The New York herald., 1869-01-19
UNITED STATES SUPREME COURT.

Government Certificates Of Indebtedness und
Treasury Notes Exempt from state Tax
afion-Decisions in the New York Bank
Tax Cases.
WASHINGTON, Jan. IS, 1862.
The People or the State or Neu York er rel. The
National Broad,oa1 Bank rs. Donne1v et al. ana
three other cdses.Thesc are appeals from Judgments
OF the Court OF Appeals Of the state Of New York.
The facts OF the controversy are briefly as foows:
On the Goth OF April, 1865, the Legislature Of New
York passed an act directing the Board OF Super
visors OF the county OF New York to refund to any
bank such an amount Of taxes paid In 1863 and 1864
as was imposed or levied In respect to any portion
OF capital stock invested In securities Of the United
States by law exempt from taxation. and for this
purpose TO cause to be issued county bonds for
the amount OF such claims, after they had been
audited and allowed BY the Board and approved by
the Mayor and CORPORATION Counsel. The claims
OF such character were audited and allowed and
approved, a. requred. but subsequently the
objection raised that such portion OF the capital
stock OF the banks taxed a. invested In certia-
Gates OF Indebtedness issued under the acts OF March
I and 10, 1891 or In Treasury notes OF the govern.
ment, were not exempt from State taxation, because
such certificates OF Indebtedness and United states
notes were not "sccurities OF the United states.v
This question was taken into the State courts ana
finally went 70 the Court OF Appeals, where Il was
held that the certificates and notes IN question were
not exempt. From that decision appeal was taken
Mr. Chief Justice Chase now delivered the opinion
or the court reversing the Judgment OF the Co1rt
OF Appeals, and holding that n IL clear that these
notes and certificates obligations OF the United
States There Is no solid distinction between GER
tincafcs pf Indebtedness Issued for money borrowed
aud certificates given directly 10 creditors in nay
ment OF their demands; and such certificates issued
as means Of executing constitutional powers Of the
government, other than OF borrowing money. are as
much beyond the control and limitation by the
states through taxation bonds or other ObiiQa-
ti0n9 issued Tor loans OF money. The principle OF
exemption Ia that the States cannot control the
stitutiona power for there II is supreme, snd can.
not tax Its obligations for payment OF money Issued
Tor purposes within that range Of powers, because
such taxation necessarily implies The assertion 0f
Gates OF Indebtedness In those cases are completely
within the protection OF this principle. The public
history OF the country and the acts OF Congress show
that they were issued TO creditors for supplies neces
sary TO tho governments In carrying on The recent
war for the preservation Of the country. They were
received Instead of money ~ time when full money
payment for Supplies was Impossible, and are az
much beyond the taxing power OF the states as the
operations Themselves Ia furtherance Of which
they were issued. As to the Treasury notes, the
question involved In the Csc Of the Bank OF New
York. the Court say, they bind the M tonal faith,
70 tho holders the payment sipnIntcd by the pledge
OF the national faith tho only ultimate security Of
all national obligations, Whatever form they may
and that In respect TO both notes and certificates
the Judgment OF the Court Of Appeals must be re-
verscd.
Decision Ia tho Girr ri VIII Case.
The Supreme Court today slso rendered dcci-
sion ia the case Of W. a. Cfard Va. the CITY Of
Philadelphia. This 10 the pnissc OF the Girard