Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1865-09-05
Can the Capital Stocks of National Banks be
TaYpd

Without attempting discussion Of this ques
ton, we shall take this occasion to suggest q
few considerations only respecting it. The New
York World has just published an elaborate
opinion by George I. Curtis, prepared last year
in which that eminent lawyer, after careful
examination OF the decisions Of the Supreme
Court affecting the question, held that the states
had no power to tax the associations themselves,
but might tax the stock to the individual share
holders. The distinction which Mr.. Curtis
makes seems to be good, logically and legally,
and his reasoning IS iorcible and convincing,
The reasons he gives for the opinion that the
associations cannotaabe taxed directly, is the
same as that given by Chief Justice Marshall
in the case Of McCullock vs. the State of Mary.
land, thet the bank Is an institution which Con-
gress can constitutionaly authorize, and being
an agency employed by the Government, it can
not be taxed. But stockholders interest in
the bank is mere personal property, and can
therefore be taxed like other personal property.
Reasoning similar to this Of Mr. Curtis led
one OF the New York Courts to make decision,
that the stock in these national banks was liable
to state sHd municipal taxation, and has induced
those who have gwen the subject any thought
to expect that the individuals who owned stock
in these bonds would not escape taxation on
this portion of their personal property.
But whatever. doubt there might have been
on this subject at the time Mr. Curtis opinion
was written, (Feb., 1864 } there can bo no doubt
that, by the law passed In June, 1854, the shares
in oil national banks organized since that peri
cd are subject to taxation. That act contains
this provision
Provided That nothing in this act shall be-
construed to prevent all the shares in any of the
said associations held by any person or body
corporate from being included in the valuation
of the personal property Of such persons or cor
poration in the assessment OF taxes imposed by
or under state authority, OF the place where
such bank is located, and not elsewhere, but not
at a greater rate than is assessed upon other
moneyed capital in the hands Of individual cit.
liens OF such state.
Provided further, That the tax so imposed
under the laws Of any state, upon the shares Of
any of the associations authorized by this act
shall not exceed the rate imposed upon the
shares in any Of the banks organized under the
authority oi the state where such association is
located
Prorided also, That nothing in this act shall
exempt the real estate oil associations IRON eth
or state, county or municipal taxes, to the same
extent, according to its value, as other real e.
tate is taxed.
There can be little doubt, In view Of the fore.
going provisions, that the sharta. in National
Banks organized since June 1864, are liable to
state and municipal taxation, and there seems
to be very little if any doubt, that the shares in
those organized prior to that date can be taxed
in those states where the laws provide that the
shares in such institutions and not the capital
stock may be taxed.
Whatever, however, may be the ultimate
decision of this question Of taxing the shares Of
our National banks-although there appears to
be little question respecting what that decision
will be under the law Of June, lS64-it is pure
ly question of constitutional law, and as such
should DO discussed and decided.