The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-14

AZ any other property But in the case before az the
object OF taxation Is not the francnse OF lhe JAIN
but property created or contents made and issuea
under the franchise or power TO issue bank ollls.
railroad company, In the exercise OF its ooi pa,g
franchises Issues freight receipts piils oi tha,
and passenger tickets and II cannon oe ooup,eu "
the organization OF railroads Is quite as %
to the state as the organization OF banks; pus ~
hardly be questioned that these contracts o ,ne ~
pany are objects OF taxation within the powers -.
and not exempted BY any relation TO tne sthte "n
granted the charter OF the railroad ana IL seens
diflcut to distinguish the taxation OF notes issue
for circulation from the taxation Of these ram
contracts. Both descriptions Of cOntrasts ale nj
OF profit to the corporation winch issues .he as
both, as we think, may properly DO maue conh'ou
II is insisted however, that the tax in the case
before us u excessive, ana 80 excessive a. des,ray
cate purpose ON the part OF Congress W uestty
the franchise OF the bank, ana IL thereiors az,
the constitutional powers OF congress. lug n
answer to this Is that the Judicial cannot presoipe
to the legislative department OF the governmonns'
limitations the exercise OF acknowledged poMeS,
The power to tax may be exercised oppresSM,essg
upon persons, but the responsibility OF the LeRsa
ture Is not to the courts, but to the people "
whom Its members are elected; 80 that II par
ticular tax bears heavily upon cofpora-
ton or y class Of corporations 1t cannot tnere-
fore be pronounced contrary to the constitution.
But there Is another apswer which vndicstes
cannot be doubted that under the constitution the
power to provide circulation Of coin Is given TO Con-
gress and it is settled by the uniform practice OF the
government and by repeated decisions that Con-
gress may cOnstltutonallx authorize the emission OF
bills OF credit It is not important here TO decide
whether the quality OF legal tender In payment OF
debts can be c0nstitutionally important W these
bills but 1t IL enough to say that there can DO no
question of the power OF the government 10 emit
them TO make them receivable III payment OF debts
TO ITSELF TO 1T them for use by those who see nt to
use them in all the transactions OF commerce to
provide for their redemption IN coin or otherwise
and thus TO make them currency uniform In value
and description and convenient aud useful
for circulation These powers until recently, were
only partially and occasionally exercised. Lately.
ha Un haan al into fnII oalv
and Congress has undertaken to supply currency
Tor the entire country. The methods adopted for
in the rs Dart Of this oUpon IL noW eon,ss Of
CON- Of United States notes and Of the notes OF the
national banks. Both descriptions Of notes are
properly described as bills OF credit for both are
furnished by the government, both are issued on
the credit OF the government and the government is
responsible for the redemption Of BOTH primarily as
to the first description and alternately 10 the
second. When these bills shall be made convertible
into coin at the Will or the holder this currency VIII
as any mixed currency that can be devised.
Having thus, in the exercise OF undsputed consti-
tutlonal power, undertaken TO provide a currency
for the whole country II cannot be questioned that
Congress NAV constitutlonaly secure the benefit Of
1t TO tue public by appropriate legislation. To this
end Congress has denied the quality Of legal tender
to foreign coins, and mas provided by law against
the imposition OF counterfeit and base coin on the
community. TO the same end Congress may dis
money Of any notes not issued under its own au.
th0rtys Without this power, indeed, It's attempt 10
secure sound and uniform currency for the coon.
try must be futile Viewed In this light as well az
In the other light OF duty contracts or property
we cannot doubt the consututionality Of the tax
under consideration. The three questions certified
from the Circuit Court Of the District OF Maine must
therefore, be answered afIirmativey.
Mr.. Justice Nelson diasented and read an opinion
which was c0ncurred In by Mr.. Justice Davies IN
which, after noting the fact that there we've iour
STATE banks in existence at the time OF the adoption
Of the federal constitution, 1t Ia held thar II Is
competent for the states TO charter and es-
view has been three times distinctly affirmed
BY this court. 1t IS then said that the bills or notes
issued by State banks and put In circulation instead
OF being the properly OF the banks issuing them are
III fact but their Indebtedness and sucn they are
not liable to the tax imposed. The general govern
ment cannot tax the franchise nor the Indebtedness
OF these Institutions. The view Is taken that this
tax upon the issues Of tine banks IN question IS an
uDJustanie attempt 70 crush shem out Of existence.