The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1832-07-24

absolute. unlimited and uncomfortable as II
the Constitution had never been adopted,
because in the formation Of that Instrument,
it was reserved without Qualification.
The principle is conceded, that the
States cannot rightfully tax the opera
tions Of the general government. They
cannot tax the money of the government
deposited in the State Banks, nor the
agency of those Banks in renting it ;
but'will any man maintain that their
mere selection to perform this public
service for the general government
would exempt the State Banks and their
ordinary business from State taxation.-
Had the United States. instead rof es-
tablishing Bank at Philadelphia. en-
ployed a private Banker to keep and
transmit their funds, would it have de-
prived Pennsylvania Of the right to tax
his Bank and his usual Banking opera
tions 1t will not be pretended. Upon
what principle then, are the banking es-
of the bank Of the, United
States and their usual banking opera
tions, to be exempted from taxation.--
it is mot their public agency or the de-
posits of the goyernmopt which the
States claim right ~torsax, bbt their
banks and their banking powers, insti-
tuted and exercised withip State juris-
diction for their private emolument-
those powers aud privileges for which
they pay bonus and which the States
tax liz their own Banks. The exercise
Of these powers within q State, no mat
ter by who n, Or under what authority,
whether by private citizens in their orig
inal right, by corporate bodies created
by the States, by foreigners or the
agents of foreign government located
within their limits, forms legitimate
object of State taxation. From this,
and like sources, from the persons, prop
erty, and business, that are found resi-
ding, located or carried on under their
must the States since the
surrender of the rightsto raise q reven-
ue from imports and exports, draw all
the money necessary for the support of
their governments and the maintenance
of their independence. There is no
more appropriate subject Of taxation
than banks, banking and bank stocks,
and none to which the States ought
more pertinaciously to cling.
1t cannot be necessary TO the character
of the bank, as fiscal aeent of the gov
ernment, that its private business should
be exempted from the taxationto which
all the State banks are liable; nor can
IAconceive it t" proper" that the substan-
tive and most essential powers reserved
by the States shall be thus attacked
and annihilated as means ofexecuting
the powers delegated to the geperal
goYernments 1t may be safely assumed
that none Of, those sages who had an
agency informing or adopting our con-
ever imagined 3hat any portion
Of the taxing power Of tee Stefes. not
pfohl lhltPd 20 p1~pn nor ated 70
Congress, was to Be stknpf akay and
anmhilated as means of executing
certain powers delegated to Con-
gress.
, IF our power over means is 30 abso-
Lutte that the Supreme Court will not
G all in question the constitutionality of
an act Of Congress, the subject of which
is" not prohibited, and is really calcu-
lated to effect any of the objects entrus-
ted to the Government" although. as
in the case before me, it takes away
powers expressly granted to Congress,
and rights scrupulously reserved to the
States, it becomes US to proceed IN our
with the utmost caution.-
Though not directly, our own powers
and the rights of the States may be in
directly legislated away in the use OF
means to execute substantive powers -
We may not enact that Congress shall
not have the power Of exclusive legisla-
ton over the District Of Columbia, but
we may pledge the faith of the United
States that, as q means of executing
other powers, it shall not be exercised
for twenty years or forever. We may
not pass an act prohibiting the States
to tax the banking business carried on
within their limits. but we mays as a
means of executing our powers over
other objects, place that business in the
hands Of our agents, and then declare it
exempt from State taxation in their
hands. Thus may our own powers and
tho rights Of the States, which we can
not directly curtail or invade, be frit-
tered away and extingunhed in the use
of means employed by US to execute
other powers. That Bank of the
United States, competent to all the du-
ties which may be required by the Gov
ernment, might be so organized as mot
to infringe on our delegated powers, or
the reserved rights Of the States, do
not entertain doubt. Had the Exccu-
tive been called upon to furnish the pro-
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