Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1832-07-13

carried nm nv the Government of the United States
itself. separately or in partnership, falls within
the scope of the taxing power OF the State: NO,
thing comes more fully within it than banks ana
the business of banking. by who,nsoever institute
ed and carried on Over this whole SUBJECT mat
ter, it is Just as absolute, Unlimited, ana unea"-
troiabIe. as if the Constitution had never been
adopted, because in the formation ni that IN
strument it was reserved without qual'hcat'oo.
I, The principle is conceded. that the States can.
not rightfully tax the operations of inc oene.a'
Government. They cannot tax the money OF .ne
government deposited in the State banks. nor the
agency of those banks in RENTING it: but will
any man maintain that their mere selection 10
nerfnrm this public service for the General G0-
vernment, would exempt the State banks ana
their ordinary business from State taxa''"n:-
Had the United States, instead OF establishing
bank al Philadelphia. employed private banker
10 keen and transmit their funds. would II have
deprived Pennsylvania of their right to tax IN.
bank and his usual banking oPerationss 1t VII
not be pretended. Upon what principle, then, are
the banking establishments Of the Bank OF the U
States, and their usual banking operations. to be
exempted from taxation? 1t is not their pubic
agency, or the deposites Of the government,
which the States claim right to tax, but their
banks and their banking powers, instituted and
exercised within State jurisdiction for their pr-
vate emolument-those powers aud privileges
! for which they pay a bonus. and which the States
| tax in their own banks. The exercise OF these
powers within a State, no matter by whom or
under what authority, whether by private cit-
zens in their original right, by corporate bodies
created by the States, by foreigners or the agents
of foreign Governments located within their H.
mits, forms legitimate object of State taxation.
From this and like sources, from the persons,
property, and business, that are found residing.
located, or carried on, under their jurisdiction.
must the States. since the surrender Of their right
to raise revenue from imports aud exports. draw
all the money necessary for the support OF their
government, and the maintenance ut their indie
pendence. There is no more appropriate sub
iect Of taxation than banks. banking, and bank
stocks, and none to which the States ought more
pertnaciOusly to cling.
1t cannot he necessary to the character OF the
bank as fiscal agent Of the government, that It's
private business should be exempted from that
taxation to which all the State banks are liable;
nor can l conceive it "proper" that the sub
stantive and most essential powers reserved by
the States, shall be thus attacked and annihilat-
ed as means of executing the powers delegated
to the General Government. IL may be safely
assumed, that none of those sages who had an
agency in forming or adopting our Constitution,
ever imagined that any portion of the taxing pow.
er of the States, not prohibited to them nor de-
legated to Congress, was to be swept away and
| annihilated as means of executing certain pow.
ers delegated to Congress.
If our power over means is so absolute, that
the Supreme Court will not call in question the
consttutionaty Of an act of Congress, the subject
of which sis not prohibited, and is really CAL
cuIated to effect any of the objects entrusted to
! the Government" although, as in the case te-
fore me, it takes away powers expressly granted
to Congress, and rights scrupulously reserved to
the States il becomes US to proceed IN our legls'
! lation with the utmos, caution. Though not d.
: rectiy, our cwn powers. and the rights OF the
States, may be indirectly legislated away in the
use of means to execute substantive powers. We
NAV not enact that Congress shall not have the
power of exclusive legislation over the District
Of Columbia. but we may pledge the faith OF the
United States that as means Of executing other
powers it shall not be exercised for twenty years
or for ever. We may not pass an act prohibiting
the States to tax the banking business carried on
within their limits, but we may, as q means OF
executing our powers over other object place that
business in the hands of our agents, and then de-
clare It exempt from State taxation IN their hands.
! Thus may our Own powers and the rights OF the
States. which cannot directly curtail or invade,
be FILTERED away and extinsuished in the use of
means employed by Us to execute other powers.
That Bank of the United States, competent to
all duties which may be required by the Govern
mem, might be so organized as not to infringe on
our own delegated powers or the reserved rights
of the States, do not entertain doubt Had
the Executive been called upon to furnish the
project Of such an institution, the duty would
have been cherrfuIly performed. In the absence
of such call, it is obviously proper that he
should confine himself TO pointing out those pro.
mnent features in the act presented, which, in
his opinion. make it Incompatible with the con.
slitution and sound policy. Ageneral discussion
will now take place, eliciting new light, and set
Ting important principles; aud new Congress.
elected in the midst Of such discussion, and fur
nishing an equal representation of the people &C.
cordng to the last census, will bear to the Capt.
tol the verdict Of public opinion. and, | doubt
not, bring this important question TO a satisfacto-
~ result
Under snch circumstances, the Bank comes
forward and asks for renewal Of its charter for
term of fifteen years, upon conditions which
not only operate gratuity to Tie stockholders
| nf I,ito