The question presented by this writ of error is whether lands in the state of Tennessee, which, pursuant to acts of congress for the laying and collecting of direct taxes, are sold, struck off, and purchased by the United States for the amount of the tax thereon, and are afterwards sold by the United States for a larger sum. or redeemed by the former owner, are liable to be taxed, under authority of the state, while so owned by the United States. The judgment of the supreme court of Tennessee rests upon the position that these lands, although lawfully purchased by the United States, and owned by the United States at the time of being taxed under the laws of the state, were not exempt from state taxation, because they had not been expressly ceded by the state to the United States. We are unable to reconcile this position with a just view of the rights and powers conferred upon the national government by the constitution of the United States. The importance of the subject, and the consideration due to the opinion of that learned court, make it proper to state somewhat fully the grounds of our conclusion.
In the words of Chief Justice MARSHALL: 'The United States is a government, and consequently a body politic and corporate, capable of attaining the objects for which it was created, by the means which are necessary for their attainment. This great corporation was ordained and established by the American people, and endowed by them with great powers for important purposes. Its powers are unquestionably limited; but while within those limits, it is as perfect a government as any other, having all the faculties and properties belonging to a government, with a perfect right to use them freely, in order to accomplish the objects of its institution.' U.S. v. Maurice, 2 Brock. 96, 109.
The United States, for instance, as incident to the general right of sovereignty have the capacity, within the sphere of their constitutional powers, and through the instrumentality of the proper department, to enter into contracts and take bonds, not prohibited by law, and appropriate to the just exercise of those powers, although not expressly directed or authorized to do so by any legislative act; and likewise to take mortgages of real estate to secure the payment of debts due to them, notwithstanding congress has enacted that 'no land shall be purchased on account of the United States, except under a law authorizing such purchase.' Act of May 1, 1820, c. 52, § 7, 3 St. 568; Rev. St. § 3736; Neilson v. Lagow, 12 How. 98, 107, 108, and cases there cited. So the United States, at the discretion of congress, may acquire and hold real property in any state, whenever such property is needed for the use of the government in the execution of any of its powers, whether for arsenals, fortifications, light-houses, custom-houses, court-houses, barracks, or hospitals, or for any other of the many public purposes for which such property is used; and when the property cannot be acquired by voluntary arrangement with the owners, it may be taken against their will, by the United States, in the exercise of the power of eminent domain, upon making just compensation, with or without a concurrent act of the state in which the land is situated. Harris v. Elliott, 10 Pet. 25; Kohl v. U.S., 91 U.S. 367; U.S. v. Fox, 94 U.S. 315, 320; U.S. v. Jones, 109 U.S. 513; S.C.. 3 Sup. Ct. Rep. 346; U.S. v. Great Falls Manuf'g Co., 112 U.S. 645; S.C.. 5 Sup. Ct. Rep. 306; Fort Leavenworth R. Co. v. Lowe, 114 U.S. 525, 531, 532; S.C.. 5 Sup. Ct. Rep. 995.