private citizens
IN their original right, by corporate bodies ere.
aied by the States, By fol eigners or the agents
o. foreign governments located within Their
iiihi's, forms legitimate object Of State tara.
uoh' from this, and like sources. from the
persons, property, and business, that are found
iesio'ng, located or carried on under THAR In.
fsolcilon, must The States since tho snrrender
OF the right 10 raise a revenue from iuno,,s.nJ
exports, draw all the money DecessayJ e. 49,
support OF their governments and The main,o.
nance 0. lheir independence. There il M NOR,
appropriate subject OF toxation than RanLs
,bs So anu pdlhIhg STOCKS, and none 10 which