Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1864-05-05
CONGRESSIONAL.
EXTRACTS FROM SENATE PROCEEDINGS

The consideration of the bill TO provide national cur
rency secured by pledge Of United States bonds and to
provide for the circulation and redemption tnereo came
| up the special order. 49,
The pending question was on the FINANCE commuters
amendment imposing tax Of half per cent on circulation
quarter per cent deposits and quarter per cent on
capital beyond that whh is in State bonds but providing
that States and counties may tax the shares
of bank held by individuals corporations the same as
| other private means. .
| Mr.. POMEkOY moved an amendu emit, which provides
that nothing n this act shall be construed as excepting
capital stock of association beyond the amount IN
vested in United States bonds and deposited with the
of the United States part Of its capital or as
security Of its circulating notes from being subject TO the
same rate OF State and municipal taxation as is imposed
upon other personal property 10 the state CITY or town
| in which the association is located.
Mr. PoMERoY explained that the effect OF this amend.
ment would to allow States to tar all capital except
that put into the United States bonds capital OF the
bsnks He held this to be iu keeping with existing law
Mr. HOWE opposed the amendment, urging that the
States had no right tax the Government bonds aud to
them capital Of the banks would prevent their or
ganxation. am.
Mr. COLLAMER said that by the terms Of the United
States oaus aud bonds not to be taxed by the GOV
ernment but there no pledge as to State taxation
He held that the tax upon the shareholders of bank
not tax upon the stock of bank 1t had been so dec-
ded by the courts He did not, however, know how the
States to get along with one source OF after
another drawn away from them and monopolzed BY the
General Government 1t not the princlpe on which
this Government set out The only exception IN behalf OF
the United States was IN regard TO the dues on
not as revenue measure but for the sake OF uniformity,
az the different States would have laid different duties
The source of taxation should be in common.
Mr. CHANDLER supported the amendment, arguing
that the Committees proposition would kill the bill He
said we were not selling than half enough ten forty
bonds to meet the daily expenses What could be a
greater nducemen for Investment than to that they
houd not be tsxed7 He believed the Government had
the power ITSELF and this was necessary measure
to that end. ss 49, 49,.
Mr. JOHNSON said that, however he might wish to
the Government of the United States he also
wished ~ preserve the Governments 81 the States The
latter had the power Of taxation and in the formation OF
the Constitution there was no conception Of that power
save as indicated by the gentleman from Vermont He
did not know what Mr. CHANDLER meant by his be.
ing free from the disease Of the Constitution on the
brain but if he entirely free from IT, No mas renewed
himself from the obligations he assumed here but II ne
only meant that he would give liberal construction to the
Constitution they probably agreed in opinion This war
is not at end and it 10 the womb OF time when IL VIII
be- and what will be the amount of debt to be incurred by
it. He opposed the amendment OF Mr.. PoMERoY, be-
he believed 1t mpolitic at this tme State as
we'll National Governments were to be preserved and
their reputation must be kept untarnshed
Mr. SUMMER cited the decision OF Chief Justice Mar
shall in the case of Mccullough, in Maryland declaring
the State tax on the United States Bank void.
Mr.. FESSENDEN replied that that case had no appl
cation to the present bill.
Mr. CLARK made an earnest speech against the amend
ment of Mr. PoMERoY, being calculated to Interfere
with the State banking laws and to array the banks OF
the States against the national currency.
Mr. LANE of Kansas said that, except for the present
emergency, he would scout the idea of Unted States
w.
measure because his friends thought 1t necessary one 10
these times Of and because he would do every thing
to support his country.
Mr. COWAN favored State taxation upon these banks
and opposed the amendment briefly.
Mr.. JOHNSON said thousand dollars 10 gold would
purchase eighteen hundred dollars in currency and on
that amount invested in United States bonds bearing an
interest of per cent with the principal and interest
payable in gold bank loan this eighteen hundred
dollars to its customers, aud while will receive one
hundred and eight dollars interest the representative of
that eighteen hundred dollars in the bank in bonds bear
ing interest The rate the original Investment will
then be twenty per cent two hundred and eight
dollars per These banks also authorized In
the bill within proper limits to loan their deposits to
their full amount receiving six cent; aud the aggre
gate amount Of interest s to be added to that just stated
This being the financial operation OF the BILL all the st To
capital will inevitably into tbese banks 1t was
mistake suppose that the credit of the Government de-
ponds alone upon its ability to meet our national obga
to meet theirs. II unable to meet our State obi
cations it will be certain to produce inability on the
part of the General Government to meet it.
The amendment OF Mr. PoMER0Y was rejected by the
following vote: 1853
YEAS-Messrs. Chandler, CONFESS, Harding Howard,
Lane of Indiana, Pomeroy, Ramsey Sherman Sprague,
NAYS-Messrs Buckaey Carlile Clark Colamer, Cowan,
Davis Dixon Fessenden, Foot Foster Grimes, Hale, Har
McbonpaI Morgan. NORTH, Nesmith Powell RIDDLE, Ten
Eyck, Van winkle Wiley, and Wilson-2s
Mr.. HOWARD offered an an endment to the commit
tees amendment providing that taxes imposed the
market value Of shares by State authority for State or
other shall be in the State where the bank is
situated which amendment rejected by The follow
ing votes e 'HHs -
YEAS-Messrs Chandler, CONFESS Harlan, Hendricks,
Howard Morrill, Pomeroy, Ramsey, Sherman Sumner and
Wilknson-l. Ee
NAYS-Messrs Anthony, Buckalew, Clark, Colamer,
Cowan Davis Dixon Dooittle Fessenden, Foot, Foster,
Grimes Hale Henderson, Howe johnson, Lane OF Indiana
Lane of Kansas Morgan kesmh, Powell Riddle Sprague
Ten Eyck, Van WinkIe Wiley and Wison-2L
The amendment Of the Senate's committee, taxing
banks, was passed. 1t provides:
In lieu Of all other every association shall pay t.
the Of the United Staes in January and Juy
duty oHehaf o. per mt each halfyea- from and
after January 1884, upon the amount Of It's notes
in Gil Gu alton day Of quarter Of cent
each half year. azores Id the amount of It's
capita stock invested United States bonds" ar II
After prescribing the Of collecting the tax, and
afixng penalty of Two hundred dollars for each default
in it's payment, it is further provided
Tnat nothing in ths act shall be construed TO prevent the
market vaus of the shares in OF the said associations
in the valuation OF the personal properly Of such psrson
corporation in the ent OF al taxes sed by under
state authority State, county municipal purposes ont
not at rate than 10 ed upon Other moneyed
hands of individual citiz oh State. And
ali tn emedies provided by st laws for the lection Of
nothing this shall exsmpt tie ea etts of associations
from either State municipal taxes to the
tent oordng value other real estate is taxed
THE AUXILIARY MILITIA FORCE.
Mr. FESSENDEN, reported, from the Finance Com
If dollars for the volunteers called out for hundred
dsys with recommendation that it pass.
Mr. HALE opposed the measure. While he would
800 nubIc faith with every man called out by the Gov