Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1869-01-29

TREASURY NOTEs NOT TAXABLE. DECISION %
THE SUPREME COURT.-We have announced the
fact that the United States had decided tha,
greenbacks and certificates Of Indebtedness sre
not taxable The particulars OF the ease are
a. follows
On the 3Oth OF April, 1856, the Legislature
Of New York passed an act directing the Boarl
Of Supervisors Of the County Of New York to rr-
fund 10 any bank such an amount Of taxes paid
in 1868 and 1864, as WIS imposed or levied in
respect 10 any portion Of capital stock invested
in securities Of the United States by law exempt
from taxation, and for this purpose TO cause 10
be issued county bonds for the amount % such
claims, after they had been audited and allowed
by the Board and approved by the Mayor and
CORPORATION Counsel The claims Of such char
acter we're audited, and allowed and approved,
as required; but subsequently the objection was
raised that such portion Of the capital stock Of
the banks taxed as was invested in certificates OF
Indebtedness issued under the acts of March l
and 10 1862 or in Treasury notes Of the Gov
ernment were not exempt from State taxation.
because such certificates Of Indebtedness and
United States notes were not SECURITIES Of the
United States This question taken into
the State Courts, and finally went to the Court
of Appeals, where il was held that thecertihcates
upon notes in question were not exempt. Prom
that decision appeal was taken to the ;. Supreme
Court Mr.. Chief Justice Chase delivered the
opinion of the Court, reversing the Judgment Of
the Court Of Appeals, and holding that it Is
clear that these notes and eertihcates are obhga-
tons Of the United States.
There is no solid distinction between certih-
Gates q Indebtedness issued for money borrowed
and certificates given directly 10 creditors IN
pavment Of their demands; and such certificates
issued as a means Of executing constitutional
powers Of the Government, other than of bor-
rowing money, are As much beyond the control
and limitation by the States through taxation A.
bonds or other obligations issued for loans OF
money The principle Of exemption / that the
States cannot control the National Government
within the sphere Of it, constitutional power. fer
there il is supreme, and cannot tax It's oblga-
tions for payment Of money issued for purposes
within that range Of powers, because such taxa-
t;on necessarily implies the assertion Of the right
Of exercise Of such control. The certificates Of
Indebtedness in these cases are completely within
the protection Of this principle. The public his
tory Of the country and the acts Of Congress
show that they were issued to creditors for sup
plies necessary to the Government, in carrying
on the recent war for the preservation OF the
country. They were received instead of money
at a time when full money payment for supplies
was impossible, and are as much beyond the tax
ing poger Of the States as the operations them
selves, in furtherance Of which they were issuei
As to the Treasury notes, the question involved
in the case of the Bank of New York, the Court
say, they bind the national faith, and are, there
fore, strictly securities. They secure to the hold
ers the payment stipulated by the pledge Of the
national faith. the only ultimate security Of all
national obligations, whatever form they may
assume. The conclusion is that the notes are ex
empt, and that in respect to both the notes and
certificates, the judgment of the Court Of Ap-
peas must be reversed