The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1865-11-03
the TAX QUESTION.
Imp ortant Decision of the New
York Court of Appeals.


In the cases argued before the New York
Court of Appeals at its last sitting. of the city
Of Utica against G. C. Churchill and others,
and Adam Van Allen against the Assessors of
the city of Albany; and c. P. Williams and
others against the same, the question of the
right of the State and local authorities to tax
shareholders in the national banks, was fully
considered The decision of the court was
given by Chief-Justice DEMO, all the other
judges concurring, except MIR. Potter, who did
not sit in the last case on account of being .
party interested.
Ju dye DEMO declares it incontestable that
prop erty devoted 10 public uses by the general
government cannot be subjected to the taxing
power of the governments of the States Of the
Union. National institutions and establishments
of every kind brought into existence by laws
constitutionally enacted by the national legis-
lature exist independently of the State govern
ment, and cannot be made tributary by means
of State laws for taxation, or in any other
manner to the needs or exigencies Of the State
COVER nments. But the Bank of the United
States was, equally with the national banks
now existing, trading corporation. The in
dividual means invested in the stock by the
private stockholders, were, before such invest
ment, the proper and legitimate subjects of
State taxation. There is no reason why they
should not be subject to that liability after be-
ing invested, unless the immunity was neces.
sary to the existence and preservation of the
confederate body with which they were con.
nected. If this liability of taxation be sustain
ed, it would appear that the States may tax
them out of existence, but so long as the prop
erty thus invested is only taxed in common
with other individual property, as is done In
the taxing OF lands of this State, the apprehen-
sion of such danger is purely fanciful.
In the decision of the United States Supreme
Court, in the case of Mccullough against the
tonal was upon the operations of the bank, an
instrument employed by the government of
Union to carry its power into effect, and did
not deprive the States OF any revenues which
they originally possessed.
The proposition to draw all the property of
the people OF the Union invested in banking.
constituting large proportion OF the personal
property of the nation. for the duty OF con.
tributing to support the State governments.
whose sphere it Is to enact and administer all
theta VS. which regulate the acquisition, en-
joyment and transmission Of property and the
administration of justice, and the conduct of
State and local government, would be frightful
to contemplate. The court concludes with en-
tire confidence that there is no impedment to
the taxation of these shareholders arising out
of the consideration that banking corporations
are not themselves taxable.
The National Currency act expressly author
ICES the shares of these associations to be in.
cluded in the local amounts OF taxes imposed
by State authority where the banks are located;
and such amount is not 3 taxing of the prop
erty on which the capital of the bank has been
invested. The shareholders are not owners of
the United States bonds held by the hanks.
The banking corporation and not the share
holders, its creditors, is entitled to the excep-
ton; and therefore the Court of Appeals sus-
tains the action of the Supreme Court Of the
Nfh District, end revezses that of the Third
District, and declares that the shares held by
stockholders in the national banks are liable -
suca to local taxation like other personal pro-
perry.