, 1866-04-26

the Tx 30 Imposed under the IA ~ OF any state upon
The shsrea Of sny Of the 1stocIsttous authorized bv
this act, Ahall not exceed the rats iupo.ed upon
located I4o,Sded aiso. Thst nota.ns II tbs scl
either Stale County Of muuteipai AXE. to ihc sam.
ex,ent. according to the value as other real cslats
vii b. observed ,bst 1t does no, profess In c,n
icr bat It recognises the power a. already existing
IN the State; and IL discl Nu1B all intention 10 Dc.
priye The sisies Of the right to tax these sharcs
direct and co11soi the e1eEe'sc Of the pove a. We
hayc tecn, II entirely imperative wnen lesied bT
es hess y n Gous,
by the Statcs. Is an independent power 1nl m,y hc
cxei icsted without Tic control Of the general Uoy.
cI1msnt; ah,s pEoSso coniers no authority, nor
coes Il absdsc ans, but Is simply nugalor5 and 10.
We nay apply The ressoninc Of the
The ts3ne pov er Of The State With the eamc force
and with equal Justice, As % The general Eoycrn
msns; moments rea, cton viii show that TIC
fepec applicable in the one case ~ In The otncf
II The night were conceded 10 the general Govern
Mtht 70 Unit q control taxation N the states, It
wonld involve The power .o their collection
ana The po"er to prohibit involves the authority
70 render the power to rase the revenue necessary
Ios M ne support Of the State government gseesa.
naIce IN retaining this power the State govern
ments and confenin: the authority on the Federal
hoseSnmeht 10 control the exeftlae OF s1ch right
are prup0sliiuns that cannot ba denied. And A.
though the power 10 control docs not necessarily
dcstror,aud # carried TO excess would be an abuse
lie ] Government and SIich need never to he 10. D.
pretended. SILL th,s IL question OF power and no.
oIe Of 1ts prudent and just nse-
We may al.o. Win eqnaI force and propriesy ap-
ply the reasoning Of Chef usi!cc Narahai to the
want OF power ID The Federal Government to limit
mas ssy that The o.uer OF shsres In such hauks
shall mt be taxed at their value by State or ii so
taxed that they thalt only bear specific rate, they
nly saF the sHre Of anE and every othcr nrticl x
jct 10 Iaxatlpn. Thef may say The same OF real or
personal property. Of money, Of merchsndise, Of
Dnte* Of hills. Of mortgages at stocks in bariSa
Insurance companies. and In = wp,d. Of ererr sne
cies OF property alwcys reeoc1,fxrd a. tic prorer
and legitimate objects Of ,s1siion. Tue American
and uned poWs 10 The nse oxes seh
1neDt when they adopted thc Federal Constitution.
They designed that lie two Goseruulcnts should be
| md frm1in co-ex1steut; that neither ehoulu ha
arue,t W,lh AUTHORITY for the dcsfrur,inn t,f ths
o,hcs and, although sepa.ate and distinct In th.ir
workings, each was regarded as equ.lIy necessary
for the Drompt1op nr flIe ann. ar rho nnn1Ie I'M
10 secure tEcm IN lhe cuioyment al III, snn 1ha
blessings Of liberty aud pefsonai securi,y' 49,
on, revenue fnws. tLe rnte of ,nIaftnn nnst ~
tnua urd must he inro.e srrnrd1nn ~ rsine anS ~
1iis 100 in rrcar 10 ever species Of taxah iron.
s1ss. cond hnyc enr h,p,n otc .. Is na nc1 9 Con
srpI,cahle under our reyc1tse system "u md v" 1fm
conld be conceded that it wae bindins on State an.
counsel Wnni1 moi h. as,1 ,h 20 iy y w "
he c!au,e Snrb cnnsffr,inn s.eu nnd ~
an Tfese ~ aGd y - '1n 'npo,ns ta1
be thc casc. ali ,he S,ats hancs mr. rhsnrh.d ~
Ihese Nafionai banks. o, shai "a ouf ofeSi.fencs
viii il then he conendrd mai 1Ic :;tat, net es..e
| to lax the.e slsIrs ecsusrs ,i,rrc ,s no s,m1sr
flock Of State banks 10 tax: Snch a cnn,.n,ct,n1
would be aiIoscsner loo literal and could no, have
been In The niDi Of thc IecisIal,1re When Jhe rr
Mar adopjrd. Pcrsone faD'iinr ihe.c ,rcs sre ss
projected by their State Goyrrfmentia Ia tdc enjoy
lie perceived why ibey rhonii NJ a cIsas h.
lryeIccrd from sharing The baffncus tn,poscd unon
all others for inc support OF their Stste Govern
mini.
Nor can we perceive any force IN the arcumeu.
that. although there ehtrt+ are not Government
bouls, txemp: from taxation, still they represent
such bonds pledged by The hank a. security iur the
payment Of Ill Its liabilities. The bonds thu.
pledged belong to the hanks, and not the eltarr.
hp,dels. N1lE Shareholder sullscribes for rtOck
| At rays htE money 10 the cory,ota!11p. wIlch bv
1aw has tecumc legal but an iEcorporal culty and
The money ihur pntd becomes Tie lanper,y o, tle
clut e. such honde, thcr Hrc lis proneriy Il, every
stntc of TIE term and when they arr pledged with
ie proper officer tho plymcnf Of thc lIabI1i'ies
holder has no .lchi, undcr any circumstances. 10
/ withdraw any portion Of these bonds t1u. pledged,
tu1 r. o2nk may in the mode prescribed BY ,hs
| Ii would be more ncariy sdmlssahle TO eay that
The circulating notes Of The hank and liz certdcacs
ofdcrosit represent thetc bonds, than thai ihcv
ETC represented by the shar1s The former hayr a
| prior lien On the bonds md they are tru=l land
crea,cd expressly Tor their redemption. and It ha,
! moi, NC prpsnme. occurred 10 a!,y one ;hsl thc
circulating potc* are exempt ftom taxation because
they haze an ultimate cialin these bonds II lhcy
are NOT olhcrsi=c paid. The certificate ofsiocS
n,ay e DECLARED, and to share ii any as-ets that
ma5 remain after all the liabilities OF The hank arc
control over ,he property. Of auy owneFsh.n 10 II
VIII 1t he commended tnat when The sAaTes
amount 10 two Three tInncs a. much as the honds
I tnsrr 4ft,o ho~o.
bonds the zane, that all the shares arc 10 he ar
cnipt: And we can perceive no ns.son tyhv snch IA
noias reasonable a. when the ,haIe: sFe equsi il
and Reasonable to contend ,t,ai The rrnl ana n+r
tonal properly, ard, in word, eyeSythinr dir 5ffecv
| ofet upte1y connecIei with thssc hnts sbnn1d ~
exempt ftom State taxnttonps 1hese shares in The
sha, they arc moi exempt, and nc fastiy. ~ we} y
When our LeCialatuEr granted and the free bsn.-s
! Of the Stale oiganized under their ctarfera 1he
coporatlons thus created became fable to perform
euce. and thc franchises thus grauted 10 ibcm Be-
Came vested rights, npon which they could insist
and bad ,he power 10 enforce. 1hei could moi be
modify OF resume them, untll they should be for.
tcilcd voluntarily surrendered by tne ca,posssc
and lhvir acceptance. With .lc Conditions iinnessl
became q contact between She Stale aud these
hanks. All the tu,ies which they thus engaged to
perform mnst he hrld ob!irnsory upon Ihe banks,
and to release them from their performance aains,
the nil oflhe state would be 20 nuar hc oaicstiou
OF ihc contractant 10 violate or he Su
PRIME Court Of the United otaes referred 10 shove
/ ANY obligations which they have assumed being
IN The manure Of contract, cannot be released cx.
crpt bE the State. There bank. agreed, when they
\ adopted their chartets, ahat the shares Of their
capital r'ock should be deemed personal property.
and should be liable to taxatio1 BY the Stale Tbls
vas their acrernenf. Notwithstanding it has been
held In the OF Wes:on The City or Charles.
ton. Pei 3l, that the bonds Issued lly the United
s,air. GosslnineE. Nsls moi the subject Of sta,e
taxation, aid inrr charter authorizes them 10 die
| eEch bonds with The Auditor a. reserved fund 10
\ secure The redemption OF their circulation. Even
II they had considered thcse bonds the aIock aud
The shsics as representing 1t, they had tho right
to agree With tue State to pay tax on such bonds
as consideration for The franchise. they theu re-.
ctiscd, apu thar thu shareholders did agree 10 pay
the eaSne rate Of tar on thef shafes as shonld b.
| imposed On othct properly, when they subscribed
| Tor the Z ocS. lhcfc cau he no question Nor csn
they etcapt the etfttt OF that copteuet ,sllh the
state ~ the banks. IN NhCh ther hold stock sub
shutting Government securities declared 10 be cx.
euIpt from la1a,ton, Tor bonds alrrady nIei tfhfrh
! are liable to be aEscssed and taxed, But a. itey
have bot attempted 10 do 70 there is therefore, no
t,Iiet,iun on that Dofn The shares ri xtnct IN nv
State harks ,nust. urdet Their cl,artcrs hc bcId
la1} tn 1,Ip,fcn ,sf;Eot,t r.n1rt ,tsn ~ ~ e. ~
ihr nnnds they hnyr 5rnns itrt .v,,h ,ho sI;.a- ~ "
n ,hr rhzr1c;ar ~ .he =, r ~ sst ~
nr ,syrJ~e r,nr H.. ,nxs..s, ~ suEl GIPna'
it,rd iii H.. auGitnr md ,ne ,i: "o nuas Gcpos M
him for c,,rul.ttrn tho ,t -:. Is, ~. ~ atuu
mr. ScT,a.isa .nI Ae ~, LII ;, " tne Nauks,
thc,r rnniroj vpre tny.:t..a 'it " h,a Meaas .!
| frnn, ,s-o,Ior tha .tns ~ - .pnus CatApt
wnuid lii ~ i,shl,. tn - ,sao ~, ~ s'oeS