Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1878-04-04
From the Chicago Tribunc.
Taxation of Greenbacks.

w nave Deen repeatedly questioned
by correspondents whether there is
any law exempting greenbacks from
taxation. One correspondent writes
referring us to law of the United
States passed June 80, 1864, entitled
can Act 10 provide ways and means
for the support Of tie Government,
and for other purposes" The last
clause of Sec. / and all Of Sec. Is of
Said act read:
Sec. l. And all bonds, Treas
ury notes, and other obligations OF
the United States shall be exempt
from taxation by or under State or
municipal authority.
Sec. Is. That the words s.otliga-
ton or other security of the United
States" used in this act shall be held
to include and mean all bonds, cou-
pons, national currency, United States
notes, Treasury notes, fractional notes,
checks for money of authorized Off
GERS of the United States, certificates
of Indebtedness, certificates of depos.
it, stamps, and other representatives
OF value of whatever denomination,
which have been or may be issued
under any act of Congress-
The syllabus of the decision of the
Supreme Court of the United States
in the case Of Mitchell vs.. Board of
Commissioners of Leavenworth coun-
ty, Kansas, reported in lst Otto, is as
follows:
Where, for the purpose of eyading
the payment of a tax on his money on
deposit, which the law of State re.
CURED to be listed for taxation March
! in each year, party withdrew it
February % from a bank where it
was subject to his check, converted it
into notes of the United States, and
deposited them TO his general credit
March 8, and the State Court passed
decree dismissing the bill in equity
by him filed to restrain the collection
OF the tax thereon-held, that the de-
cree was correct, and that, although
such notes (greenbacks) aoere exempt
from taxation By or under State or mu.
nicipal authority, court of equity
would not use its extraordinary pow
ers to promote such a scheme devised
for the purpose of enabling party to
escape his proportionate share of the
burdens of taxation.
Chief Justice Waite delivered the
opinion of the Court in that case, and
said:
We think that the decision in this
case was correct United States
notes are exempt from taxation by or
under State or municipal authority;
but court Of equity will not know
ingly use its extraordinary powers to
promote any such scheme az THE
plaintiff devised to escape his proper
tionate share of the burdens of taxa
ton. His remedy, if he has any, is in
court of law. The decree is affirmed.
The Revised Statutes contain two
sections applicable to this question !:
SEC. 8, FOL. T All stocks, bonds,
Treasury notes, and other obligations
of the United States shall be exempt
from taxation by or under State or
municipal authority.
SEC. 5. The words obligations or
other security of the United States"
shall be held to mean all bonds, GER
tifcates of indebtedness, National
Bank currency, coupons, United States
notes, Treasury notes, fractional notes,
certificates of deposit, bills, checks or
drafts for money drawn by or upon
authorized officers Of the United
States, stamps, and other representa-
tives Of value, of whatever denomina-
tioH, which have been or may be Is.
sued under any act Of Congress.
All these authorities seem to be
conclusive that greenbacks are ex-
empt from all State and municipal
taxation.