The clarion. [volume] (Jackson, Miss.) 1883-1888, 1886-02-17

ttxes uu ier FHe act oi lgu=t q 1851, f.eJa beni
hsid as set-0.ls against tne -l4tSe having CLAIM
against the United states
Mr.. BAKKsDALE said
Mr.. SPEAKER Ii has been ascertaineC
and officially stated that there are money!
due by the Uuited States 20 certain States
"hica have been withheld 10 consequence
1i balance alleged 70 be due from thO-e
Stat-s 10 the General Government for
direct lakes under the act OF August =
1901. Mississippi j. one Of the States 10
"hieh there IL acknowledged Indebtedness
by the United States, and she, IN common
with the rest. ~ seeking the relief which the
pending bill will afford. The amount which
- shown % be due her by the report o.
flrst Comptroller Durham is ~ 1881.
Tins sum ~ due the state by ylrue ot acts
81 Congress passed March ], 1917, ana
September !, ls4l, providing that aud
per cent. OuzSulFtsJ ptoceed- of lands sold
within the ~i9- shall be paid TO The State
Tor Internal Improvement purpose.
Section 1866, Revised Statutes, say
that
no money shall be paid TO any person for his
compeustu % wh0is ~ arIear- o. the Unted .tates,
uufu he mas aouut-d ser aud paid into tne Tres
"fy ai rutn- Tor which he may bee liable.
First Comptroller Durham, IN his report
OF October 10, 1880, page IA, states thai
AtAff lNAlH etfAl1l kitE dttbAlH INK tAAttEl1 bi
tne Treasury have been applying the pro-
ceeds arising from the sale oi these iauds
10 the credit pl the State On her indebted
ness 10 the United States.
IL - clear that lhis II "a strained and i'm
proper construction The act Of 1861 OPP
crates ouly upon the property OF lndiyid-
ualS. The tax was imposed upon lands
within the geographical limits OF the State
by persons residing IN the State, and III
part by citizens OF other States. Moreover, &
the government, By dIscOutiuuing the col
lection of the tax, discharged the owner-
OF the property from liz payment and vir-
tuaily cancelled their Indebtedness. / will
cite the following order of the Secretary ol
the Treasury oil July 2S 1866:
TsE,sUEY bKPAKrHEsr, August 3, 1856.
StH section t4 0i an To pr"tect thegeycnue,
aud Tor other purposes, approved July z5. lSbo.
authrzer t4c secretary OF the Treasury ~ suspend
the collection, lu any ot the states hereafter de
crcd iu iusurrecttJn OF tho direct tax inipos by
aH art OF Congress passed August Q, i-6l until Jan
a ry /, SOS.
By virtue Of the authority conferred upon me by
this provision Of the law, hereby direct tie
pension OF the Election Oh the above mentioned
dir.citax iua "a the states hereafter in insurrection
1pu Rll pie tsc give The necessary Instructions 10
dlre.t-tIN commissioners
In connection with this subject have to request
your opinion ts @, b. neither the employ ment vi all
persons cnsasc4 ia Whatever capacity, Ia the col
leciIuu oi fhe direct TAX may properly and use
faiiy by su pended bespecliuliy yours,
HuGH Me- rULLoCH,-
Sserstaly u tie Lyeasary.
Hos. A ROLLINS
COMMITS tssia.s, Of Iqtesaal Rege,ye.
The policy indicated by thls order has
been continued up TO the present date.
But admiliing, for the sake Of argument
and for argument only, that these ''arrears"
still exist, the preien-i0n that the State II
re- ponsihie for the alleged delinquency Of
"persons" is wholly indelensible. Ii
would be "a reasonable to charge the State
win the arrears oi person who, in The
exercise OF trust under the govern
ment had iailed 10 pay over moneys be
longing to IL. The language of the law
shows that NJ was designed to operate,
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. IL Is
historical fact Jhat one OF the main OBJ
jects OF the convention TO frame a more
perfect union" than existed under the
Confederation, WAS To get rid OF the syslem
OF calling upon the Staie for revenue 10 sup
port the common government and tor this
reason the States delegated TO the United
States the power To enact measures operat-
lug directly upon the individual. Under
the Confederation each State was bound To
furnish it, quota Tor the maintenance of the
common ,verment. The plan was insult
fcieut. Mr.. Madison, whose conspicuous
part Ia the formation oil existing govern
ment is historical, explained the change OF
the system in the following language:
The change relating TO taxation may be regarded
the m rst mppit pitaut, and yet The present OOugres
have complete authority re,it,le o. Tue states
iuienuite supplies oi money fir the ommon defense
and general welfare the future Congress will
have 20 require them OF indirdadi Citizsas tFeder-
alist, forty chapterJ
Hence, with a view 10 enable the Gener-
al Government TO deal directly with the in.
dividual, il was provided in the Coustilu-
tion th L Congress should have power t.
lay aud collect taxes, duties, imposts, and
excuses, TO pay the debts and 10 provide
for the general welfIre--a sovereign power
which the States delegated To form "a
more perfect pnion" Nothing can be
added To the forcible exposition of this
subject by Mr.. Webster
The Constitution creates direct relations between
this Government and ftdtplfaais- IL has power te
tax individuals. The maintenance ot the tOnStttu
ton does depend upon the plighted faith OF tn
States states to support h. IL relies on tndi-
vi,itlaI dutv and obligation In the articles OF
federation the states did aake promises, bu in the
Constitution there ia nothing OF the KIND. II does
exa-t irom the state as plighted Faith TO
maintain it, eu the contrary, II makes ITS own
preservation depend individual duty and indi-
vldual obligation have always said that to obtain
direct lcgis alton over the people was al
ways prominent as a reason tor getting Hd Ol th~
confederate "a aud forming Constitution.
Under the uonte ierAtien Congress had only p 'wet
10 tde rcQuisti1us on states aud II the states de-
cltued compliance as they did, there was no RENE
dy but war The Constitution was adopted 10 avoid
this necessity. Ii was aIapted that tuere might be
4 Government which ,uld directly on individ-
uals without Borrowing aid from the state govern
ments fhis is As cl ar as light ITSELF
In 1862 Congress passed a supplemental
act superseding the act of 1861 rs TO the
Southern States. The Supreme Court has
decided that itcreated lien on the lands
10 Wsu., $50, and ii Wall, 55Sl. II II
is undeniable that a State can not be taxed
and was not intended TO be taxed, how can
il be held responsible Tor taxes levied upon
the property OF individuals?
But "a leave no ground whatever Ter the
occupancy Of those who maintain that the
SUN eertiiisd TO b. due the States by the
United States shCdld be set off by the
alleged arrears ef individuals, some OF
whom we're never residents thereof, and y
still larger number of whom have gone to
that bourn whence no traveller returns, II
is only necessary 10 adduce the following
conclusive reply OF the Secretary OF the
Treasury to the proposition OF the State ol
Texas to settle the taxes which had been
levied upon property within its eoun
daries:
TREASURY DEPARTMENT Dec 2, 1900
SIR. have 10 aeknowledye the receipt OF your
letter OF December "a, in which you ineiose cop!
OF au act OF the Legislature OF Texas assuming pay
nent u the uncoliected pot tion OF the direct YAK
due from Taxas under The P0yisiaus ot The law o.
June Z 1862 You ask for a statement showing the
amount collected and the shll due Tue iaw
unuer which this tax has been collected contain
no provision authorizing It's assumption by q stale
the per issory clause oi the act 81 August o 1851
n1t having bel re-enaeted in that OF June J, is"2
In the Ab-ence OF sueh provision this Department
would not he justified in ,gnixng such assuh p,
tioa la my annual report OF Dece"ber, 1850
recommended that sales under this law should D
suspeute~i autil the state interested had an opoor
tuniiy of assuming payment OF the tax, but thi
recon, IA ndation has only ben 50 lar carried GU
a. 10 authorize the suspension OF collections Tor
de6nits. time no provision Tor assuming the dep
hetnr contained 10 the law which gives aHthorit,
for such suspension i.
repiy in detail 10 that portion OF your letter ~hie
AIS for statemest OF collections, or 10 your sus
y stiou for the acceptance of Texas indempit
bonds In part payment
Il. McsULLocH,
Secretary Of fAs Treasury.
Hos. w. THsocKMoRToS,
Gersraer Qf Tends-
Treasury DEPARTNExr March IS, 1867.
- -, i, raeeiut Of YOUR letter OF Feb uary II