The gazette and Democrat. (Lancaster, Ohio) 1860-1860, 1860-04-19
lFFom the Ohio State SouTnal,
Bank TaxatiOA.--'rhe Present state Of the
Question.

COu IONoNoy kOhb Ou OSb"oou NAO ~ |
thori'ies Of the SIates and the Banks in
relation tO the rate al which the latter
should be taxed on their earnings. In the
present year but q small portion Of the
laxes assessed or the Banks have been
paid into the Treasury. We find by the
Audno, s Reports h since 1850 the fol
lowing sums We been paid into tn Treas.
ury by the B inks, viz: 10 1850 $56. 36,'
So in 1851, S54, ,484.S4. In the four
r'lowing years no axes we've paid. In
1853, the Auditor called the attention OF
tie Legislature to the fact that but few
Of the Banks had paid the taxes assumed
against them under the act Of April Sd,
1859 and he inumated that the delin-
auency betokened the ex stence OF con-
spiracy 10 tran pie upon and override the
authority which gave them their corpo-
to exis'encc. h stated that the pro
yi,ions OF the las under which Bank
u operIy is taxed are demonstrably as
Just an equal as Il ose which apply to
m hants, brokers, manufacturers. &c.
I he Banks resisted the payment Of taxes
der th- act Of 1852, and contended that
they should b. taxed only at the rate
provided ,or in the general law under
which they were chartered. The Supreme
Court Of Ohio in 1853 decid, that The
law of 1853 was valid and constitutional;
but this decision was reversed by sub
s auen, decision by :he Supreme Court
of the United tat-s. While the matter
was 10 controversy in the Courts, no tax
es were paid by the Banks, but 10 1856,
they paid into the Treasury as taxes due
prior 10 Nov. IS, 1855. $3.50, ,961 80; in
1856 4,444, 40; in 1857. $29, ,84:, ,92;
in 1858. $793 o. in 1859. $9l,6s3.67-
or yearly average 10 the last ten years Of
l$38, 1884 55.
We subjoiu the substance Of the decis-
ion by The Supreme Court Of the State in
1853, and the substance Of the subsequent
decision by the Supreme Court Of the Uni
ted States:
The Supreme Cour. Of Ohio in 1858
decided (Exchange Bank Of Columbus
vs.. Hines hat tbs tax law Of April l3
1859. is valid and constitutional in the
bpsis it provides for the taxation Of banks
, bankers and brokers, and that said tag
) law, although it prcscribcs a different
mode and greater rate of taxation than ii
. provided for in ue 6OIh section of tn.
bank ny law of l845. is not repuynant To
the constitution Of the Unitai s, ,atss, II
held hat the manifest effect Of the consti
, lutional provision 8 to make property The
5 basis and the sole basis of taxation. Aud
= the object being equality and fairness. i
3 requires. by true iCIerPretaion: LIST
3 That the taxes hill be assessed on all
/, property, except the subjects of the spec
; fled exemptions; I'd. That the taxe'
shall be assessed on all property bys uni
fOrm rue: and Sd. That all taxable prop
erty shall be taxed AZ its true value IL
: money
his decision was reversed by the Su
preme Court OF The UniIed States (Dodg'
os Wovlsey) which held that where th'
State Of Chic, chartered q bank IN i845
d in which chatter was stipulated tie q
8 mount OF tax which the bank should pa,
q IN lieu ofall taxes to which said cpmpa ,!
o nr the STOCKHOLDERS thefeot, on account u
. stock owned therein. would othe. wise b
o subjec,; AID in 1855. the Legislature
8 pa ,sed an act l'vyng taxes upon tn
= bauk to greater noun an founded up
: ON a diiTorrn, principles; This act is II
. oLilict with he Constitution Of tie Uni
tod States, ns imp ,iriug the Obligation u
Vt contract and therefore void. The fac
y that The people tie State had, in 1851
ad0p cd q new Constitution, in which
o Wa. dec.ared mat taxes should be impO
II sed upon banks in he mode which the &C
j. o. 1853 purporr to carry ou', cannot re
d leas+ the Sl,te from the obligations an
d duties imposed upon it by the consti'u
llon of The Uniled States" .
q On the 5h Of April. 1859. the legisla
u turs passed new law on the subject ,
y bank taxation, by which it is made tn
u duy Of the President and cashier Of eve
J. ry bank 10 make out and return unde
j. oath, during tie month of May annually
J. u writ on statem Ut. Containing lat, tn
average amount oil notes and bills discount
= ed or purchased by said bank, whicl, q
J, noun shall in, lude al the loans or di.
IL coun Of su b bank. wreth origina
10 made or renewed du ing the yeaI, and e.
y the average amount OF all moneys, effec:'
- or dues Of every description belonging t
+" suoh bank, loaned, invested or otherwis
70 employed with view to profit. The 63
y secliun provides that in case the presider
= and cashier refuse or omit to make th
'F sta .emeut required. tho Auditor OF Stat
u shall ascertain the amount so required |
. b. returned, from the last quarterly re
's turns made to his office, to which SUI
o. shall 90 added fifty per "ent. and it
u made the duty oil the Auditor Of State
o. assess thereupon the amount Of taxes re
y y quiroi by the act, On the 2oIh of d.
- - cember 10 each yeal. it is made the dul
~ Of h. comptroller to draw in favor Of III
u l. Treasurer Of state upon each bank for th
u, amount OF taxes so assessed, which dra
~ shall DO made the duty Of SAID Pres
o dsul or Cashier to pay forthwith into th
:" - Treasury. In default Of payment Of sal
70 " draft on or before tie 3lst Of Decsmb'
y any year, the -asurer Of State is requi
ed to no ify the Attorney Gen raj thereo
Q who shall thoreupon proreeo in the 81
AT prcms Court Of the State. against Il
a 8 id SPre4i silent and Cashier by mAndan
r us to compel tho paymeu. of the said tai
Of es, or he may, At his option. commen,
ID a civil action against the President on