Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-07-29
VOL 81 NO 1877

Ties are reported atfifty-fOur cents on the
dollar; rather an unfayOrable time 10
pat IS, 10000 000 Of State bonds on the
/ market. But, like all schemes for mort
gaging the property and ensiaying the
people OF the State, it may look well on
paper The railroad schemes under
which the people are now being ground
as between the upper and neither mill
stones, locked well on paper, and the
people, on rather members OF the legisla-
turs, We're duped, and the people en-
thrailed. The following is an extract
from the eOmptroller's letter:
al said that il was my purpose to re-
commend to the next legisia-
ture, as a measure Of revenue,
the Te-establishment OF the bank Of
Tennessee, with branches suitably To-
Gated in the three different divisions Of
the State. The first, and, in my Opin-
ion, the only objection which can be
urged against this measure, is the provi-
sion in the act of congress which i'm
poses penalty Of ten per cent. on the
circulation of all other than national
banks. That this provision, enacted
as war-measure to sustain the credit OF
the Federal government while the war
was flagrant, will now be declared un-
constitutional, / cannot doubt. Such 8
provision, under our constitution aud
government, cannot be enforced in times
Of peace, against an ndividual--certain-
ly not against a State.u
And the following is an extract from
a lengthy editorial in the Union and
american, containing the cOmptroller's
letter:
''Fhere is but one apparent obstacle to
the revival of our Old State bank. 1t is
section of Federal revenue law, which
enscts 'that every national banking as
ISOLATION, State bank or State banking
association, shall pay a lax Of ten per
centum on the amount of notes Of any
State bank or State banking association,
paid out by Them
"This enactment is a mere uullity. 1t
has never been tested in the courts, and
could not stand a moment. 1t occurs in
an act 'tO provide internal revenue to
support the government and pay inter-
est on the public debt AS matter of
fact, no revenue is received from this
source. 1t is not productive tax, but
pr0hibitOry one"
The comptroller thinks the ten per
cent. tax upon State bsnk-nOtes was en-
acted by congress as a war-measure, to
sustain the credit of the Federal govern
ment, when the war wss fagrant, will
nov be declared, unconstitutional, cannot
be doubted. The editors of the
Union and american say: ''This
enactment is a mere nullity. II has
never been tested in the courts, and
could not stand a moment" Now, to
the law and the testimony. Act OF
congress July u, 1866, provides that
" Every national banking association,
State bank, or State banking assOcia-
ton, shall pay tax Of ten per cent. on /
the amount OF notes Of any person,
State bank, or State banking RssOcia-
ton used for circulation and paid out by
them, after the first day OF August,
1856; and such tax shall be assessed and |
paid in such manner as shall be pre-
5cribed by the commissioner Of internal I
revenue" This act was not passed as a /
war measure to sustain the credit of the /
Federal government; il was passed more /
than year afto- the close of the war. !
This act was before the United States /
supreme court at its December term, /
1869. (See Wallace's Reports, pages Z
in the case Of VeaZie bauk rs. I
FenDO) ef-Justice Chase delivered /
the opinion OF the court, in which he /
said:
Having thus, in the exercise Of un- /
grsss undertaken to provide a currency
for the whole country, it cannot be ques-
TONED that congress may, constitution
a!.y, secure the benefit OF it 10 the psO-
pie 5y appropriate legislation. To this
enu congress has denied the quality Of
Ieesl-tenders 10 foreign coins, and has
provided 10y law against imposition OF
counterfeit aud base coin on the com
munitv. 70 the same end congress may
restrain, by suitable euactments, the
as money any notes not is
sued under its own authority. Without
this power, indeed, its attempts to Sc
cure 2 sound and uniform currency for
the country must be futile.
"Viewed IN this light, as well as in
the other light of duty on contracts or
property, we cannot doubt the cOnstitu-
tiOnality of the tax under cOnsidera-
tion."
I do not propose to discuss the poll
cy or the pT0pTiety Of the contemplated
Recommendation of the comptroller, as
fOreshadOwed in his letter to you, but
merely to call attention to some misap-
prehension under which he and the ed
itor of the Union are labOring. Were
in q position to recommend or act upon
the subject Of currency and finance,
would favor the policy of the United
States government, exchanging its own
treasury notes for all the outstanding
national bauk-notes in circulation, and
retain a sufficient amount of the United
States bonds deposited with the treas
urer by the national banks, for the re-
demption of their notes, and surrender
the balance of bonds over and above the
amount of their notes redeemed by the
government, to the respective hanks by
which they were deposited. Repeal the
national banking laws, cancel and de-
stToy the bonds retained for the national
bank-notes. Thus get clear of that
amount of debt and its au-
nual interest, and resume sDecle pay
ment as soon as possible. Let every
person or association who has capital
and credit have bank Of deposit, ex-
change and discount, but no corporate
powers, nor power to issue notes to cir
culate as money.
Corporations are the mOnarchs Of the
United States. II they 90 wrong, are
not smenable to the law. Public debts
are the only entails in this country.
Respectfully, GEO. W. JONES.
HnwwN