American watchman. [volume] (Wilmington, Del.) 1814-1822, 1822-02-05


served TO be subscribed by The state and 8l25000
to be taken by any persons who might think proper
to inves; their money in tile stock. On its lection
in the senate, new bill was originated in the house
for re.chartering all the banks in the state, during
the term Of FIVE years, to commence at the expira-
ton OF their present charters in September 1922
containing, like its predecessor no provision for
taxing the Farmers Bank, or any of them. This
after passing the house was concurred in by the
SENATE with sundry amendments one of which pro
vided that tax of one half of one per centum
should be paid annually by each bank on its capital
stock The conditions of the new charters were &C
cepted by the Bank of Delaware and the Bank Of
| Wilmington and Brandywine, but rejected by the
Commercial Bank and the Farmers Bank. The
latter applied to the legislature il. 1921 for new
charter be granted for the term Of 60 years, aud
offered bonus of 8l5,0oo, 10 be paid in four years
but on condition that no other Bank should be char
tered in the state, save one in the Borough OF Viii
mington A charter during the term asked ~as
granted, but the bonus rejected and in lieu thereof
tax of one half OF one per Centum imposed on the
capital stock Of the bank Dissatisfied still, it has
memorial praying for a repeal of the tax imposed
The other banks have petitoned also for repeal oil
reduction of the taxes laid on them
/ / have thought much on the subject Of taxing
banks and the result of my reflections is,--tha
there is species Of property which will better ad
init of being taxed, and which indeed ought 10 b
more highly taxed, than banE stock. 1t possesses
many advantages over oher property as,
|. The other property Of stockhoder is not res
Iponsble for the engagements or losses Of the ban
lin which his stock is vested.
), Q. The business Of banks is transacted accordin
TO fixed rules; and under guards and securlie
which individuals do not observe in the transactio
of their concerns. From exercising this cautio
{ and care, their losses are comparatively small
(. g. Debtors in making payments, almost invaris
IDLY discharge the claims OF banks before the dc
e mands of individuals.
4 Although banks are not allowed to take NOR
than per cent for the money they loan yet the
are priviledged TO issue notes 10 twice the amour
of the their capitals, they may arlGcially receiv
at the rate Of 12 per cent, besides what they get
: their specie and deposits.
5 The interest on their loans is paid in advance
the time they are obtained and for $50 days the
obtain interest as for full year.
Other and different reasons why the stock Of bank
should be taxed MAY be found in the evils they
! ate; for although productive of some good, The
o are the source also of much evil and which is tn
{ greater of the two is a problem unsolved.--I
consequence Of the facilities they afford for obtaiI
d ing loans of money, many Of those who are encou
e aged to resort to them for that purpose, inyolv
lthemselves and others deeply in debt, which
e frequently results in their ruin. Were list mad
out and published, of ell the debtors to the bank
this state and the liens their property, itwoul
excite great astonishment as we'll as alarming ap
IS prehensions for The public welfare. They consti
ute rnonied aristocracy in the state, which of a
others is the most corrupt and dangerous. Posses
ing an undue influence at elections and in the legi
: ature they are unfriendy to the liberties and in
a'lteres:s Of the people. and may become engines
very great oppression and injury.
!, The stock in our banks belongs not to the lowe
# and middle classes of society, but 10 the monte
!. men, the most opulent persons in the communit.
h who are the abIest to contribute to the public ext
!. gencies. The dividends on bank stocks have, it
true. for two or three years past been one fourt
a. less than they were before that time but has nj
IS the income Of freehoders, farmers and mechanic
g and the wages Of aborers, suffered much great,
Us diminution They have Notwithstanding, the san
bauA
to. And would it not be unreasonable and uniu
ee that The rich stakeholder should be favored by re
ducing the tax on his stock, without their tax