The Cadiz sentinel. [volume] (Cadiz, Ohio) 1864-1911, 1867-12-04
IMPORTANT LEGAL DECISION.
Greeabaehs Not Liable 10 raxa.ion

IMPORTANT LEGAL DECISION.
Greenbacks Not liable 20 Taxation
The same law which exempts United
States Bonds from State and municipal tax
alton also exempts GreenbackS The mat
ter has been brought before the Courts of
Cincinnati, by the publishers of the Cin>
cinnati Enquirer, and the following is its
result:
SUPERIOR COURT,
GREENBACKs NOT TTAXABLE-OPINIoN OF
JUDGE SToRER -Earan Il Mclean VS. Miles
Greenwood. is an action to restrain
the Treasurer of Hamilton County from
collecting taxes on $50, 900 in greenbacks.-
The following opinion was delivered in de-
Gliding upon defendants demurrer to the
petition. After stating the case the Court
said:
There are two points taken to sustain the
demurrer. The first is that the petition is
insufficient, as it is not stated under any
particular statute; OF that these notes were
issued under a particular section. This
point don't think of any value for the
demurrer.
The other point Is the important one, and
gives character to the whole case. Upon
looking into the matter | find that early in
the year 1861, on the 18th day of July, the
Congress of the United States inaugurated
a system by which the wants of the loyal
States were intended to be supplied, and
! the means obtained to clrry on the extern
| sive military operations in which the coun-
| try was engaged. By that statute bonds
were authorized to be issued, and Treasury
notes were authorized. Both these forms
of Indebtedness bore interest. In the same
year, on the 5th of August, another statute
was passed which authorized an addition to
these two classes of Government obliga-
| tions; that there should issue from the
| Treasury Department notes which were de-
nominated demand notes. On the 25th of
February, 1862. another statute was passed
entitled an act to authorize an additional
issue of United States notes On the lth
day of July, of the same year. and on the
Sd day of March, 1868, another law was
passed in relation to the same matter: to
raise means fer the support of the Govern
ernment an addition al authority is given to
issue more notes, payable on demand, and
in which we, for the first time find this
clause: land all the bonds. Treasury notes,
&C., &C., shall be exempt from taxation by
State and municipal authority.
| Here is an express provision Of Congress
attaching not only to bonds, but to Treasury
notes and demand notes On the 18th of
July, 1863, a joint resolution was passed,
by which the Secretary Of the Treasury was
authorized to issue notes ON the Treasury Of
| thefUnited States. s. aH all &. .
On the 30th of June, 1864. another act
| nh ha lty n
which we need refer, entitled an ect to pro-
vide means for the support OF the Govern
ment. BY this law an additional amount Of
demand notes is authorized to be issued,
and in the thirteenth section it is said the
words obligations and other securities of
the United States shall be held to include
all bonds, coupons, Treasury notes. demand
notes, fractional currency, checks for money
authorized by the Treasury of the United
States, &c. ..s. .. a-s.r'r VIE 'i
All these statutes must be construed in
para m,ate,1a. The great purposes for
which these notes were issued can only be
gathered from comparison of all the
statutes. The object was to give credit to
the bonds and Treasury notes of the Gov
ernment. a. f,.....yl,.
In the first place these notes are legal
tender, and in the next place they are de-
mand notes, and are obligations binding up
on the Government, and in two Of these
statutes--one in express terms, and the
other by implication--we find they are ex.
empt from taxation by State or municipal
authority. 1t seems the spirit as well as
the letter of the law, as we gather them
from these several statutes, leave us but
the one result: that it was the intention of
those who enacted these laws TO EXEMPT
from taxation, not only tho bonds of the
United States but the Treasury notes and
the demand notes. With the policy Of this
| have nothing to do. But, may be per,
mitted to say, | cannot understand with
whaf propriety Treasury notes, payable on
demand, can be exempted from taxation,
when gold and silver issued by the Govern
ment, and declared legal tender, are not
There is a distinction made, however. |
find the law plain upon this point, and it is
not for me to inquire into, its POLICY If
there was any reasonable doubt as to the
law, anything to which l could refer, to
change the result, | would decide differ,
emily; but the law is express and plain.
give this opinion under the supposition
that the notes are in the possession of the
plaintiffs and not deposited in bank, for in
the latter case they would simply be so
much moneyin bank, and taxable.
The demurrer must be ovcrruled. Mr..
Scarborough asked aud obtained leave to
| answer in five davs