The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1892-07-23

by scrupulously guarding the rights vi 'he
States from Federal encroachment.
The authority of Congress to tax the
property of the banks and of all other cor
porate bodies the same as that OF indlvld-
uals has never been questioned. But can
it be fairly maintained that there is any
such deposit of authority in Congress which
would Justify it in fostering monopoly oil
its own creation by taxing out OF existence
A corporate body chartered by State =!
Admit the correctness of the principle by
which it is sought to justify the imposition
of this tax, and you will find but little
difficulty in applying it to ''any other de-
scription of corporations, such as railroads,
turnpikes. manufacturing companies, and
others.
The dissenting opinion Nelson and
Davis, judges, concurring) in the case OF
The Veazie Bank VS.. Fenno, heretofore
referred to, says:
.sIhe imposition upon the banks cannot be
upheld as a tax upon property, neither couiu
it have been so intended. tits simply mode
Inv which the powers or faculties of the States
to incorporate banks are subjected to taxa
ton, and which, if maintainable, may annihl-
late those powers.
And further:
This taxation of the powers and faculties
of the State governments which are essential
to their sovereignty and to the efficient and
| independent management and administration
| of their internal affairs, is, for the first tme
advanced as an attribute of Federal author
! ity. it finds no support or countenanee IN
| the early history of the Government or IN
the opinions of the illHstrious statesmen VINO
founded it. These statesmen scrupulousiy
abstained from any encroachment upon, the
reserved rights of the States; and within these
limits sustained and supported them as soVer'
eign States. We say nothing as to the pur-
nose of this heavy tax of some IL per cent.
upon the banks, ten of which we cannot but
regard AS imposed upon the power OF the
States 10 create them. Indeed, the purpose
| is scarcely concealed, in the opinion OF the
court, namely, to encourage the national
hanks. 1t is sufficient to add that the burden
of the tax, while it has encouraged these
banks, has proved fatal to those of the States
and if we are at liberty to judge Of the pur-
nose of an act from the consequences that
| have followed it ia not, perpans, going too
far to say that these consequences were IN
tended.
DOES NOT SOUND POLICY CLEARLY INDl-
CATE THE REPEAL OF THIS TAX?
Perhaps no subject has of late occupied
larger space in the public mind than that
of the currency; a subject upon which
neither Of the great political parties of the
country has been able to entirely unite Its
followers, and which has caused the pro-
duction of more nostrums for the imme
date and complete relief of the country;
for restoring confidence and awakening the
slumberiug looms Of prosperity than any
other question which has claimed the at
tention of the American people since the
war. Arrayed upon the one side are the
friends of contraction; upon the other the
advocates of imitation; while upon mid
die ground are found those who believe IN
the maxims, "Ia medic tutissinluS iJis.
When contraction was supposed to be
the policy of the Administration, despair
took the place of confidence and bankruptcy
seemed the impending fate of large pro-
portion of the most important business
interests of the country, while on the other
hand initiation produced absolute want OF
faith in the integrity of every 'promise to
pay which the Government had issued
and of every obligation which it had ere
ated. so that to avoid Scylla on the one
hand and Charybdis on the other has been
the effort Of those who believe "that you
will go safest in middle course.
The natural cry of the starving Is for
bread; equally so is the demand Of Il COM
munity in financial distress for more money;
but it is a mistaken theory to suppose that
imitation will afford any such relief
Flood the country with as large volume
of national currency as the warmest advo-
cate of imitation may demand and behold
the consequence Those Localities most
sadly Impoverished and most sOrely in need,
from the consequences Of the war, will
never have realized the difference, for the
reason that the laws of trade, by which
capital is regulated, are not subject to the
within aud caprice of legislative enactment,
but pursue their owp selfish purposes to
their legitimate end Capital seeking en-
ployment does not tend to those districts
wherein want and despair sit staring each
other in the face, but as naturally gravi-
tates to the business centers, where it will
Weld the best returns, as the water flows
from the hillside to join the ripping cur
rent as it glides onward to the great ocean.
This is true in larger sense Of gold and
silver coiR than Of the national currency;
but it is sufficiently true of the paper money
issued by or with the sanction Of the Fed
eral Government to cause an inquiry as to
the remedy to be applied to localize and
RESTRAIN within prescribed limits, currency
which will al least supply the wants of the
community for which it is intended. Will
not simple act of justice to the State
banks, by reducing the tax imposed upon
them to an amount equal to that paid by
the national banks, have the effect Of
bringing into closer harmony the State and
Federal Governments and Of increasing
the volume of Il certain character of cur
rency which will be essentially local in its
circulation, for the reason that it is wanting
in the important attributes necessary to
give it an extended recognition; it will not
be legal tender and it, circulation cannot
be made coerciye. Its usefulness will
therefore be made to depend entirely upon
the confidence which, with prudent organ
+ ization and careful management, the State
banks may be enabled to create for them
selves in the communities in which they
are located. But however great that con.
fidence may be, it is not at all likely that
such banks can be brought into hurtful
composition with the national banks, and
there is every reason to suppose that they
would work tremendously together in the
effort to supply the needs Of local and inter-
state trade.
The great objection urged against the
old State-bank circulation that it was moi
suitable for interstate commerce and often
; times subjected the holder to damaging