Weekly standard. [volume] (Raleigh, N.C.) 1858-1865, 1859-01-19

$50 frs.3slf s z n ~ u
in its rate of discount; restricted in the amount of
notes it may have in circulation and the real estate
it may hold, and restricted in the time in which it
may continue to do business. s's 4 ~
An individual may, on the other hand. employ
any amount Of capital be can command do business
any where and Of any kind trade in any thing and
to any amount may discount notes at any rate that
another party will agree Tor submi) to- many do,
at from ten to twenty five per cent may have notes
outstanding, not only to "twice the amount Of his
detuar capital as allowed to banks but to ten or
one hundred times the amount as many have may
do business life time and then leave it to success
sor. - sss'f'. FL, So
Here it is plainly shown that individuals possess,
unlimited By ao all the privileges that banks have
in teited degree, with the one exception alluded
to, while the former have many more which the lat
ter have not. That exception is, the privilege Of
issuing notes for circulation as the representative Of
money-the great 'peculiar prioilege for whichitis
thought, sincerely no doubt that banks ought to be
trebly taxed. That this is a peculiar and valua-
BILE privilege" is freely admitted but the other
hand it can be said with equal force and truth that
in furnishing the State with sound paper currency
the banks render full eguip0ent for the privilege.
Especially ought this to be acknowledged when it is
considered that such privilege could not be exer
cised by individuals generally, with any advantage
to themselves, nor without producing incalculable
mischief to the public and hence it is confded to
few responsible corporations for much the same
son that the inhabitants of towns and cities surren
der part of their rights to the control Of corporate
authority, l. e., because they be better contro
ed and other rights an5 interests better protected
Here it may be as we'll in order to reason correct
y on the subject to consider whether banks of issue
are, or are not proper useful and desirable insttu
tons. Happily this question has been practically
JnI - c<9-
whatever favorte theories some may indulge in ad-
vocatng, and which, put in practie under other cir
cumstances in another age might work well, all
practical men must admit that in the present age,
and as long as the credit system continues banks Of
issue proper useful and desirable institutions
Aye more they are considered necessity, so much
so, that the people would sooner consent to abol
ish them than they would railroads and steamboats,.
As such then, ought not our banks to be cherish
ed rather than warred against and made the subjects
of unequal and ercessire taration? Do they not
furnish sound, a safe, paper currency, and thus
fulfill their only obligation to the people which di
rectly concerns them? 1t can be asserted without
fear Of its being gainsayed that State has safer
or more reliable paper currency than North Carroll
M. Forty years experience corroborates this, du-
ring which, no man has necessarily lost any thing
on the notes of North Carolina bank Nor need
do so at any time, for they are amply secured,
too, if required, the bonds of the State Once in
lifetime perhaps, one might happen to get note
that would not be made Immediately available, but
there would be no more need of shaving il off, at
loss than there would be claim against the SOL
cent estate Of deceased person, which all business
men are liable to have erery gear.
farmer is taxed only on his lands and slaves
not on his profits from working them; merchant
only on his capital employed, not on his profits
and stockholders in manufactures and railroads. on
their dividends only not on their capital; and why
should bank stockholders be taxed on both capital
and dipideadss Are they not Of the same classes
of persons as compose other corporations and rep
resent the other chief interests of the State and
titled to as much favor and consideration at the
hands of the Legislature Do not their institutions
render important and valuable services in the gen.
eral business transactions in the State? Without
the facilities afforded by banks to buyers and ship
pers of produce would farmers be able to get fol-
their productions as much as they do? most assur.
eddy not, by from ten to twenty per cent And in
like proportion the other interests of the State
promoted. Then why tax the business Of banking
higher than any other?
Let case where capital only is employed be pre-
scented to further illustrate the inequality of taxa
ton. A and B have each some surplus money.
is willing to place his where it can be borrowed al
legal interest and takes share of 800 in bank
| is little sharper, and thinks he will shane
with his money. So he tout Of accommodation
lets neighbor have ninety dollars lit used to be SC
or SO before bank capital was so abundant) for
promissory note for 500, drawing interest At the
end Of year B receives $1O6, or SIG profit on his
$780, nearly eighteen per cent, and if he makes two
Operations" in year with the same capital, as is
often done, gets nearly $2S, or about thirty pei
cent profit; while gets only eight per cent prof
it on his investment Now which Of these two is a
"neigh6or" to his fellow-man? Yet where he who
thus makes from 10 to 80 per cent. profit on his
capital pays tax to the State of trenty:tour cent
six dollars being all the interest received the
other, who by his investment enables fellow-citi
to borrow at six per cent interest," and gets bu
eight per cent. profit on it. is compelled to pay tai
of one dollar and seren cents This is not an mag
mary case, but one "copied from the records ane
of every day occurrence.
Much more might be added that would show thu
unequal part which banks are required to contrbut,
to the support of the State but it is believed tha
this is sufficient and that Legislators need only t.
have their attention respectfully called to the sub
ject as is here attempted for them to perceive tina
in justice, banks ought to be taxed as other divi
dend paving corporations are, viz: on their profit
only. That would be what no one should object to
EQUAL TAXATION.
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