The Cadiz sentinel. [volume] (Cadiz, Ohio) 184?-1851, 1845-08-27
POLITICAL.

0FRead the following article from Hazewel's
ohio Statesman
why should Banking Capital not be-
listed for Taxation aS other Capital!
This is question that we have often heard
asked, but we have never as yet seen satisac-
tory answer. What reason can be given, why
one individual should be taxed on five thousand
dollars invested in agriculture, land, or money
loaned by private individual to another, and
five thousand dollars invested in banking be
taxed merely on the profits? We will put case:
The Assessor for township goes to farmers
house for the purpose of listing his property
land and stock-for taxation, which he does ac-
cording to the valuation. At this same house
there is man who has loaned his neighbor five
thousand dollars, and taken his note for the same.
This the Assessor lists also but there is a third
gentleman who lives at the same place, who
lives on the profits derived from five thousand
dollars invested in banking. He is not listed
for taxation; but as it is bank capital, he is mere
ly taxed on the profits which he derives from
his five thousand dollars! Is this right? Is it
just? Is it equal9 Certainly not, To make it
Just and equal, the Assessor should ask the far
mer what the net profits arising from his farm
and stock were, and when he received an an
swer, list his profits and tax them; and do so with
all who have capital invested in the various in
dustra pursuits of life Or, if this will not bring
sufficient amount of taxable property upon the
duplicate to defray the expenses of the state and
pay the interest on the state debt, then bring all
the banking capital Of the state upon the dup-
cate, and reduce the taxes upon the whole
amount
But how stands il now? The individual who
has capital invested in any Of the industrial pur-
suits Of life, and the individual who lends his
money HIMSELF without any act Of incorporation,
arc taxed upon all they have, TO support the
state government, pay the interest on the state
debt and then contribute to the support of bank
capital and bank officers! And for what? Why,
merely because the banks furnish the people a
'safc, sound and convenient currency where
with to pay all these demands to pay Presi-
dent Of the Board of Control one thousand dol
lars for signing his name to the notes of the
banks, and to pay on an average three thousand
dollars per year for the Cashiers and Clerks of
each bank for some sixty banks in the state!-
And this is not all. What amount of capital
does untaxed banking take from the grand tax
duplicate? The amount of capital authorised
by the new bank law is six million one hundred
and fifty thousand dollars; and as it Is fine OPP
portunity for persons to invest money to good
advantage without being taxed, and without any
danger of losing their real estate in case Of fail
ure of the bank, it is likely il will be nearly if
not all taken; for if bank declares no dividend,
(Which is moi often the case) they pay no tax =
But how is it with the farmer? If his crops fail,
and he produces just enough for his own sub
sistence, and none for sale or profit, his taxes
are just the same. Or suppose the merchant
does business with an average capital of five
thousand dollars: does the assessor wait 10 sec
what his profits are, before he taxes him? No;
he taxes him on the average amount Of capital
invested during the year; and so with all Other
business, except banking But this is to punish
him for not putting his money into baaking!
But, yes, says one, state stocks make great
portion of the banking capital, aud they are not
taxable That is true but why are they not
taxed when invested as bank stock? Because
the same Legislature that passed the bank law
and the tax law decided that it should not be
taxable, when invested in bank stock. The de.
mocrats Of the Senate tried to make state stocks
taxable when invested in banking, but the wings
stoutly refused to submit. Therefore, the own.
,ers of state stock draw their interest from the
state on the stocks, and at the same time reap
profit on them as bank stock.
This is All ingenious plan;-to purchase State
blOShS DCOuuSC JOu Ndi lhNSSb yOul hIphOJ -
them at six per cent, and then turn round 10 the
State in her sovereign capacity, and say, We have
invested our money in your stocks, and now We
want you to authorise us 10 issue notes of circu
lation upon them as basis. This would bo in
vesting money to as good an advantage as the
veriest Shylock would ask
tits fair to presume that three millions of this
capital would be invested in taxable business, j
it was not engaged in banking The only rea
son that we can see why bank capital should no
be taxed as other capital, is, that I'VE (the whil
Legslatprel want to drive all the capital we cal
into banking, by taxing il when out, and exempt
ing it when in!' This is one Of tho objects; anC
this misdrectioh Of capital is not only not lstet
for taxation, but adds 10 the taxes of the people
1t is true, the Assessor does not assess taxes 70
the support of banks and their officers-oul thes,
officers must live, and they are generally mel
who live well, and those who use their notes al
money must pay their expenses as matter 0
course, just as much as you pay the mechanic
onyn greater proportion. 8> fg1S
Well, what arc the probable expenses of al
the officers and clerks Of the banks authorized b.
Keey's bank law to the peope2 This bill au
thorzes sixty-three banks, and, as we have said
three thousand dollars for officers and clerks sa
laries is not extravagant, 10 say nothing of thei
other expenses, and we have the snug little sun
If one hundred and eighty-nne thousand dol