Monopolies -- United States; Railroads and state -- United States
lands or money to railroad companies--how can it lawfully collect taxes
from the people, either by direct levies, or in duties upon articles of
commerce, for the purpose of re-imbursing the government for the lands
donated to corporations, or to pay either the principal or interest on
the bonds given to these corporations? As well might congress levy a
direct tax upon the property of the people for the purpose of donating
to a private party sufficient means to build a residence; there is not
found in the constitution any warrant for either of such levies. Both
alike are unwarranted usurpations of power, not to be justified under
any grant of power from the people to the federal government. To admit
that the congress of the United States possesses the power to tax the
people for any purpose save for the support of the general government,
is to admit that the constitution is elastic, subject to any
congressional construction, and liable to be used as an instrument for
promoting personal and private ends. Congress had no power to vote
subsidy bonds to railroad corporations, as we have already shown; nor
could it release these corporations from the payment of these bonds, and
the interest as it accrues, and collect the amount from the people in
duties on imports, or in any other kind of taxes. No such power was
ever delegated to the general government by the people. This power
cannot be found in any part of the constitution. While this is true, the
people are now taxed annually to the amount of many millions of dollars
to pay the interest on the bonds issued to the Pacific railroads. Taxes
are also collected to the amount of $18,000,000 or $20,000,000 to pay
the interest on the banking capital of the country, the stock of a
gigantic corporation, chartered by congress, but in the hands and under
the control of private parties and companies. While the general
government, under the constitution, has the control of the money of the
country, and its coinage, value, etc., and can provide such means as
shall be deemed best for the administration of the national or public
finances, it has no power to enter into private banking; and because it
has not this power, it cannot create private banking institutions and
tax the people for their support. Any tax levied upon the citizen by the
general government for any purpose whatsoever, save for the necessary
expenses in the administration of the same, in all of its departments,
in accordance with the letter and spirit of the constitution, is without
authority, and violates the fundamental law. The levy of taxes in aid of
private corporations subserves none of the purposes of the government,
and is the exercise of a power not possessed by congress. Our position
is fully sustained by legal adjudications, and by the writings of
eminent jurists. Chief Justice Marshall, in his writings upon the
constitution, has considered this point. He says, on page 345 of his
Public-domain text, read in full here on John Shaqi.
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