The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-04-20

This is not all. My friend who spoke before me
adyerted 10 the inequality of the operation OF the
banks upon different individuals. And, in relation
10 the argument the other side of the House, that
we are about TO furnish currency for the govern.
ment and its officers, and another for the people,
have TO say that there is principle laid down in
politics, which, if we follow we never can err; and
that s to try the laws pass by this test Equal
and exact Justice TO all; exclusive privileges to
none" The moment we bring our action here or
elsewhere to this test, we cannot 90 wrong.
What has been the effect Of the banking system
in Ohios The Wings who passed the bank bill,
and have re-enacted certain laws on the subject al
the late session, taxed everything animate and IMAM
innate, tangible and intangible, in the language OF
the law; they taxed everything, with one exception;
and | do not even know that, properly speaking,
that is exception, because banks are scarcely tam
gibe things. Laughter. That exception Is the
banks. Their capital 10 not taxed therefore, il the
phraseoogy Of the law is correct it is not tangible
Even the farm-houses Of our people are taxed; and
hogs six months old, They do not tax small pigs;
but sheep are taxed; and even the old huxter-wo-
mans chickens ara taxed. Yes, sir, chicken tax!
heard something Of that in 1910; it was charged
upon the democratic party by their opponents who
have now turned round and enacted the very law
upon which they arrsigned US. They have taxed
everything visible and invisible, seen and unseen,
except bank capital, and that goes free. Is this
right Is this the principle Of Jeiferson'-"Equa
and exact justice TO all men, exclusive privileges TO
none.n No, SIR 1t Is giving exclusive privileges TO
the rlch-to bankers-that are denied TO the people
In Ohio we have made the distinct issue on the
hard-money platform. Igo it with perfect rush,
and as my friend who spoke before me says, pre-
sent this question fairly the people, after the
perience they have had and do not doubt the re-
suit any more than doubt my own existence
Mr.. SoHEScK desired to inquire Of his colleague
whether, under the existing law the State Of Ohio
- 4 III e.
and whether he knew of any State in the Union
where the capital stocks of the banks were taxed
Mr.. SAWYER. Il is true the profits are taxed, as
my colleague says. Is that alp
Mr.. ScHEScK. That is all.
Mr. SAWYER, (proceeding) Suppose we were
to tax the farmer in Ohio on his profits, how much
would he makel For the last four years the farmers
there have complained that they have made nothing;
and if they to be taxed on their profits, as the
banker is, how much tax would you geI But ask
my colleague to explain to me, how he reconciles it
with any settled principle of right, TO the farmer
and mechanic on everything invested in his farm,
and at the same time to tax the banker only on his
profits pause for reply.
Mr.. ScHEScK. | have no objection to reply.
think it fair and beneficial in this respect-that this
tax the profits of the banks, taking average of
the profits there for the last 10 years amounts to
than the tax which was proposed by democratic
legislature three years ago would have amounted To
on the capital stock itself II, on the other hand
the banks make such immense profits as the gentle
man and his friends claim that they make then a
six per cent. tax on the profits would amount to
more than twice as much the tax which they
themselves proposed on the capital stock
Mr.. SAWYER. Will my colleague answer my
question: Does he think It is fair to tax the capita
Of the farmer, and only the profits of the banker
Mr.. ScHENcK. do.
Mr.. BRNKERHoFr. With the permission of my
colleaune | will ke the lhertu IN
fact By the present banking system, in the State
of Ohio, bankers are not compelled to make divi-
dends at all. They may invest their property in
other stocks, and thus avoid all dividends if they
think proper.
Mr. SoHENcK. Are they not required to make
dividends sem-annualy at least
Mr.. BRINKERHorr. Not, according to my recol-
lection.
Mr. SAWYER. l find that | have touched a sore
place; that have been saying something that has
carried some force with it. Now | ask my COL
league Mr.. SCIENCE to reverse the tables. He
says it is fair to tax the banker on his dividends
and the farmer on his capital. Suppose he should
turn round and tax the banker on his capita of
million Of dollars, and the farmer his dividend:
would that be fair No, that would be the farmers
bull goring the bankers OK. No matter how poor
the farmer, mechanic, or laborer is, he is taxed
upon the amount Of his capital but the banker only
on the amount Of his dividend; if no dividend, no
mental principle on which every good democrat and
every good man in this country ought to act,
"equal and exact justice to all"
1t appears by section of the law creating the
bank that semannual dividends of net profits may
be made. The following is the section:
The directors of said banking company shall seman-
nuay on the first Monday in May and November, declare
dietdtnd 9 much Of The net profits they shall Judge
and certify by his oath full clear and
Of the condition Of the company as shall be that day
after declaring the dividend" sc.
find by report made by Messrs. Perkins and
Coombs of the Senate, that the circulation of the
sixteen branches is Sl,ll8, 1871; the profits of this
amount at per cent. would be little over S67 900
To tax the profits, as the law would seem to con-
template, the banks would have to pay in shape Of
taxes about $4,000; but by the same repor, ii ap-
pears that they have "judged it erpedent" only to
dtciare dipidend' sufficient to pay tDeniy dollars
and SIXTY sir cens Let it be borne in mind that the
capital Of these banks actually paid in is S927,90S
To compute the tax this sum, money at inter-
est in Ohio is taxed, it would amount to the snug
sum of $4,000, which sum any other person than
banker would be compelled to pay This is one of
he advantages dsriped by being banker.
have as good right to the favors and benefits of
his government a corporation of bankers, and the
moment you grant privileges to one class which you
withhold from another, you do injustice, and the
people will complain. So long as you impose
equal burdens upon all, you will hear no complaints
The people Will be satlshed. But II, by artificial
egsIation, you create companies and endow them
With privileges which you refuse to the great body
If the people, they have right to complain, and to
Use in arms against such Injustice.
| understand there is to be a convention in the
State of Ohio. | speak Of Ohio, if gentlemen will
excuse me, because am making a speech which
intend to send out to ten thousand democrats in that
State say there is to be convention held within
he atmosphere OF one of these local banks-the
bank of Wooster-which is now shaking in the
,reeze and lettering to its foundation under the in
,estigation and scrutiny to which it is subjected.
rope that every democrat who goes to that conven
ion will take FIVE or ten dollar note Of that bank
With him, and ask the directors to redeem it, They
ire as much bound to fulfil their promises TO the
people as am to fulfil mine. What is the difference
between banker and an ndividua' Every man
an individual is bound for every debt he contracts
wen to the last dollar he possesses. But the banker
nay friter away the capital and the funds of his
,ank, and refuse to redeem the issues he has put
orth among the Woodworking people. Is it because
lie is poor and unable to payi Surely not. You
tnow, Mr.. Chairman, numerous instances Of bank
,rs riding in their carriages and farng sumptuousy
very day, whilst the people, the holders of their
rotes which they refuse to redeem living in pen