Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1870-02-24
RIGHT TO PAY TAXES IN tLAimn
AGAINeT The CIry-PLAN or
TAXATT0N.

TAXAIIONs
The question is much mooted whether
the city can be compelled to receive, IN
payment Of taxes, scrip, warrapu,
coupons or other debts owing by the
city.
The question is neither new nor un-
settled in The courts. The general rule
ia that neither the State Government
nor any Of its subordinate branches, such
as counties and incorporated cities, can
be compelled to receive, in payment OF
taxes, anything but money. Debts
owing BY the State, county or city can
mot be set off against taxes, nor can the
State, county or city be compelled to re-
.eeiye is debts in payment of taxes.
Such "a the rule. Exceptions exist, as
in the case Of the Bank of Tennessee
currency; and the city warrants issued
in the form of currency during the may
orally Of Mr.. LoA and, under the Act of
November "a, 1866, chapter 8, sub-sec-
tion of section 8. These exceptions
are founded upon contract, entered into
between the State er city, aud the holders
of the currency or warrants.
In the case Of The currency Of the Bark
OF Tennessee, The sistpte which created
and chartered the Bank of Tennessee.
ENACTED that the currency isssed by the
Bank should be receivable in payment
of all public daes. And so the statute
which authorized the atty to issue the
treasury. warrants, enacted that they
"shall be receivable for all taxes, IL
censes, fues and forfeitures, and all
debts due the city" OF these warrants,
the statute authorized the city, "by Or
dinance, to issue warrants to an amount
not exceeding .one-hslf the revenue OF
the preceding year, nor exceeding
$1,000 in any one year. for the pur-
pose of paying ledger balances and out
standing city warrants, and to pay the
current expenses OF the city" Under
this staiaie the city caused to be pre-
pared warrants in form and appearance
of bank notes, and pat few 10 circula-
ton. The further issuance Of them was
stopped by the act of Congress which
imposed heavy tax upon oil such issues
of paper currency. A small amount
only of these warrants is said to be now
outstanding, not far from $500
Upon this statute is understood 10
rest the validity Of city scrip in the
shape of warrants, of which the amount
now outstanding is reported and believed
to be $9s,449. 1t is a very grave ques-
ton whether municipal corporation has
the power, without express statutory
authority, to issue paper Of the kind Of
legal validity.
The general rule being as stated shove,
and the exceptions stated, 1t appears
that the utmost extent to which the city
can be compiled to receive its liabilities
in discharge Of taxes is little short Of
500, oo0-ssy warrants and scrip $685.
AZ, aud greenbsck scrip S54i.
There Il. then, little obstacle in the
wsy Of changing the practice as to the
funds receivable 10 discharge Of tsxe',
aud returning TO the policy Of collecting
taxes in money only. Ought the change
10 BE- made and The cash policy adopted
The reasons in favor Of ssoh policy
are very cogenL They enable the city 10
pay iis expenses at cssh prices. No city
or iudigisaai psrson eau boy necessary
supplies or service at essh prices Sho
xvs in bic oEn pspsr. which can be
ss inis cssh only By sale on the
or 60 brokers'. The best nan in