Daily national Republican., 1863-06-09
THE NATIONAL BANKING SYSTEM

The carly establishment Of banks under the
recent act OF Congress renders desirable the
publication Of those decisions Of the highest
court in reference to the powers OF Congress
and the powers Of State Legislatures. The
publishers OF the Bankers Adydzh'e, New
York, has made public, In pamphlet form,
the most noted cases before the Supreme Court
Of the United States In reference TO taxation BY
States and cities In 1919 the Court OF Appeals
of Maryland enunciatod the doctrine that the
property or capital Of the Bank Of the United
States was legitimate subject Of taxation by
the State. Mr.. McCuloh, then cashier OF the
Baltimore branch Of the bank, (and afterwards
First Comptroller of the Treasury of the United
States )by direction of the Board carried the case
up to the Supreme Court of the United States
for revision. Judge Marshall was then pre-
siding Judge, an office he held thlrty-ive years.
Fortunately for the country, his master.mind
reviewed the subject, and his opinion In the
case may be considered as the basis OF law and
practice, since the decision of the court reversed
that of the Maryland Court of Appeals. Judge
NJ. then said:
If any one proposition could command the
universal assent Of mankind, we might expect
1t would be this; that the Government Of the
Union, though limited In its powers, is su-
preme within Its sphere Of action. This would
seem TO result necessarily from Its nature. It
Is the Government of all; Its powers are dele
gated by ALI II represents all, and acts for ALL
Though any one State may be willing 10 con-
troll Its operations, no State Is willing to allow
others to control them. The nation, on those
subjects on which II can act, must necessarily
bind It's component parts. But this question
Is not left to mere reason; the people have, In
express terms, decided II, by saying, this
Constitution, and the laws Of the United States,
which shall be made In pursuance thereof
shall be the supreme law of land, and by re-
qulring that the members Of the State Legisla-
lures, and the officers of the executive and ju-
dlclal departments Of the States, shall take the
oath Of fidelity TO it,"
In the late case Of the Bank of Commerce
Us. Commissioners of Taxation" the Supreme
Court OF the United States reversed the decision
Of the Court of Appeals of New York, and de-
clded that the bonds Of the United States held
by the bank were free from taxation.
As to the constitutionality of legal tender
notes, the case recently decided before the su-
prone Court of New York, and contained in
the pamphlet, brings the subject fully before the
public. The New York court says:
Money is necessary TO carry on the war
and sustain the Government in the exercise of
all the foregoing enumerated powers. II, in
the opinion Of the Legislature Of the nation, 1t
is necessary aud proper TO issue Treasury notes,
and 10 make such noteS legal tender, In order
credit of the Government, and prevent itE
failure and overthrow, most certainly the legis,
latlye authority Of the nation has the sovereign
and unquestlonable right SO to declare anc so 10
enact. 1t does not pertain to the Judiciary to
question the propriety Of the exercise of its un-
doubted discretion on the subject"
The publication of the pamphlet quoted will
be useful to bankers as we'll as to legislators,
and Is appropriate to the times.