The New York herald., 1869-12-16

Dy wnIon the powers or faculties OF The states 70 IN
corporate banks are bjected TO laNanon, anu
wnich II malntalnable may annlhlate these powers.
No person questions the aunoriy OF 1nnslcss "
tau the property OF the banks ani OF MI o..aer & vo,
porate bodies OF state the same as ln.t ol lhur
ytduais Thes are artificial bodies representing the
asscclaIed pecunary means OIL real persons NbtoA
constilute tnelr business capital, and tle properly
thus invested is open and suo ect 10 TAXATION VIA
all tile property real and personal OF lne STATE a
tax upon tins property and whcn by the eons..tu- e
ton is 10 pe UNIFORM aoras ful scope 10 tue taAibs
powers tue federal government and Is cousla.Sh1
win the power OF the Sates 10 create tue pAhbs,
ana IN Judgment IS The ony subject ei ttNdsiua
by ms government 10 Wolch tneSe inst9tuNons arc
naele . ,,
the power 10 incorporate banSs was not snrgeh-
derei the federal government, out reserved To the
slaes and IL follows thal the consutul0h'tse pro-
Ieets them, or should protect them, iroW
any encroachment upon llis rlAhS Ms 70
the powers thus reserved the states are as SUI
preme before they entered mo ihe union anu ae
entied TO the unresrained exercise OF theui, Ihe
question "a to the taxation OF tae powers a9d acui-
ties belonging 20 governments Is not new IN thls
court. Tue bonds Of the federal government nave
been held TO be exempt from state taxation. Way
Because they were issued under ihe power ~ cue
constitution ~ borrow money, aud tue lax Wouiu
be tax upon the power; aad is there can pe no
limitation ~ the extent OF the IAN the power
10 borrow might be destroyed; 30 10 the
instance of the uniteu states notes or
legal tenders as they' are called, ISSUED
under q constructive power 10 issue bd5 OF cfeiit,
Is nc express power Is gwen VI tue CONSTITUTION they
are eXempt STATE taxation or Ike reason, az
ln toe case OF government bonds. And we learn
from the opinion OF tae Court Ia this case tuat "as
sep further Is taken. aud tnat Is, tat tue notes oi
the national banks are exempt as bills OF crsuit
ISSUED indirectly Dy tile government anu IL io'iowS
OF course from tlat the banAs used as ihstfu-
ments 10 issue and nut IN ejaculation taese hoGes are
also exempt. We are not complaining ol TINS. our
purpose show how important " Is 70 the proper
pro OF Tue reserved rights OF tue States that
taelr powers ana lrerosailges should DC exempt
from federal taxation ana nov iatii TO tnef sAlsS
eace II permitted.
II Is true tnat the present decision strikes only at
the power create banks; buI person can Ian 20
Inat the principle involved Affects the power u
create any otner description OF corporations, sueh
as railroads, turnp.kes, manufacturing companies
and Others Jnis taxation OF tne powers and lacul-
ties ol the Stale governments which are essential 10
Their sogereI1niies and To the eIDclcnt and inde-
pendent management anu administration OF tncr
Internal AFFAIRS tor the hrst time, advanced as an
attriuute OF icuera authority. IL ruus no support
confidence In the early hslorY or tue government
opinions OF tue iliustrious states men VINO
founded n. THESE statesmen scrupuioisiS abS,aihed
any encroacnment upon the reserved rights or
the States, ana within these limits sustained and
supported them as sovereign States
say nothing as 10 lne purpose or this heavy tax
OF sixteen per cent per aDnuD upon the banks,
ten oil which we cannot but regard as Imposed upon
the power OF the STATE TO create them, though tue
purpose Is scarcely concealed, III tue opinion OF the
court--namely 10 encourage the national banks.
while IT mas encouraged these banks has proved
We are Ut liberty 10 judge OF the purpose OF an act
ffou the consequences tlat has followed if II Is NOT
perhaps goins too lar to say tnat these consequences
Mere