The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-06-25

whether the plaintiffs owning Natonal
bank shares and having no credits from
which to deduct their indebtedness, can
be permitted to deduct such Indebtedness
from the value OF their said shares.
1t will be observed that article oO6S per-
mits the parties to deduct from their
credits their entire Indebtedness and rem
der for taxation only the surplus OF credits
over their debts, and plaintiffs here not
having any money at interest or otner
debts due them from which to deduct their
Indebtedness contend that they are en-
titled to deduct same from the value OF
their said shares, and have shown that
their debts eoualed the full value OF their
shares.
1t seems clear that their shares OF stock
are not technically credits or money al
interest or In any sense debts due them,
but are simply the evidence OF title to the
specific interest owned by each in the
capital stock of the bank tRosenberg VS..
Weekes, 81 Tex. 5S5), and hence under
our law above quoted, technically plain
tlffs are not entitled TO have their debts
deducted from their bank shares, aud are
only entitled to It, II at all, under the
last clause OF article $3.50, IL such is the
construction which should be placed there
on or. under article 5219 OF the Revised
Statutes OF the United States, which IL
thus expressed:
Nothing herein shall prevent all the
shares in any association from being in
cluded In the valuation OF personal prop
erty OF the owner or holder of such shares
in assessing taxes imposed by authority OF
the State within which the assjt'a N is
located Subject only to the two
restrictions that the taxation shall not be
at a greater rate than is assessed upon
other moneyed capital in the hands OF in
diyidual citizens OF such State and that
the shares OF any National banking asso-
citation owned by non-resdents OF any
state shall be taxed in the city or town
where the bank is located and not else
where"
In long line Of decisions the supreme
court of the United States has held that
shares of National bank stock can not be
directly or indirectly taxed at greater
rate than other moneyed capital in the
hands OF individual citizens similarly en-
poyed or invested 10 that OF the capital or
National banks, nor can such other
"moneyed capital" when employed in a
similar way to that of National banks be
exempt by State law from any burden
{ without such exemption being ipso facto
/ granted to the holders of the shares or
National banks. That court, in Merean-
( tile National Bank OF New York VS.. Meyer,
etc. Cl21 U. s., p. 1881, states:
THE key to the proper Interpretation
I OF the act OF congress is It's policy and
purpose. The object Of the law was to
establish a system OF National banking In
stitutons In order to provide a uniform
and secure currency for the people and
to facilitate the operations of the treasury
OF tho United States. The capital OF each
( OF the banks in this system was TO be
furnished entirely by private individuals;
but for the protection OF the government,
and the people 1t was required that this
capital so far as it was the security for
ed 10,
the bonds OF the United States. These
bonds we're not subjects OF taxation; and
neither the banks themselves nor their
capital however invested. nor the ahares
OF stock therein held by individuals could
be taxed by the States In which they werC
located without the consent tf congress
being exempt from the power Of the States
I'm this respect because these banks were
means and agencies established Icy con
: gress in the execution of he bowsrs o
! the government OF the United States. |
was deemed consistent, however. witt
these National uses and otherwise eNpe'
dent, to grant to the states the authority
to tax them within the limits OF a rul'
prescribed by law, In fixing those limit
: 1t became necessary to prohibit the state
; from imposing such a burden as woulC
I prevent the capital of individuals from
freely seeking investment in institution
! which II was the express object of the Law
a to establish and promote. The buslnee
:. OF banking, including all the operation
u which distinguish IT, might be carried Of
. under State laws either by corporations o
: private persons, and capital in the torr
y OF money might be Invested and employee
- by individual citizens in many single ant
. separate operations forming substantial
principles OF the business of banking. .
, tax upon the money or individuals invest
- ed in the form OF shares OF stock In Ma
= tional banks would diminish their valu
: as an investment aud drive the capital s
, invested from this employment IL at tn
same time similar investments and simila
=. employments under tha authority of Stat
II laws were exempt from an equal burden
=, The main purpose, therefore, Of congres
n In fixing limits to State taxation and IN
yestments in the shares of National bank
n was to render II impossible for the stat
If in levying such . tax to create end fcste
an unequal and untrlendly competition b
t. fayoring institutions or individuals carry
Is ing on a similar business and operation
n and investments Of like character. tn
le language OF the act OF congress Is to /
read in the light Of this policy. Applyin
10 this rule of construction, we are led in III
u first place to consider the meaning Of tn
h. words "other moneyed capital as used
the statute The business
" banking us defined by law and custom cor
s. sists in the Issue of notes payable on d.
It mand intended to circulate as none
~ where the banks are banks OF issue,
D receiving deposits payable on demand,
discounting commercial paper, maxim
Or loans and dealing in negotiable securti,
A. issued by the government state and NJ
al tional and municipal and other corpora
al lions, These are the operations in whiC
the capital Invested in National banks
m employed, and 1t is the nature Of that en-
a ployment which constitutes It in the eye
OF this statute 'moneyed capital" Corpor,
r tons and individuals carrying on the
Is operations do como into competition wit
the business of National banks, and cap
or tai in the hands Of individuals thus Ell
&c ployed Is what Is intended to be describe
IS by the act OF congress, The tern
> OF the act OF congress therefore incluJ
NC shares Of stock or other interests ownt
ne by individuals in all enterprises In whiC
~ the capital employed in carrying on /
IN business Is money, where the object
., the business is the making OF profit by (
y, use as money. Tho moneyed capital thu
aSS employed is invested for that purpose
~ securities by way OF loans, discount
"a otherwise, which are from time 10 Tin
IA according to the rules of the business I,
ai duced again to money and re.Gyested.
es includes money in the hands OF individual
ss employed in similar way, invested
III loans or In securities for the payment