, 1863-01-14

lack Of fpositiye power, that inventive faculty,
the atlaptability aud exhaustive insight Of
genius in Sherman. Let some one be sent to
Tcplace him.
~
TAXATION OF BANK NOTES,
-
e,...., ofro, rohn shsr,,an. ne,,vx
spee crrd - ~ a fSc Senmfe. T"n' q. IssS.
----
On: motion OF Mr. Sherman (Ohio}, the
bill to tax bank notes anu fractional currency,
was taken up, and he proceeded to address the
Senate In favor OF such taxation:
Mr. President-1t may be difficult, amid
the exciting events Of the day, to gain the at.
tention Of the Senate to q question purely Of
q business character: one that Is dEy,
full Of details and difficulty. But the cur
rectiy affects Ill tic interests Of LIE, and Is
now SO important to the national safety, that
it must receive from Senators the most an1~
ious consideration
taxed: This proposition las been twice urged
upon US By the Secretary Of the Treasury,
AFTER full reflection, and with the great respon-
sibilitfcs Of office upon him:
1t was proposed to the Senate at the LAST
1ession, but postponed rather than defeated
that can be adopted Il must be definitely
determined, and upon Its decision rest many
other questions Of finance that. can be adopt
ed. With view to takc the sense OF Congress,
he had submitted short blu. presenting IN
two sections the whole question. The first
provides for an annul tax Of two per cent
on au bank bills circulating as money. The
SECOND provides for tax Of ten per cent on
Ill notes under one dollar, commonly called
shinplastcrs.'
and importance Of this legislation, and would
state as clearly and briefly as he could tile real
sons for this conviction.
They must keep In view the distinction be-
tween banks Of circulation and other banks.
Banks Of circulation are mere creatures Of
! law Their privileges and Issue bills is in its
Ing can be carried on without chartered privi~
1egct. This privilege is not at all necessary
| for the business of banking.
The largest banks in this and other coun~
| tries do not issue notes. The Bank Of Com
culation of less than $300O, The Eamou
banking houses of Europe, tho Rothschilds,
Barings and Peabodys. issue no notes. The
| bank of England has two distinct depart
ments, the one attends to the business Of
banking. the other issues notes. The
portion to capital. aud = vet an obvious and IN Ire rc-
1narkablc distinction il made bv opr tax laws
| IN favor Of hanks of circulation md aeainst
| banks Of exchange and dcposit.
Tie business Of banking proper Is heavily
taxed Stamps must be attached to every
commercial ln1sanmehs, nGtes, cneeko, ot'
every form Of commercial paperis taxed, and
vet there Is no tax on bank bills, Bank notes
arc specially exempted from the stamp tax.
WhF is thiss If d 'priyate banker issue. his
note, he must attach stamp: he must nav r,
Interest IN Il Il Ike morevis invested Il
cn.nmarc;t a. o+bar ,,Hrsn;ts !, !. +ha, +sra5 -
and his nrofIts are taxcd Why shorId Il nofl
hc "a With f,anE notcs W. TN almost e-rv
snployment of lifs with license tax; but
fso.,a tanh7 - ,;na ate iApl1sssls Sa,eplca
lron u llcehse. InEa1e D1nks ana bankers,
~ WY nase ~ ~ euaItGse1 a. PslsLeges nass 10 pay
ecnss, anu ~ o1nhs q eitsuia15on IH;Io are aH
plsssI eSsnpIGo' Mny ls ,nls: WY shoalo
a eaat.etsa 9anh, H. w3ha eaeaaslse pTaslleges,
oe exempted IRON IRON the burdens We nave put
apo1' pfIta1G@ @ pa.As; anu ~ utnes e pussss
No uA y llnposeo on pauhs VI c1leutatlonn u
nd an th:t f. @ IaJa tnge pes eth' ~ On es
b'tS. 1. "nm ~. T. 70 4sunca nom .ne S.ocA 1s
tsa nolusa a:,,+s us ~ - aI ~; OILY u
tfom eesa ~ ~ ~ uuass ~ =
tt9n. - osns M 1ssaes ;:t ons nunalea a a0lIats N
th,. pa3a ~ nt -utsas ~ ens nuoHe, anu
NUS atws nsI pfoht on Tue cntiFe issue o.
ao1 o1 eEs assoa, Imam I'VE PEE cent on tas IL pays
esn3nns n 80 oes;', ae uetp utact rl nasn.
ha luz paper ,la money m 81 tae @ pank; ne Pays me
ts Da1A ia1efest o1 slN 10 zen per cent. ne pays
three per cent. on the entire product Of his
1ooE ailo hheh HaSs thTee per cent; On MS
gross pfohtss out OF the balance nc must
Afg;
me oank only pays thEee per ccnt. On tue
| nv pfonts; ahu IS eaeMpsea rom ~ other
c..; ea1ss: 10 .als un1oe11' just ana equal mode
Oh @ 5aSation:
nat, oanAs T.. siicn1nsaoa FAJ iess euau any oluef
~ ,s. Jus pa5 snsee per SeMs. On
sns k.vSs lceelp's tsom passenSets, insurance
sot1!s sotao, ~ % wy Pss ssn.. W 'ae Ra9ss r.
~ .h-ea ~ p+ pva ~ ~, ~ Iap
49, ae ~ pa' - ~ Scn.1 " eus s.oos pay
~ sena.o.s, "tlaou. Gsuastaon iol oul asees-
ea.y cApensso. Maeo psl ceu..
~ gloss ~ pseoue'si Rl1saLc PeLsons, taIes 90
~ ~ pr1at;na : " a t ts gloss lueont Ganas
snco,,,.s and ~ H. eSP ~. " tIsl nes
teonG f y anu ~. = aeouetco 1fon toen
Thcre m ~ ~ roaenas .1E- bowl. o< .,,on,.,;o,,
stou.o s4S's mow Ra} mgner rate OF taxat1on taah
orasss> ~, ~ ,,.ina.a tia a Ths ~ ~
.,,1tsts 49, lug 49, nus!ree1 ~ aho wv ano nes
o1 t,ar caat Tb.i, t1nae ~. 5sai WEE ~
.cIa{ X tba sr.nans,on ~ az
Th"v arc thor"fnr, iatter ,his teras
VIA, +fav Iar;ra thair nras{s ~ 19s 1ssn
wade hV H., ,,,'h1c 81 XII ~ =
"a raescygahIa hat +ha1 ~ .ta,.p 10y I,;J
a,,,.i7S ~ sat sr;. ,i: 49s Hh
tTa.,,eo,ra. X -, r,.a.s..f. ~ .A.A 80.
themselves o1 the suspension Of specie pay,
Menta 10 largely increase their issues, ana
| mus NJ once dcEange the currency ana make
| hlge piohts "atAout corresponding rask
anu pufaen;
u Is SAID thIs tax lnterIcrcs Win vested
IiEhts, put II oots no more taan az new taxes:
az 1axes are imposed @ 70 maintain i.n a. vested
chise OF corporation y no more scored than
| the property Of an individual. 4 State may,