The Democratic sentinel. [volume] (Cadiz, Ohio) 1852-1853, 1853-08-10

ERTY or oFGyDuIBUALs." is the langlIise %
She constitution. Now, what is tie properIio
: tyofa bank? Are not the notes and bins
J discount' and which it drawing interest;
property? Are not the State stocks belong
ing to it. and upon which it draws interest.
property? Are not all other moneys; ef- .
tects or Dues loaned, invested, or other {
wise used or employ with view to profit,
or upon which such bank or banking COM
pany gecsives, is entitled to receive in'er-
est, property" All these would be prop
eriy IN The bands Of an individual, and lie H
would be compelled to list them for taxi
? tion otgt
But we are met with the argument that ]
from has moneys and credits" an individu-
a. may deduct its Indebtedness: aad it is
claimed that the same privileges should be
extended to band. Ghis is true, and We
are free to admit that il is an anomaly in the
law. It's existence, may, however, be ex
planned in several ways. In the first place
indebtedBess is permitted only TO be deduct
ed by individuals from the single item of
moneys and credits, upon supposition that
lG is limited to the NECEssIrIEs OF the owner
and that the moneys on hand are intended
exclusively for the purposeof liquidatng thaE
Indebtedness, and not for the purpose II
specializing or profit. But when they be
cGme the STOCK IN TRADE of the individual.
on corporation and upon which they predt
cate BUSINESS as in the ctSe of a banker
or broker, they stand precisly upon footing
with the MERCHANDISE of the merchant, and
should be taxed without deduction" ANY
f, ap h., to - -
taxation entirely; for it is wei known to all
! who have been SO far initiated into the
mysteries of banking as to be permitted to
to inspect bank balance sheet. that the
LIABILITIES ALWAYS BooT UP EQUAL TO VHR
RESOURCES. There is another reason why
there is no anology between the case Of All
individual and bank. The individual =
who contracts Indebtedness is compelled !.
TO pay interest, or its equivalent, in enhan-'
ced price upon that Indebtedness, whereas
the banker is priviledged by law to
DRAW INTEREST UPON HIS owN INDEBrE3-
NESS. So, in ANY light in which we view
it, the cases are not analogous. But above
! all this, the constitution says: "The General
Assembly Shall provide, by law, for taxing
the notes and bills discounted or purchased
moneys loaned; and all other property, ef-
lects or dues, ofevery description, (wIrH-
OUT DEDucroN) of all banks now existiny, f
or hereafter created, &C." In like manner
individuals are not, except in the single in
stance mentioned, permitted to deduci their ~
Indebtedness from theirproperty. Through
the entire law, the idea of taxation upon
CAPITAL is eXcluded-it is no where made
the basis of assessment. In the law, as well
rs the constitution, PROPERTY alone is made
the basis, without reference to the amount
of capital employed. The farmer who pur-
chases piece Of land upon credit is Mot
permitted TO deduct any portion Of his in
debtedness from its value--he is taxed upon y
the full amount. Neither can he deduct
from the value OF his stock, his horses, cat
tie, or other personal property, any portion
of lis indebtedness. Neither can the mer-
chant from his stock of goods, nor the man
uiacturer from the materials employed in
his busincss--all these are taxed upon the
"a7erage amount of property in their pos
session; and under their CONTROL" without
any deduction for Indebtedness. Now we u
submit that the notes and bills discounted, =
moneys loaned, DC, Of the banker, on aIi
OF which lie is drawing interest or making
profit, are as proper subjects for taxation Y
as the goods Oh wares Of the merchant, tay-iE
ing idle on his shelves, depreciating III value
every day, and for which he is perhaps in-lA
debt or paying interest; Or the stock Of
/ the farmer, the manufacturer OF mechanic
| The Instructions under the tax law have
been, for years, merchants must include In
/ their statements the average value Of their
goods and merchandise, and manufa@turers
/ the average value of the raw material used
and on hand in the manufactured and IN
manufactured articles" It is tic average
value of the PRopEREy ON HAND during tile
past year, and not the value of the cApmAL
employed, that must be returned "Mer-
chants and manufacturers CANNOT p3DUcr
THEIR DEBTS rom their stock Of goods and
manufactures This is the language Of
Auditor Woods, in his Instructions u Asses
sors and Auditors over the state, The last six
! years, under the old tax law, which has been
eulogized by every Wing poltiLian and
press, and lauded to tie skies as q pesfeeE
model Of tux law. Where then is ihG M
justice in applying to banks and bankers tte
same rules, manufacturers, and otber hi!
dividuaIs? But it is said tie bankeris COM
PEELED to keep a certain amount of money
on hand to meet his indebted Eess, and he is
taxed upon that. Not So. The money iay-
ng idle on hand, the deposits or other mo-
ney not used. employed or invested Wilha
view to profit, arc not reQul red to be lissed:
and herein may we'll be expressed dou5;s rs
| to whether the law goes as Ear as the eon.
stitutioh requires. Again; it is objected,
the law taxes the deposits" Of bank, and
thus they are taxed twice; once in the hands
Of the bank and again in the hands of The
depositor. 70 this we reply thar the mo-
neys no Geposite, so long as they are kept
bona F1DE as such, are not required to be
lisSsd: it is only when they have been con
vented by the bank to its own use. and Inan-
ed cut, or otherwise employed with d view
to profit that they are 10 lie listed fer tax
alton. This is only an illustration Of one
OF the many apparent inconyenences that
arise under any system Of taKatipn upon
property. Many similar cases occur with
respect to individuals, as, for instance, TAX
ing q house or farm in the possession Of
the purchaser, and The notes of hand repre-
senting the vatue OF the saina. IN the hands
| Of the seller. If, howerer,iit be determined
that the banker Or disposition shall be ex
fempted, itappears TO us that equity would
| say the doposlt0r, who runs the risk wiCh.