The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1855-05-02

lnat their mere selection TO perform thls
public service for the general government
would exempt the State banks and their or
dinary business from State taxation. Had
the United States, instead Of establishing
bank at Philadelphia, employed a private
banker 10 seep and transmit their funds,
would it have deprived Pennsyly mia Of the
right to tax his Bank and his usual Bank
ing operations! 1t will not be pretended
Upon what principle then, are the banking
establishments Of the Bank of the United
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 arght TO
tax, but their banks and their banking pow
ers, Instituted and exercised within State ju-
risdiction for their private emoluments-
those powers and privileges for which they
pay bonus and which the States tax in
their own Banks. The exercise of these
powers within State, no matter by whom,
or under what authority, whether by priv ate
citizens in their original right, by corporate
bodies created by the States, by foreigners
or the agents of foreign governments within
their limits, forms legitimate object of
State taxation. From this, and like sources
from the persons, property, and business,
that are found residing, located or carr ed
on under their jurisdiction, must the States
since the surrender OF the right to raise a
revenue from imports and exports, draw all
the money necessary for the support OF their
governments and the maintain ance Of their
iDIunapl, fHI,ara -
ate subject of taxation than banks, banking,
and bank stocks, and none to which the
States ought more pertIniciously 10 cling
1t cannot be necessary to the character Of
the bank, as fiscal agent of the govern
ment that its private business should be ex
empted from that taxation to which all the
State banks are liable, nor can / conceive il
proper that the substantive and most es-
sential powers reserved by the States shall
be thus attacked and annihilated as the
means of executing the powers delegated 10
the general government. 1t may be safely
assumed that none of those sages who had
an agency in forming or adopting our con-
sdtution ever imagined that any portion oil
The taxing power of the States, not prohibit
ed to them nor delegated to C,ngress, was
to be swept away and annihiat d asa means
Of executing certain powers delegated to
Congress.
If'0ur power over means is so absolute
that the supreme court will not call in Ques
tioh the cons'iutonality Of an act of Con-
yress, the subject of which is mot prohibit.
ed, and is really calculated to effect any of
the objects entrusted to the Government"
although as in the case before me, it takes
away powers expressly granted to Con-
gress, and rights scrupulously reserved to
the States 1t becomes Us TO proceed in our
Legislation with the utmost caution. Though
not directly, our own powers and the rights
Of the Safes may be indirectly legislpted
away in the use of the means to execute
substantive powers. We may not enact
that Congress shall no. have the power of
exclusive legislation over the District of
Columbia, but we pledge the faith Of the
United States, as means Of executing 9TH
er powers, it shall not be exercised for TWEEN
ly years Or forever. We may not pass an ac
prohibiting the States to tax the banking
business carried on within their limits, but
w ipi1 d. q vi SSNSSA Ia pui PO"
ers over other objects, place that business in
the hands Of our agents, and then dec re
it exempt from State taxation in their hands.
Thus may our own powers and tie ghts
of the States, which we cannot direct|v cur
tail Or invade, be frittercd away and extn-
gulShed in tie use of means employed Fy
us to execute other powers. That bank
I1n;,oI Stntac nj 10 oil IA.
ties which may be required by the govern
ment might be SO organized as not TO in
fringe on our own delegated powers, or the
reserved rights of the States, do not en-,
tertain doubt. Had the Executive been
called upon to furnish the project Of such
an institution, the duty would have been
cheerfully performed. In the absence of
such call, it was obviously proper that he
should confne himself to pointing out those
prominent features in the act presented,
which, in his opinion. make it incompatible
with the Constitution and sound policy.
general discussion will now take place, elici
ting new light and settling important prn-
ciple=; and new Congress, selected in the
midst Of such discussion, and furnishing an
equal representation of the people, accord
ing to the last census, will bear TO the capi
tol the verdict of public opinion, and
doubt not bring this important question to a
satisfactory result.
Under such circumstances, The bank comes
forward and asks a renewal Of its charter
for term of fifteen years. upon conditions
which not only operate as gratuity TO the
stockholders of many millions of dollars, bul
will sanction any abuses. and legalizc any
encroachments.
Suspicious are entertained and charges
are made of gross abuse and violation of its
charter An investigation unwilingly con-
ceded, and so restricted in time as necessa-
rily to make it incomplete and unsatisfacto-
ry, discloses enough to excite suspicion and
alarm.
In the practices Of the principal bank par
| TALLY unveiled, in the absence of important
witnesses, and as numerous charges, conf.
dently made, and as yet wholly uninyesti-
gated, there was enough to induce major
| ity of the committee Of Investigation, a com
mittee which was selected from the most a.
BILE and honorable members Of the House ol
Representatives, to recommend suspension
Of further action upon the bill, and a prose.
cuion of the enquiry, As the charter vet
had four years to run, and as renewal was
not necessary to the successful prosecution
of its business, it was to have been expected
that the bank itself, concious Of its putty
and proud Of its character. would have with.
drawn its application for the present, and