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Show GOVERNMENT BONDS FREE FROM TAXATION WASHINGTON, April 22. Deciding several cases brought to It by savings banks in Dea Moines, la., the Supreme court of the United States held today that Government bonds In which the capital cap-ital stock of such banks Is invested are exempt from taxation. The test opinion delivered by Justice Moody reversed the ruling of the Iowa court, which laid down the general doctrine that "the general gen-eral e-temptlon from State taxation with which the bonds of the United States are clothed, does not entitle the bank to deduct de-duct the amount of such bonds from the value of the shares of their stock which are assessed to It for purpose of taxa- Justlce Moody's opinion held that the course outlined is "clearly a direct tax on the securities of the United States." and therefore not permissible. The Chief Justice and Justices Harlan and Peck-ham Peck-ham dissented. |