New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1863-10-10

th,t with view 10 flcIitate Federal loans 'onsios'
sboul attempt to subject oil individual bOlIol ing an
fbe States to a low i0ie Of interest, Willie the Federal
Treasury allowed 70 contract at higher rate Inns
ycud bear some resemblance TO Tie lal Vtch is now
questioned and yet il would BE props 10 cons Ger
II law passed IN The execute Of tine power 30 boIo"
money on tho credit oi tie United ST. Is. >, =.
The question hOs ar On act q Congress CONG We
considered 20 haze been paSscd IN the execution q an
enumerated Federal power. he's been discussed \. va
Iiety OF forms. particular laws o! lig''' =.
have come uldcT coasidera ion Il re tl.,.-. w.
legislative and judicial hanclo s o. tie GoyeInr ~
Tie discussions most material to he censlv'leu' t''
cause they aIe absolutely aStao.'gsf ired s~tes
The debates IA tLefo ,5ses have Cs'.' 49, if
words aecessofy and pQler AS USED III '.' o
TO O certain ex;ort the necessity ana liollett .! ul
enncment Ipus. rest in the discretion % the Legsla'
frre BIT 10 hold that the exercise 81 i4h ", - II
final and subject 10 the exa n44a'oh " Iu' ul0
Nould be TO breaA down ell limitations upoA Ac power
Cffhe General Government Accordingly tllth 40
T1~e haa ever rtimaiel the existence a. any uch cE-
irene doctrine. On the other hand, TIC question WheA
ora gwen measure is tie most suitable or e lent foI
tie execution Of an enumerated power must o. coarse
be left to the discretion Of Congress and tna discretion
cannot he reviewed b. the courts The ccny cs il DE-
ferminine IN particular case v .'E 'he q IVY q
enactment bas such relation 10 the power which 1t IS
said TO be passed to Gerry into execution that can oe
efirned to be necessary and proper Iof thit pose
The most thOrOugh examination OF tho Suec Was tlhi
which was had on tie several occasions when tie con-
stitutiOnGhy of tie Bank of the United state sane DC.
fore the Supreme Court NfcCulloueh aSt Tie st9te
Of Maryland, Wheat. 3l6; Osborn ngt Inc l =.
Bank 9ed 1857 The act was sustained on the theory
arrangement
the financial operations ofthe Goycrument IL ",s tot
supposed to be absolutely necessary but 70 be so N we
sense Of being appropriate ana GHeety eoINeE'.,.'
and useful Iha. iud gmCnt is O. 30 accepted by the
Site tribunals ss t-Ie exposition OF TIE COr.ttu-
fion on this point. hut the resemblance IN lSih,
riple between the legislation then in question end
That which we are conducting. is rot SO Sink
ing rs to oford ruch sid in tie present difficulty: But
the Principles announced by The eminent Chief Justice
TO be irreconcabe with Tie validity O. The
legislation In question. II was conceded nm we POW
sTs Of tie Government were limited aud that t"- I'm.
It's we're not to be iranscended; but II W' aant ined
by course Of reasoning which cannot easy 90 conlro
serted that the National Legislature possesses Gis-
creton in tie ron ct the means by which the pow
ers conferred BY the Constitution were 20 be earned
put 1t was eded that the must be such as
were cpproviGfs and p'Grly adapted 10 TIE END au-
tholized to be accomplished In another part OF the
opinion it irtmated that tie means II olaer TO DC
legitimate and 20 fen within The qaa ing word e1
esssy and proper must be such as were either necat
,tcs,s or eodAers to ihe principal ebeet
ihc delegated rover. Was ever before sEppoel 70 De
.ilent the contract Of loan that the rights q ohef
Icr strangers 10 the transaction were 10 - con-
lIoLcd affected Either the borrower or he lender
may insist upon amy stipulation 70 which tie o'hr WI
consent. and when the former is a sovereign Shte
Il ray agree 70 any concessions on It's own lHt nov In
consistent with ifs constitutional hmafoi nia irsi
upon imposing any terms upon the lender when y may
be thought exrcGert 20 require The arrange meat o!
these mutual spaaiioAs embraces al which Is M
or which can DC appropriate! attached To i.e ~h-'a
contract OF loan. provision winch Is 10 com! y! o.oi
parties no; connected with TIL transaction o. their loss
enough TO the advantage az The lender cehhc' "a apo
priate for II is foreign 70 ~ Of tie transaction
snd has before been employed IL connection WIN
euch arrangements consolidated Govern ent n.isli
annex such the contract for II has le7f an
thOrity al is citizens when not consul nonAlli
restrained As being Hce4fEi r,qeisis o. tsss1sal
IL not so in any sense uhich would enable tie Gov
eminent 70 impose on The citizens DO should a'e DUG;
ness relations with tie holder Of the securities co1Gi
tons which woulC conciliaie such holders
The power which tie Constitution ccnie,s upon tie
Government 20 effect loans Is not - be exercised
On iariiun Ike the taxing power IL requires only
party willing 70 advance the funds upon the forms
1faht ho Of mod.
Cocrciye 70 any IL requires cons ntne party
only. unlike tie taxing power which ilAi.es .tgu
coercion and does not seek tie consent OF az! oAeF
party.
But for single authority which will here mention.
should think II very plain ihat the yOwer TO borrow
money on the credit OF the United states did not e-o1
ze Congress compel Id.s idues to accept Treasury
notes IN discharge Of debts payable II mols!. On,
credit of the United States contained in itself prohib
btion TO tax the securities gwen upon inc osh OF 'he
State authority The tax, which was ee:d meSel %as
laid upon certain stock Of the United States GO ho@af
and this court Of opinion that TIE case might have
turned upon that circumstance end int money e''
ed by any citizen in Federal loans was YET taxable aos
will the mass Of the property VI the citizens uCof tc
laws of this State which laws tax all property aIse
(The People oet. The Commissioners Of Taxes, 49,. ~
" Y. 1872 An act Of Congress was then pi9se1, ae'
carDg in that the scrp Of the pnbhc deLt o. nc
United States should he sui jet u taxation BY the
States and the distinction upon which We proceeded "ss
dsalowed and the tax declared Illegal Aprior'-a state
tax imposed upOast0ck issued since tic decaIatt ao
mentioned cannot lie sustained in the supreme Court
Tie principle las some analogy TO tie one we ar exam
hing Tie lfws Of tie States Oh the subject OF hIaon
for State purposes fully within the reter Cd nights
of the States those which relate 10 private contracts
and tie payment o. individual debts. The general
Government has primary jurisdiction reipeoi TIC
legal arrangements which the states may mare Oh ticI
Of these subjects and yet it las been he'd that ne
power to borrow money alone confers upon the sccll
ties given for the loans quality which no otheT plofy
has, by exempting them from taxation. hope IL WI
not be attributed - an unreasoaabe iTlGe 81 oIieA
when feel compelled 10 say tha have not been aile
appreciate the reasons upon which that conclusion
was reached. However fully acknowledge TIC Gus! o.
following the Judgments o. TIE supreme uIDlh'i ene'
since the jud gmcIt referred 20 was pronounced, Nc
have coDfOrGod decisions n similar cases u We
sule laid down and shall continue 10 do 50, !
think the Law eXempiing the federal bonds from STATE
taxation foreign 20 and as uncpnneced Nih we
power effect ledeI y loans as that which declares tLe
Treasury notes legal tender IL the pa. meLt "a ceJs
end acknowledge the analogy which exists between
tie cases. BlI tie Judgments Of the SgpIeme ccufl
did not proceed upon " Lich would yuoiA! te
legal tender clause. Those Judgments accoTdIg 10 tho
published opinions required the public bonds, as iAsiIu'
nents or means eUpOyed by Congress 10 CARY out tie
power 10 make loans AID ~ Of tie saIo Cos ~ nature
as the Bank Of lie United States. Ii clothed them VIII
immunity but did not propose 10 render them hliu
nents Of coercion Deciding tlis distinction 70 cut
do not think II proper 10 act upon the analogy when
have conceded. eIn Therefore Of oPiaiog va tne
clause i'll the oct making The notes good tender ia Inc
payment Of private deDts can1o. Je sustained Ger TIC
power ~ borrow money
But en- Of opinion that the legal tender clause is
pngnalt 10 express provisions Of tie Conliiuon re-
Der TO the Prohibition imposed upon TIE States 70 mako
emitting but gold end silver tender IN peyment Oi
tebts and 10 that which c0ufers upon Congress the
power 10 coin money and regulate TIE 'ahe thereof ana
Of foreign coin These provisions are IN PoJ lafteria
and nust be cor sdcrea in connection with each Other
end think the nearing Of both Is thai was the set
led determination Of the Convention tha' compulsory
tavrnents could OILY BE- made II coin. 1 nave
slreadr considered tie coming power ID connection
with lie argument tat II embraced ~ terms the
power TO fab1ioate money ohef t.in miami t'. or