Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1863-01-10
THURSDAY, JANUARY 8, 1868.
IN SENATE.


and fractional currency taken up and he proceeded to
address the Senate in favor of such tsxatin
He said it might he difficult in exciting times like these,
to attract the attention the Senate to subjects OF bust
character dry end full Of details but the currency
the country is sensitive and intimately connec ed
with all the interests of life, and just important to
the national safety that receive the most anxious
and careful consideration. The proposition shall bank
notes, circulating money, be taxed " has been twice
urged by the Secretary of the Treasury after the most
careful reflection and under all the heavy responsibilities
of his Office weighing upon him The question last
postponed but not defeated 1t the vetbue TO and
system finance that be adopted and must be definitely
determined and many other quesios must depend upon
the decision lie had submitted bill, to test this ques
ton providing first for annual tax Of two per cent all
bank bills circulating and second for tax OF three
per cent ali notes under dollar and he was firmly
convinced of the necessity Of this legislation The dtnc
ton between banks of circulation aid other banks must be
kept In view Banks of circulation creations Of
law, and their privilege to Issue bills Is exclusive
This privilege TO. all necessary for the business of
banking TIE largest banking houses in this and other
countries Issue notes The Bank of Commerce. with a
capital of nine millions has circulation Of less than two
thousand. The famous banking houses OF Rothchlds,
Baripg Peabody, and others do not issue notes Tue
Bank Of England has two distinct departmeat;--one at
tends issuing notes and thu other to the regular bank
ing business The weskes banks have the largest circu-
laion 10 proportion TO their capits and yet distinction
made In laws favor of banks of circulation
The business Of banking proper is heavily taxed stamp.
must be attach to every commercial instrument and all
forms Of commercial paper AM yet there Is no TAX on
bank bills We tax almost every employment Of life with
license tax and banks Of circulation are expressly ex
emped from license by should chartered bank with
exclusive privileges be exempt from the burdens we nave
placed upon private banks and other pursuts3 No lax
imposed upon banks of circulation except an Income TAX
OF three per cent nett profits AID that deducted
from the tax oil the stockholdersa moan nsigni
cant tax of only fifteen cents hundred dollars
manufacturer this paper money OF the Dank he
pays stamp tax his note, he pays hcence on his
busness he pays bank interest OF six to ten per cent
and three per cent the entire product of his labor then
per cent on his gross profits out OF the balance be
ma i've The bank only pays three per cent on nett
profits Il this uniform, just and equal mole OF taxation
And there are reasons why at this time banks OF circu
aon should pay higher rate OF taxation than any Other
pursut Their profits vastly increased by the war
their burdens are greatly leened by the suspension
specie payments They are peter aoe 70
rights 1t does no more than any other tax All taxes ort
imposed to maintain vested rights to property liberty and
lite The franchise OF corporation Is no more saciea
than thu property of an individual All objects OF tahaoI
must be left to Congress- and the only Limitation is tina
they must uniform in all the United States The alarm
ing Of bank paper can only be checked by taxa
ten TIE rate proposed may not be sufficient but 1t Ger
tsip ia not too high it will yield about four millions
nualy But he did not urge it simply as question OF tax
alton his objec. gradually withdraw the local banl
paper from circulation with view to establish natona
currency The fret United States Bank placed ex
pressy on this ground and Mr. Madison proposed the
cond bank in order to get rid Of the local bank an'
provide national substitute for gold and silver then draw
i out OF circulation by the war
He referred 10 various historical caaes to show that
could not carried without reverpg to Government
credit the form Of paper money and claimed that pape
money was now necessity; and the real question is no
between coin and paper money, but between natona
currency and the paper OF the local bank corpora ms
Local banks subject to numerous objections Their
are over sixteen hundred banks now IN existence in diner
ent States under every conceivable form Of banking
there il no I'M ormty between them. faipe like tba
! of the Ohio Life aud frost Company goes like pani
through an army The loss on broken bank equa
to 7e per cent per annum aud tGe loss On excnapge an
brokers' notes is enormous, lie claimed that It was i'm
possible To distinguish between the issue OF bills 81 cred
by ID. state which expressly forbidden In the Contr
ton and Ao issue by cprp DratoI created by state
Traury Dotes free from many OF the ooeouon agans
baUk pspsr they Of more general authority they or
less essly cOuDferlsed they may be converted into lb
oouds Of the United saes tey gre legal tender and re
celsable In payment OF public dues.
The circulation OF local banks could be retired witnou
Any great difficulty If national debt unavoidable,
national cursacy must be established with 1t; the wa
currency is as Important as armies snd both must D
Controlled By general authority Every effort stoud b
inside t. nat onaze the whole people by binding them II
gether by comno currency and q common cause Mr.
Jefferson always watchul Of Staterehts declared tha
this country could not msinaln long except by thu
use Of United States paper currency With tbi
rebellion overcome there is lmi: but the will OF TIN
Almg TO the power ard gr ansss Of tbs country
be wss disposed to exercise every and authority
4 granted to Congress 10 put down the rebellion.
! The bill was then referred to the Committee on ri
nance
arbitrary ARRESTS.
i On motion OF Mr. SALISBURY, the bill for the dis
charge Of State prison taken up and he proceede
1 TO address the Senate at length.
He declared that partisan revenge mad governed IN
actona OF this and the iDamy OF their act
would drag them with dsgrrc, down future generations
THIS might be deemed harsh language, but he Claimed tn
right 10 express his honest belief In his opinion thu
revolution ought to fail unless the Government sbous
make that rightl which in the beginning wrong
that it was without cause but the cause was not atucen