REPORTS OF THE DECISIONS OF THE SUPREME COURT OF THE UNITED STATES, OCTOBER TERM, 1879. NATIONAL BANK v. UNITED STATES. 1. Sect. 3413 of the Revised Statutes, which enacts that "every national banking association, State bank, or banker, or association, shall pay a tax of ten per centum on the amount of notes of any town, city, or municipal corporation, paid out by them," is not unconstitutional. The tax thus laid is not on the notes, but on their use as a circulating medium. 3. Veazie Bank v. Fenno (8 Wall. 533) cited and approved. ERROR to the Circuit Court of the United States for the Eastern District of Arkansas. This is a suit by the United States to recover from the Merchants' National Bank of Little Rock, Ark., $160,000, being ten per cent on $1,600,000 of certain notes of the City of Little Rock, which it was alleged the bank had paid out during the years 1870, 1871, 1872, and 1873. The notes were issued and put in circulation by the city, and used in business and commercial transactions as money. They were printed on bank-note paper in amounts ranking from $1 to $100, and were payable to a person named or to bearer. By an ordinance of the city, and also by an act of the legislature of the State, they were receivable in payment of city taxes and of all dues to the city. Sect. 3413 of the Revised Statutes is as follows: "Every national banking association, State bank, or banker, or asso |