The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1912-11-28
is On TRAIL OF
GRfENBACKS
RIG HMoND. vA.-special.-l

Gold ana silver SeruuvattS repre-
sent gold or silver dollars in the treas
ury. Treasury notes. or greenbacks
DO not represent gold or silver in the
treasury. They are promises to pay.
and though greenDack-to use the
words engraved upon it's a legal
tender at its face value for all debts,
public and private it is not receiv-
Able-to quote again-for duties on
imports and interest on the public
debt"
In the matter of taxing these green
backs those who would naturally be
supposed 10 know have in many in
stances expressed grave doubts.
Section STO1 of the United States
Revised Statutes, passed In 1862. is
as follows:
'All stocks, bonds. treasury notes
and other obligations OF the United
States shall be exempt from taxation
by or under State or municipal or
local authority"
Regarding these notes, Section
1888 Gu. 5. r. s. says:
United States notes (treasury
notes) shall be lawful money and a
legal tender in payment Of all debts.
public and private, within the United
States. except for duties on imports
(customs) and interest on the public
debt"
Act Repealed.
But on August Is, 1894. Congress
passed another act placing green back $
on the taxable list. the text of tn e
act being as follows:
BE it enacted, ETC., That cfrcu-
laung notes of national banking
aSSo[ iatiOns and United States
legal tender notes and other notes
and certificates OF the United
States payable on demand and cir
Culating or intended to circulate
as currency and gold, silver or
other coin shall be subject to tax
alton rs money on hand or on de-
post under the laws of any State
or Territory; provided, that any
such taxation shall be exercises I'm
the same manner and at the same
rate that any such State or Terri
tory shall tax money or currency
circulating as money within its
Jurisdiction"
In recent editions Of reference books
or compilations no mention seems to
be made under section 3701 of the 1904
statute, but IL Is a well known rule of
law that when two statutes are IRE
conciliably Inconsistent the latter pre-
walls as far as the inconsistency IS con-
cerned and is considered an implied
repeal of the older act.
Therefore il appears to be an incon-
trovertible fact that greenbacks are
taxable, and that those who attempt
TO evRde their assessments by directing
that their deposits be converted into
greenbacks are guilty of misrepresen-
tati0n, and il they failed to pay taxes
the taxes are still due.
The question for the grand Jury
to decide is whether il will counte-
nance evasion of taxes by i'm
proper indirect methods Or put
another way, will the grand jury
permit a man TO do indirectly what
the law positively prohibits?
Ways OF Evading
II is true that there are numerous
ways of evading taXes-that is, there
are many ways by which the wealthy
class can evade them. The property
Visible. They are unable to indulge
IN legal juggling" and thus shoulder
their burdens upon others while they
themselves reap equal benefits from
the expenditure of public moneys.
The grand jury is'compose6 of men
peculiarly fitted to conduct the inves-
tigation. Most of them are men of
large interests, OF wide acquaintance
with local financial conditions. and
know the standing OF perhaps every
man of means in the city.
In a special preliminary report to
Judge David G. Richardson. of the
Hastings Court, the jury has an
nounced that those who made incor-
rect tax returns may correct them if
the corrections are made before No
vember 25th. After that time. ac-
cOrding TO the present schedule, no
corrections Will be allowed, and those
who should have rectified their reports
and did not will be summoned to eX-
plain their negligence. and if the ex-
plantations are not satisfactory indict-
ments Will follow
II Is scarcely within the power of the
jury to indict those who suddenly con-
Verted their taxable securities into
government bonds, but where IL can
be shown that no bonds were actually
acquired-the conversion being mere
ly on paper-a sharp inquiry may be
conducted.
At the top of this article is a COPY
of a letter sent broadcast last January
by the manager of local brokerage
firm. The letter calls attention to tax
day." skilfully suggests "a change in
some of your investments and naively
hints at q method OF procedure which
might be followed If the tax dodger
wished TO hold the bonds only long
enough to enable him to say-and sub
scribe 10 the oath--that he had no tax
able securities or currency.
Formal Opinion.
For the benefit of all Interested or
concerned in the matter Attorney
General Williams this morning, at the
special request of The Journal. gave
an opinion setting forth positively that
greenbacks could be taxed AS well as
GOLD or silver coin.
The Attorney Generals opinion fol-
lows:
Office of the Attorney General of
Virginia
November l6. 1912.
In reply to the question rs to
whether United States legal tender
notes. commonly called 'greenbacks.'
are exempt from State taxation, atten-
ton is called to the following State
and Federal statutes on the subject:
i. The Virginia statute is found in
section 4S9 of the Code. as follows:
The word monies" shall be con-
strued to mean not only gold, silver
and copper coins, hut bullion and all
notes useo as currency
This language clearly embraces
everything that circulates as money.
y. The latest Federal statute to be
found on the subject Is in United
states Compiled Statutes (I9O1, page
239S) and is as follows:
Act August 3, 1894. c. PSI
An Act to Subject TO State Taxa
ton National Bank Notes and United
States Treasury Notes. (2e Stat. 27S.)
STATE TAXATION OF MA
TIONAL BANK AND UNITED
STATES LEGAL TENDER NOTES.
" "