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U.S. Supreme Court

Posadas v. National City Bank, 296 U.S. 497 (1936)

Posadas v. National City Bank

No. 114

Argued December 11, 12, 1935

Decided January 6, 1936

296 U.S. 497


1. Capital and deposit taxes levied by the Philippine Government, in addition to the taxes permitted by R.S., § 5219, upon branches of a national bank lawfully established in the Philippine Islands under § 25 of the Federal Reserve Act, as amended, are invalid. P. 296 U. S. 499.

2. The Philippine Islands are a "dependency of the United States" within the meaning of § 25 of the Federal Reserve Act, originally and as amended by the Act of September 7, 1916. Pp. 296 U. S. 500, 296 U. S. 502.

3. Section 26 of the Organic Act of August 29, 1916, which provides:

"That the laws now in force in the Philippines shall continue in force and effect, except as altered, amended, or modified herein, until altered, amended, or repealed by the legislative authority herein provided or by Act of Congress of the United States,"

is to be taken distributively -- i.e., as conferring power on the local legislature to deal only with local laws, and not to alter, amend, or repeal any Act of Congress. P. 296 U. S. 501.

4. The declaration of §§ 6 and 31 of the Philippine Organic Act of August 29, 1916, continuing in force laws applicable to the Philippines which were not amended or repealed by that Act or in conflict with any of its provisions, applies to § 25 of the Federal Reserve Act of 1916. P. 296 U. S. 501.

5. The Act of September 7, 1916, which amended § 25 of the Federal Reserve Act "to read as follows," repeating the words of the original section and adding a provision authorizing national banks to invest in the stock of certain other banks, did not repeal and immediately reenact the old provisions, but left them continuously in force, and speaking from the time of their first enactment. P. 296 U. S. 502.

6. Section 5 of the Philippine Organic Act of August 29, 1916, which declares that the statutory laws of the United States "hereafter

Page 296 U. S. 498

enacted" shall not apply to the Islands except when they specifically so provide or it is so provided in that Act, does not apply to those provisions of § 25 of the Federal Reserve Act of 1913 which were copied into and retained by the Act of September 7, 1916. Pp. 296 U. S. 501, 296 U. S. 505.

7. Where there are two acts on the same subject, effect should be given to both, if possible. P. 296 U. S. 503.

8. Repeals by implication are not favored, and will not be adjudged unless the legislative intention to repeal is clear. P. 296 U. S. 503.

9. The mere fact that a later statute covers the whole subject of an earlier one and embraces new provisions does not demonstrate an intention completely to substitute the new for the old. A repeal will be implied only so far as the later enactment is in conflict with the earlier, or so far as it is plainly intended as a substitute for the earlier. @ 78 U. S. 503.


Certiorari to review a judgment ordering the Collector to refund to the Bank a sum of money which the Bank had paid to him, under protest, as taxes, and had sued to recover. The judgment of the Court of First Instance, directing recovery of only a part of the taxes, was reversed by the one here under review.

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