The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1855-05-02

residing IN, citizens OF such state, with the a
mount OF stock owned by CASH" Although this
provision, taken in connection with decision
oil the Supreme Court surenders BY its silence, The
right OF the States to tax the baking institutions
created by this corporation, under the name o
branches throughout the Union, it is evidently in
tended TO be construed as a concession OF thelI
right to that portion of the stock which may be
held by their own citizens and residents. In this
light, II the act becomes law, 1t will be under
stood by the States, who will probably proceed to
levy taXequal to that paid upon the stock OK banks
incorporated by themselves. In some States thai
tax isnow one pei cent, either on the capital or on
the shares, and that may be assumed as the amount
which all citizens or resident stockholders Will be
taxed under the operation Of this act AS 1t Is only
the stock held in the States, and not that employed
within them, which would be subject to taxation;
and as the names of foreign stockholders are not 10
be reported to the reasurers of Sit tes Ii Is obvious
that the stock held by them will be exempt IRON TINS
burden Their annual profits, VIII, therefore be
one per cent. more than the citizen stockholders,
and as the annual dividends OF the Bank may be
safely estimated at seven per cent. more to for
egners than to citizens of the United States. 10 ap.
preeiate the effects which this state OF things will
produce, must take briet review OF the opera
ton and present condition OF the Bank OF the Uni
ted States.
BY documents submitted to Congress at
the present session it appears that on the lst
of January 1882, of the 90 millions of pri-
vate stock in the corporation, SO, 405, 500
were held by foreigners, mostly of Great
Britain. The amount of stock held in the
nine Western and Southwestern States, is
l4O, 200 dollars; and in the four Southern
States is 5.623, 100 dollars: and in the Mid.
die and Eeastcrn States is about l3, 522, 900
dcllars. The profits of the bank in 1873
as shown in statement to Congress, were
about 3,455 598; ofthis there accrued in the
nine western States, about 1,64O,O48 dol
lars; in the four southern States, about 352,
5U7; and in the middle and Eastern States,
about 1853, ,O4l.-- little stock is held in
the west, it is obvious that the debt of the
people; in that section. the Bank is prinoi-
paly debt to the eastern and foreign stock
holders; that the interest they pay upon it,
is carried into the eastern Stat and into
Europe; and that it is burden upon their
industry and drain up"n their Currency,
which no country can bear without inconve
nience and occasional distress. To meet
this burden and equalize the exchange op,
erationS of The Bank, the amount of specie
drawn from those States through its bran
ches within the last two years, as
shown by its official reports, was about Sc,
0000O0 More than half million Of this
amount does not stop in the Eastern States,
but passes on to Europe to pay the dividends
Of the foreign stockholders. In the prnci-
pie. OF taxation recognized by this act, the
wes ern States find no adequate compcnsa-
ion for this perpetual burden on thelf indus
try, and drain of their currency. The
Branch Bank of Mobile made, last year $95.
14O; yet, under the provisions Of this act
the State of Alabama can raise 40 revenue
from these profitable operations, because,
not share of the stock is held by any of
her citizens. Mississippi and Missouri are in
the same condition liz relation to the bran
ches at Nachez and St. Louis: and such, in
greater or less degree. is the condition of
every western State.
The tendency of the plan of taxation
which this act proposes, will be to place the
whole United States in the same relation to
foreign countries, which the western States
now bear to the eastern. When by a tax
on resident stockholders, the stock of the
Bank is made worth ten or fifteen percent.
more to foreigners than to residents, most of
it will inevitably leave the country.
Thus will this provision, in its practical
effect, deprive the eastern, as well as
the southern and western States, of the
means of raising revenue from the exten-
sion of business, and great profits of this
institution. 1t will make the American peo
pie debtors to aliens in nearly the whole
amount due to this Bank and send acres e
Atlantic from two TO five m llious Of specie
every year to pay the Bank dividends.
In another of its bearings this provision
is fraught with danger. Of the twenty five
directors of the Bank, FIVE are chosen BY
the G1veinne mt, an twenty by the citi-
zen stockholders. From all voice in these
elections, the foreigu stockholders are ex-
cluded by the charter. In proportion, there
fore, as the stock is transferred to foreign
holders, the extent of suffrage in the choice
Of directors is curtailed. Already is almost
u third Of the stock in foreign hands, and
not represented in election 1t is constant
ly passing out of the country, and this act
will accelerate its departure. The entile
control of the institution would necessarily
fall into the hands Of the few citizen stock.
holders, and the ease with which the object
would be accomplished, would be tempta
ton to designing men 20 secure that control
in their own hands by monopoizing the re
mainiag stock. There is danger thai pres
ident and directors you'd then be able tc
elect themselves from year to year, anc
without responsibility or control, manage
the whole concerns of the Bank during the
existence Of its charter. Ii is easy to con
ceive that great evils to our country and its
institutions might flow from such concen
tration cf power in the hands of few ire
sponsible to the people.
Is sthere no danger to our liberty and in
dependence in a Bank, that in its nature ha!
IS little to bind it to our country? The
President of the Bank has told us. tha
most Of the State Banks exists by its for.
bearanee. Should its influence become con
centrated, as it may under the operation o
such an act as this in the hands OF a self
elected Directory whose interests are iden
tilted with those of the foreign stockho der
will there not be cause to trembe for thu
purity OF our elections in peace, and for th'
independence of our country ill war? Thei
power would be great whenever they nigh
choose to exert it; but If this monopolv
were regularly renewed every fifteen o
twenty years, on terms proposed BY
themselves. they might seldom, in peace
put forth their strength to influence elec
tons, or control the affairs of the nation.--
But, if any private citizen, or public func