Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1873-10-24
For the journal.
Solvent Credits and Money on De-
pOsit.

IL ISilttlIeCt tttty 10 peTlCIul as To the
listing of solvent credits and money on
edposit. The Board of County Commits
sioners are also charged by law with
the high duty of seeing that such taxa
bic property is listed, and handed over
to the sheriff by prescribed time,
now passed, to collect. 1t is an estab-
lished fact, OF much importance, that
not one dollar has beel. recorded in the
tax books, for collection, i'll New Han
over, as inspection of said books in the
hands of the sheriff will show. Itseems
to be established that some Township
Boards listed such property and some
did not. It is equally true that some
Of said assessors. if not all, were in
structed by an employe of the Board
Of County Commissioners, not to list
such taxable property. Who is res
p"ns.ble fer this grave dereiiction of
official duty III New Hanover, it will
Of course be fcr the proper legal tri-
bunai, to decide. That ID serious yio-
lation of law, has been committed and
that it graveiy involves veIy important
interests and rights, is evident to all.
The liabilities incurred by them who
are guilty OF this disregard OF an i'm
portant law of the Legislature, will be
ii question: for the consideration of the
proper official authorities, including
the ioeatc Treasurer, the Attor-
ney General, al 4 the Legislature,
soon to assemble. The Supreme Court
OF North Carolina decided in
June last or the very first Of
July that solvent credits and
money on deposit, as explained I'M
der Section OF the Machinery ac
n2ust bc EsfCd tsnti tic tG.ccs collected.
This gave abundant time for those who
prepared the tax books to observe this
requirement OF the Legislature and
the Supreme Court. But it was not
done. Are the edictS OF these highest
tribunals of the State to be thus disre-
garded by those officers OF the county
and State who have sworn to support
them Read below the decision OF
the Supreme Court on this grave
question, as rendered by Judge keade:
SUPREME COURT THAT THEY MAY DE
TAXED.
We collate important parts OF the
decision OF the Supreme Court of
North Carolina, rendered last Monday,
on the question whether solvent cred
it's can be taxed
The case was Ruffin VS.. the Commits
sioners Of Orange. The plaintiff
listed for taxation. ''$15, 900, money on
deposit The amount of tax was
5l62, and she asked to have the amount
stricken from her tax list; or, if {. S.
Treasury notes are exempt and Ma
tionnl ijank bills are not, then that $9l
shall be stricken from the list.
The Commissioners refused to alter
the list, and the plaintiff appealed to
the Superior Court, and that Court di-
rected the Commissioners to correct
the list by striking out S1G2, his Honor
holding that neither United States
Treasury notes nor National Bank bills
were subjected to taxation by the
States.
Wheeler that be SO or not, it Sc. IN
MT to he necessary to the decision of
the case, because it is plain that the
plaintiff had neither United States
Treasury notes nor National Bank
bills con hand" or "on deposit" It is
true she had deposited S15, ,OOO in bank,
but it was not special deposit, as q
package to be kept for her and return
ed in kind when called for, if so, the
money, the very money deposited
would have remained hers. But it was
a general deposit entered to her "cred-
It, MT rcturnable in kind, but ''pay-
able" to her order with ''interest." So
it would seem that she had no money
ut all and ought not to have listed any
Tie point most discussed at this bar
was, whether United States Treasury
notes and National Bank bills We're
liable to taxation by the State. And
although as we have seen, it is not
necessary to the decision of the
case, yet, as his Honor's iudg-
ment Was based upon it, and
as 1t is Il matter of general interest,
il may be proper that we should cx-
press "ur opinion upon it. 1t seemed
10 be settled by numerous cases in the
United States Supreme Court, cited
III plaintiffs brief, beginning with Nc
Culioch -. Bank Of Maryland, that
United States Treasury notes cannot
be taxed by the State, because they
are ti.e means used for the support and
administration OF the United States
Government And if IL State could
tax them, then unfricndly States
! would SO tax them as to destroy their
usofIIlIcss; anti III that way, and to
! tiiat extent, destroy the United
! States Government. And it is equally
! II settled that tie United States
! Government cannot tax any of the
| necessary means Use! to administer
/ the State government But whether
! 4 State can tax National Bank bills
! .Coins to lie a dehatabie question.
/ The ease cited against the power oi
| ti3c State is Fcazie Bank VS. Ecnno
| Wal, ;';}3. We 10 rot think that cas-,
supports the position. 1t is there de.
| c:dcd by Il divided court that Congress
may tax the circulation OF banks
| chartered by the State And that
although the tav WIS SO heavy-aboIt
| Is per ccnt.-as to destroy them. II
| IS not pretended that this tax could
have been imposed, If the bank had
! been cilartel ed for the use of the State,
| and as Il means of administering gov
crnmcut. But it is put upon the
| ground that they are corporations fol
| private profits. And as the power OF
| Congress to tax the circulation Of State
banks depends upon whether they are
for the use Of the State government Oh
for private profits; SO the power of the
State to tax the circulation of national
| banks depends upon whether they are
! for the United States Government ol
for private profit. It is true they are
authorized by Congress as currency
convenient and useful for circulation,
just as State Bank bills are authorized
| by the State. But in neither case have
they necessarily any connection with
the Government. The act oe Congress
authorizing National Banks imposed
a tax on their circulation of pei
cent, and surely that would not have
been If they had been regmdel ! as a
part of tie Government, as that
would have been the same as for the
Government to tax Itself. The truth
is that the United States Government
! has interests i'll National Banks. II
authorizes them in order to provide f;
currency, not for the Government, bu,
for the people. and it has the power tC
regulate and protect them. To this
end it provides for the redemption ol
Their notes, protects them from imposi
ton Of counterfeits, and from injuri
ous competition of State Banks by /