The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-07-28

The State undertakes. by the creation of this
stock to pay the principal at the time stipulated by
the certificates, and in the meantime to pay the in
terest And when this is done the whole civil legal
obligation of the contract is performed. The impo-
siton of the tax upon this stock portion of the
estate of the holder, the representative of money
and liable to contribute to the support of the Gov
eminent, is separate and independent act, and col
lateral to the contract. 1t is only exacting from
the party the payment of a debt due from him to
the State, the amount Of which is measured in part
by the value of this stock.
In Ogden against Saunders, y Wheat. 800 Mr.
Justice Thomson saws:
THAT the true import of the term obligation, as
used in the Constitution, may admit of some doubt
That it refers to the civil or legal obg ation is ad
mitted by ALL"
And when the State pays the interest, and shall
nave paid the principal, in conformity with the
terms of the certificate, it will have discharged its
whole legal obligation to the stockholder.
1t is said, however, that the imposition of this
tax is breach of faith on the part of the State
" hen there is breach of faith, that impairs the
obligation of the contract, divests legally vest
ed right, 1t is an injury upon which the Court can
place its hand, and afford redress. But with re-
spect to any breach of faith short of this it is a
mere political questions question of morals; a
question relating to the moral obligation of the
! State, with which Court cannot interfere 1t is
so treated by Mr. Hamilton in his celebrated report
on public credit. The distinction is between a
statute that creates hopes and expectations and a
! statute that forms contract.
| III concluding the OPINION In this branch OF the
case it is only necessary to say, that the cases in
which it has been decided that the States have no
right to tax the United States stock or the Bank of
the United States, have no analogy to that now
under consideration. The taxing power, as a part
of the sovereign power of the State is only c0-ex-
| tensive with it, and the sovereign power of the
States does not extend to, or operate upon, those
means which are employed by Congress to carry
| into execution powers conferred on that body by
the people of the United States.
The next question is, whether.the State has given
to the Mayor and City Council the right to tax this
stock by the Act of ls4 chap. %? This question
clear of all doubt By the first section of the Act
of lS4l it is declared, "that all public loans and
stecks whatsoever Except those created or used by
the United States) shall be chargeable with the
public assessment; and by the sxteth section it is
provided that call county, district and city taxes
shall be assessed on the property valued under the
| provisions of this Act"
The objects of taxation with respect to the State
and city are indissoubly connected. The condition
OF the state was such in 1S4, that it became neces
sary to place within the grasp of the taxing power
every description of property to preserve the credit
OF the state from dishonor. But it NAV create sur
prise that the power to tax its own stock was grant
eu oy tne otate 10 the city This, however. was a
legislative question, and has been DONE The Ian
guage of the Act of 1S41 upon this subject is eT
press, and it is for the Court to expound the statut
not to modify or repeal it.
The only remaining question is whether assum-
ing that the State had the power to tax its own
STOCK this Is power that the State could delegate
10 the city.
In reference to this question, | entertain no
doubt '"'A' no
This subordinate political corporation, like the
counties, constitute an integral part of the State
They are subject to its supervision and under lis
control. When tax is laid by the Mayor and
City Council, 1t is tax imposed BY the State
through the fundamentally of the city. The
power emanates from the State. Burgess rs Pue.
Gill, IL; State Us. Railroad Company, - Gin &
johnson, $780,
As where the right il confarrad $780,
ton by the State to condemn land for public pur,
poses in the exercise of its right of eminent domain
the act is accomplished by the corporation, but the
condemnation is made by the State through the in