toward the Southern theory of States' rights,
there was a tendency to go to extremes in the other direction.
Some of the Republican leaders, notably Mr. Stevens, were very
radical in their views in this respect, and would scarcely have
hesitated at the abolition of all the checks upon Federal power
which the Constitution wisely gives to the States. But apart from
considerations of this character it was believed by many of the
friends of the national banking system that the imposition of State
taxes, in addition to those to be imposed by the General Government,
would defeat the object of the bill. Others in their anxiety to
strengthen the National Government were anxious to reserve to it
exclusively the largest possible scope of taxation. It soon became
apparent however that some concession must be made to those of both
political parties who believed that the States could not constitutionally
be deprived of the right to levy uniform taxes on property within
their jurisdiction. To meet the views of these gentlemen the Ways
and Means Committee reported a bill with a provision intended to
reconcile all differences of opinion. This gave to the State the
power to tax the capital stock, circulation, dividends, or business
of national banks at no higher rate than was imposed upon the same
amount of moneyed capital in the hands of individual citizens of
the State, provided no tax was imposed upon that part of the capital
invested in United-States bonds. This was adopted by a vote of 70
to 60 on the 18th of April, 1864.

The opposition to the bill in all other respects save this question
of taxation was confined mainly to the Democratic members of the
House. The measure was by this time regarded favorably by all
Republicans. It was considered to be a part of the Administration
policy, and one that would contribute largely to strengthen the
government in its struggle. Its success thus far had demonstrated
that under a perfected law it would soon become the general and
popular banking system of the country. It was daily growing in
favor with business men, and there was no longer doubt that a large
proportion of the surplus capital of the nation would be invested
in United-States bonds and in the stock of National banks. In the
debate in the House which was prolonged, two speeches of particular
interest were elicited. Mr. James Brooks of New York, as the leader
of the Democratic minority on the question, ably summarize