The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1867-05-04

assessing, collecting and applying taxes aie
separate and Independent acts, and must LIE
authorized by statute Neitler
power can be inferred or implied from the 9TH
TIL either is broken the chain is wanting; it
can De supplied only by the legislature. A mere
au'hority given to town or city, by statute to
assess tax, confers no authority to apply it;
'e must be special provision of law au-
'horizing the application as well as tbe assess.
era 20 ,,,'.,,y "ppiy the doctrine of implied pow
..,;.,' n'cipai corporations is to invest them
WIN legislative powers.
ae' oi congress requires that the yalua-
.ioh anu assessment shall be made bv the MN
mcipahty where the bank is located nothipo
more, nothing less; it makes no nrov;sio,,
whatever for the application of the tox
No inference or application is necess,rv 70
give effect to these plain provisions; the most
uulettered citizen cannot misunderstood them
When Congress is silent, why may not the leg
islature speak? The act of Congress not only
but requires State legislation be-
fore the State can exercise the right Of taxa
tion. Here is no enchanted ground upon which
the legislature may not tread, but the door IL
thrown wide open, and who shall forbid it to
enter therein? That it has authority to enact
the provisionsin question, unless prohibited by
Congress, is unquestioned; there being no Con
prohibition, there is no legislative
disability
The act of Congress, moreover, does ut as
sumo % confer the right to tax the shares of
national banks upon the State legislatures. but
recognizes that as an existing right, and pro-
ylcss Limitations upon its exercise. The Lam
gaage is nothing in this act shall be construed
% pretert all the shares sc. from being includ-
ed in the valuation &c. and nothing in this act
sha" exempt tho real estate Sc" "from State,
county and municipal taxes &C." These Imi-
tations upon State authority, as has been be-
fore observed, have exclusive reference to pro-
tecting this kind property from higher rate
Of taxation than that imposed upon similar
property by the local authorities. This guard
ed language of the act is in harmony with the
well established doctrine that Congress, un-
der the Constitution, has no power to confer
the sovereign right of taxation upon a State;
nor is it competent for State to receive the
grant of such powers. The legislative powers,
exclusively granted to Congress under the
Constitution, are incapable of being delegated
to the States.
b As general principle, the power OF taxation
under the Constitution is concurrent power.
In respect, however, to the subject matter un-
der consideration, Congress by reason of its
paramount authority, might undoubtedly ex-
clude the States from the right of taxation.--
But as Congress. has withheld the exercise of
its right of taxation, the states are left free to
exercise their concurrent rights within the
constitutional limitations imposed by Congress
What constitutional limitations, under these
can Congress impose upon the
right of the states to tax national bank
shares? Can it provide any other lin
tations or restrictions upon State authority in
this respect, than such as are necessary to
guard the subject matter from excessive and
unequal taxation? Is not the right TO apply
taxes a necessary incident of the right to lay
them? What is the right of taxation worth, il
a power foreign to the tax-imposing authority
can designate the localities exclusively enti-
tied to the benefit of the tax levied? If Con-
gress has authority to make such designation,
may it not also determine the objects and pur-
poses to which such taxes SHALL be applied, and
the mode of their collection and disburse-
ment?
May il not require that all the taxes thus
raised from this source in State, shall be ap-
piled for the use and benefit of the Capital of
such State, or be expended in building rail-
roads, digging canals, or for the purposes of ed
ucation? What would thus become of the
freedom, not to say the right of legislation it.
self, in the State Legislatures? VIII it be pre-
III kba+. tha of tJo III
titled to a monopoly Of the benefits OF such
taxation is necessary to guard the shares of
national banks against excessive and unequal
taxation? If not, and the act of Congress es-
tablished such distribution of benefits, is it
not, in this respect void for unconstitutionali-
ty9 aai-
Fortunately the legislation of Congress up
on this subject is liable to no such objections,
and is beset with no such difficulties; all its re-
may be literally complied with,
without adopting construction involving
such grave considerations
The view I have taken gives effect both to
the act of Congress and the enabling act of tho
and is in harmony with the pur-
pose Of Congress in passing it, ana with pub
lie policy. 1t was the duty Of Congress to pro-
tect the corporations of its own creation from
unequal burdens.
This duty by no means required it to i'm
pose the same inequalities upon others which
it sought to save the objects of its own care
from. On the contrary, it was legislating up
on subject in respect to which every citizen
of the republic might be expected to challenge
the strictest impartiality, and, so far from hay
fn rafnua LaI
motive to grant compliance Herewith No
reason exists why all the taxes on the shares
of national banks enure exclusively to the
benefit of the town or city where they are To-
Gated, when part of the shareholders reside
in other places.
The appeal to subscribe to the national loan,
made by the government, indiscriminately to
city and town, millionaires aud men of mod
crate means, was responded to from all quar-
ters, and by all classes of citizens, with an
alacrity and unanimity unparalleled in the
worlds history. A like appeal was subse-
quently made to invest government securities
in national banks, with like success. Good
faith toward these patriotic citizens, and re-
spect for the hallowed memories that cluster
around their efforts would seem to require
that the taxes imposed upon the money thus
loaned and invested, should accrue, as far as
may be, to the advantage of the taxpayers and
the places of their residence.
1t is plain, however, that different con-
struction of the act of Congress practically
excludes those of this class who reside in the
rural districts and smaller towns from all par
ticipation in such benefits, as national banks
are located in the larger towns and cities,
where capital is most abundant, and revenue
from this source is least needed to defray mu-
nicipal expenses.
The abstraction of SO large portion of the
$500, 600 900 invested in national banks from
the valuation of the suburban towns, and it's
in the great business centres of
the country, cannot but be a serious grievance
to those shareholders and the municipalities
where they reside. 1t is not difficult to under
stand the effect such discrimination would
have had upon the public credit, if it had been
coupled with the appeal for government re-
lief. tr--++'
1t is scarcely possible that these consldera-
tions should have escaped the attention OF
Congress while legislating upon this subject,
or that il should have failed to provide against
such inequality, either from accident, inadver-
tence or design
am unable to discover any provisions in
the enabling act which conflict with any ex-
isting law OF Congress. Its aim, purpose and
effect are to enable the State to avail itself of