The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1886-02-13

Ia support Of the bill 10 prevent the unpaid war
taxes under the act OF August 3, 1851 f,Oin being
held ~ set-Uns against the states having claims
against Tho United States
Mr.. BAKKsoALE said
Mr. SPEAKER Ii has been ascertained
and officially stated that there are moneys
due by the United States TO certain States
which have been withheld Ia consequence
OF balances alleged to be due from those
States 10 She Gvne-al Government for
direct taxes under the act OF August 2,
1861, Mississippi il one Of the States To
which there is acknowledged indebtedness
by the United States, aud she, in common
with the rest, is seeking the relief winch Tile
pending bill will Afford. The amount which
~ shown 10 be due her by the report OF
First Comptroller Durham Is $4l, ABB 81.
rhis sum Is due the State by virtue OF acts
OF Congress passed March |, 1917, ana
September 4, 1884, providing that and 5
per cent, on the net proceeds Of lands sold
within the State shall be paid TO the State
for internal improvement purposes.
Section 1865, Revised Statutes, says
that
No money shall be paid to any person for his
compensate N who Is IN arIears To the United states
a. =
uTy all sums lot which he may be liable.
First Comptroller Durham, in his report
OF October IL, 1885, psge A. states that
under this section the accounting officers OF
the Treasury have been applying the pro.
ceeds arising from the sale Of these lands
to the credit Of the State on her indebted.
ness to the United States.
Ii is clear that this Isa strained and inn
proper construction. The act Of 1861 op-
crates only upon the property Of individ-
uals. The Tax Was imposed upon lands
within the geographical limits oil the State
10y persons residing in the State, and in
part by citizens Of other States. Moreover,
the Government, by disseminating the col
lection of the tax, discharged the owners
OF the property from its payment and vir-
tually cancelled their Indebtedness. | will
c,te the following order of the Secretary Of
the Treasury oil July Is, 1866;
raR.suRY DKPAkrNEsr, August 8, 1866.
| sra; Section u Of an TO protect the revenue,
and Tor other purposes approved July Is 1866,
authrzes tue secretary OF the Treasury TO suspend
the collection Ia auy OF the states hereafter de
Cldred in Instruction, OF the direct TAX ip0s by
an act OF Congress passed August 8, lei until Jan
uAry |, SOS
| By virtue of the authority conferred upon ne by
this provision Of the law, hereby direct the sus-
pension OF the G lection OF the above mentioned
You will pelse give the Necessary Instructions 10
direVt-taS commissioners.
In connection with this subject have TO req lest
| your opinion rs 10 neither the employ ment OF all
pc rsons engaged, In whatever capacity In the col,
| lection OF the direct tax may not properly and use
fully be 81 pended. Respectfully yours,
HuGH Nc uLLoCH,
Secretary q The Treasury.
Hon n A. ROLLINS.
C0NmGsionsr Of Internal Rerehus,
The policy indicated by this order has
been continued up to the present date.
But admitting, for the sake Of argument,
and for argument only, that these arrears"
still exist, the prelen~iOn that the State il
responsible for the alleged delinquency Of
persons is wholly indefensible, Il,
would be as reasonable to charge the State
with the arrears Of a person who, in the
exercise of a trust under the govern
ment, had failed to pay over moneys be-
longing to IT, The language of the law
shows that it was designed to operste,
not upon the State, but upon the
person In the collection Of taxes
the United States deals with the
| individual and not with the State. Ii is a
historical fact that one OF the main oh
! iecis OF the convention 60 frame more
perfect union" than existed under the
Confederation, was to get rid OF the system
ofcalling upon the State for revenue to sup
port the common government, aud for this
reason the States delegated TO the United
States the power To enact measures operat.
ing directly upon the individual. Under
the Confederation each State WAS bound tC
furnish its quota Tor the maintenance II tn,
common z verment. The plan was Insult
icient, Mr.. Madison, whose cunspicuon
part in the formation of existing govern
ment is historical, explained the change o
the system in the following language;
The change relating TO taxation may be regarded
as the mos, Mpoi tat, aud yet The present Congress
have ,Scumplee authority 10 require OF the State
indehnltes supplies OF money hir the ommon d, ieas
and general welfare the future Congress vii
have TO require them OF iait sdsnl ctiiseRs (Feder
alist, forty nth chaPter.)
Hence, with view TO enable the Gener
al Government TO deal directly with the in
dividual, it was provided in the Coneti,u
! ton tn d Congress should have power I,
Law aud collect taxes, duties, imposts, anC
excuses, to pay the debts aud to provid,
for the general welfare-a sovereign powei