Page:Federal Reporter, 1st Series, Volume 7.djvu/166

 164 FBDEBAL BBPOETBR. �erty generally ? Or does the taxation of neither of these sub- jects of taxation ^furnish the test, and is it to be found in the taxation imposed by the laws of the state upon that part of the peraonal property of its citizens whicb consists of money or shares of stock in moneyed corporations ? These questions have been answered adversely to the complainant's theory in several cases which have been considered by the sxipreme court of the United States. �It was the objeot of the act of congress to permit the state, which creates corporations, or allows them to exercise their franchises within its limits, to tax them as its own policy may dictate, and by its System to foster them by light taxa- tion, or discdurage them by onerous taxation, without thereby establishing a rule to control its taxation of the shares held by its citizens in national banks. The states have no power to tax the capital of national banking associations, but are granted the power to tax the moneyed capital of its citizens invested in such shares to the same estent as though it remained uninvested therein. The citizens of a state may invest their moneyed capital as they choose, and must accept the measure of taxa- tion which is imposed by the state on the character of the investment they have selected. If they choose to invest it in corporations or joint-stock companies, they must submit to have it taxed upon the principles which the state has adopted or may adopt for the taxation of such corporations or joint- stock companies. As the policy of the state maj' dictate dif- ferent modes and measures of taxation for different classes of corporations, it would be difficult, if not impossible, to ascer- tain the measure of taxation for national bank shares by that prescribed for capital invested in other corporations. Thus, while life Insurance companies are taxed by a franchise tax, and taxation of the shares exempted, other corporations are taxed upon their capital stock ; while in others still the shareholders are taxed upon their shares. Which class of corporations would furnish the rule for taxation of sharehold- ers in national banks ? The section should be so construed as to obviate this difficulty, and prescribe a rule capable of praetical application. ��� �