Page:Federal Reporter, 1st Series, Volume 7.djvu/167

 FIRST NAT. BANK OF UTICA V. WATERS. 155 �E«cognizing the force of such considerations, it has beeu lield that the state, by exempting certain classes of taxable property partially or wholly from taxation, does not thereby adopt a rule of taxation which must be applied to national bank shares under the law of congreas. As was said by the ■chief justice in Hepburn y. The School Directors, 23 Wall. 485 : "It could not have been the intention of congress to exempt bank shares from taxation because some moneyed capital was exempt." �In People v. Commissioners, 4 Wall. 244, a deduction or allowance was made under the laws of the state in assess- ments against individuals and Insurance companies on account of investments in the seeurities of the United States, while none was made in assessing the relator upon his shares in a national bank, and the tax was sustained. In Gorgas' Ap- peal, 79 Pa. St. 149, the state laws exempted all mortgages, judgments, recognizances, or moneys owing upon articles of agreement for the sale of real estate, and it was held that such exemption did not preclude the state from taxing na- tional bank shares to the same extent that moneyed capital other than of the character exempted was taxed. In Hep- hirn V. The School Directors, 23 Wall. 480, the precise ques- tion presented in Gorgas' Appeal was ruled in the same way. When an exemption or deduction is allowed by the laws of the state, which is of such general operation as to affect all classes of taxable property, it must be allowed in assessing shares in,national banks, because it necessarily is the rule of assessment. The deduction was of this character in Albany Exchange National Bank v. Hills* and because it was so reeog- nized in assessing the national bank shares the assessment was declared void. �Moneyed capital cannot be said to be exempt from taxa- tion by the laws of this state because th^t portion of it which is invested in the shares of various classes of corpora- tions is exempt. Not only does the state tax moneyed cap- ital generally, but the capital invested in these corporations is taxed in the hands of corporations. If thereby any ineqaal- �«See 5 FED. Kcp. 248. ��� �