Nashville daily patriot. [volume] (Nashville, Tenn.) 1855-1857, 1856-02-15


of our readers, and especially those con-
cerned in the collection of the public reYe
nues from that source:
NASHVILLE, Feb. II. 1856.
SIR:-I have had under consideration your
letter asking an official construction of the act
of 1854, chap. Is, entitled "an act TO amend
the act of the 14tR December 1927. entitled
All act >to suppress Private Banking" and up
on the plea of constant official engagements,
must excuse myself for the tardiuess Of my
reply.
The act Of 1854, CHI. lis, is in these words:
"Sec. l. Before any Bank or banking associa-
ton, or association of any other State or Ter
rtory of this onion, shall keep an office or
agency, or employ any person, association, or
corporation, in this State for the purpose Of
transacting within this State, the business
which such banking association or corporation
was created to transact, it shall be the duty of
the agent Of the said banking association, to
make affidavit before the Clerk of the County
Court OF the county in which such agency is
sought to be established, of the amount Of
capital of said foreign association, iatladed to
be used ia said county within tlceycenoaths after
nlakjHg said GBillCjt and pay to said Clerk
tar Of one half Of one per cent. on the amount
mentioned IN the q6iddCa; whereupon, il shall
be the duty Of the County Court Clerk to is
sue license authorizing the said banking as
sociaton to establish an agency in said county,
for the use of said amount of capital"
The seGSnd section creates a penalty Of
$4,000 against the party exercising said priyi-
lege without a compliance with the foregoing
terms; and the third and last section requires
the Clerks OF tie County Courts of the seye
raj counties, 10 report to the Attorney General
of their respective districts, all violations Of
the act
1t will be observed that the act in question
effects material modification Of the previous
policy of the State in reference to banking
agencies Of the kind contemplated therein.
which for many years have been disiavored
by the legislation Of Tennessee. 1t seems,
however, that under severe penalties and re-
strictions the privilege may now be exercised,
and is recognized as among the sources of pub
lie revenue; it is also manifest, from the heavy
penalties annexed for violation of the ac,,
that the purposes Of public revenue exerted
the controlling influence in inducing the Legis-
/ ature to relax its policy upon this subject.
/ Heretofore, the legislation upon the subject f
/ foreign Bank agencies has been very stringent
indeed, and we are not permitted to disregard
! this loug established policy in constituting the
statute under consideration. The act, it must
/ be conceded, is somewhat obscure in its terms,
aud conflicts Of opinion as to its proper con-
struclion are 10 be expected. We are to con-
! sirue 1t, however, 50 as 10 give effect to the
! intention Of the law givers, which, il not
clearly Indicated upon Its face, must be sought
in considering 1t in connection with other
statutes ~ Pari mdteria. Considered in this
view, 1t seems evident that the intention was
to create an additional privilege for the pur
! poses OF revenue, which has been heretofore
| interdicted under the severest penalties, or
| only permitted under the most onerOus taxa
ton.
! The words used in the statute implying that
! the foreign Banker is to pay the tax upoa tie
amount suited IN his g0iiGcH, if taken in the
! literal sense Of the terms, would defeat what J
conceive to be the manifest object OF the law;
/ but regarded as whole, and construed under
the legal rules indicated above, the intention
OF the law-gyers Is made manifest, aud the
law itself, efficient for the purposes coutenpla-
| ted.
/ 1t Is my opinion, therefore, that the tax of
one halfof one per cent prescribed in said act, Is
| properly chargeabe upon the whole amount Of
caPit@ actually used 10y the foreign Banker for
! Banking purposes during the year, aud that
the party who transcends the amount stated
in the affidavit without paying sad tax, sub
jects himself to the penalties prescribed in the
! second section of said act.
The term "capital," as used IN said act, has
a technical Specification, and means simply, the
amount Of money the banker intends to oper-
ate upon during the year. That amount, lie,
| OF course, has right to invest, re-invest aud
turn over as he peases, and the proceeds
and profits thereofdo not enter into the estj-
mate Of the amount for which he is to be taxed
for the current year; but if after it is invested,
aud while the notes, bills or other securities
when represent II, are yet immature and un-
P"'d he proceeds 20 'hVeStAn additional amount
10 The same way II Is ont an increase OF bis &C
i've cap'ta' ana Is subject TO The tax contempIa-
/ Tea oy the statute. II theioreign Banker, there