New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1864-11-28
Reply Of she Treasury Departments 10 the
National BANKS.


Of the National Banks in tbs city OF NewYork against
the imposition Of license under the excise law OF
June 30th last.
1t Is urged that 1.-THE national currency act Was In
tended bs perfect in itsefhat 1t defines all the pow
rights and privileges Of institutions formed under
it a. well the obligation liabilities to which they
shall be SUBJECTED" that the certificates OF the Con
,ler author ling them TO commences their business arc
their sufficient license and that the ls section OF the
act expressly provides tina, the therein prescribed
shsl be "in lieu Of all existing taxes"
Tire license Law. however. attempts no prohibition.
s policy rather tho encouragement Of all the various
branches pf industry 1t recognizes Suppression Of bns
ness would work the reduction Of The license
aI j. but charge upon rsr.ons engaged In certain
pursuits whether undtr special legislative acts or the
broad guarantees Of tie Federal state Constitutions
Reasonable tan it0n IL prohibition does the cur
rcncy set In letter spirit exempt associations avail
ng themselves 81 It's privileges from what Congress
shall aferward regard their duo proportion OF the
public burden. The first currency act WAS approved
in February is6J and probably inten-od 20 DO al
perfect IN itself the present ono vet tho seventh sec
ION Of the Act to provide ways and means for the
support Of TO Government passed in the following
month, incrosssd the taxes imposed by i.
Hundred, Of National banks we're now organized but
tar laid upon their capital until the recent act
ofJGne 3D. which increased also the then eItng tnh
upon their circulation and deposits. All this was NOT
regarded affecting their privileges granted by the
earlier statute parity Of reasoning can the compar
atvely light tai IN question be so considered.
The language NJ section ~ Of the excise law is Ell
pot and comprehensive Ii embraces all banks moor.
pora,ed otherwise and all persons, firms or compa'
ues doing a banking business. with Tire simple eIcep
ton Of savings Institutions The currency act had
been approved nearly month when this section became
law. No exception vas made in favor Of National
banks but BY the l73d section al acts and parts vi
acts Inconsistent with this section were repealed ~
M, part <ist section Of the currency IN
consistent that repealed Besides. the taxes for
vhon those named IN the Slst section were In leu
we're then already "eristng" taxes. those imposed by
the law Of later date could not have been in
Guided. Indeed II might be urged that the word EEK.
isng" was expressly used forbid objection Of this
sort to subsequent taxation.
1t said, however. that the currency and the revc.
nue. bills before Congress at the same time; that
generally supposed that the latter would first be-
law and that the provision alluded to lin hon
of existing taIes In the bin last passed would prevent
tho assessment Of national banks for licenses It's but
just 20 Congress however TO suppose that II did pre-
csoy what intended 10 DO. But H. for any reason, II
failed t. DO It Is not competent for this Office to over
ride suspend a clearly expressed provision of the
laws IL hss passed. Upon other grounds too am per
shaded that the proper construction u this provision
limits ts application TO the tar upon capital circulation,
and deposits II ia found only in that seetion " the
currency oct which le,ies these taxes and the CORES
ponding section Of the excise law Section 10 provides
that the tar assessed therein upon capital circulation
and deposits shn not apply 20 associations taxed under
and 10y virtue 81 he currency act The taIes under
law payable tho Treasurer Of the United States
those under the other TO the Commissioner Of Inter
nal Revenue and tie double taxation Of national banks Is
guarded against by express provision. See 100 Of the
excise law leyes TAI Of iye percenum upon all dvi.
denls and undsirbuted earnings OF all banks. There
Ia exclusion Of National banks IN the 10th section
above referred 20, but il will not be argued for mo-
ment. imagine that 1t was ever designed that they
should DO relieved from this taxation. Yet IL diff
cult TO how tho construction which would eI'
ept them from the operation Of the 18th section Of the
statute woud not them also from its l2Oh section.
II they not subject to license duty their dividends
and additions 10 surplus arc free from taxation. They
are as have stated shielded BY namo In the excise
law from what were otherwise tax upon their capital.
circulation and depostsi and for the reasons have
given constrained ~ believe them subject 10 as
sevment for license
In reply to your remark that 1t cannot DO that
Congress intended TO subject National banks to dis
advantage and to further appeal based upon the as
sumcd idea that In the construction have given to tho
law greater burden Of taxation Is placed upon Ma
tiona than State institutions would simply say that
In tho only two particulars In which tho taxation Of
these two classes Of banks differs the advantage Is with
the former. State banks make monthly payments upon
tkoir capital circulation and deposits, while those IN
der tho currency &c. make only semi.annus returns
State banks too pay onesiIth OF one per cent upon
the excess Of any Of their circulation above their
age for the six months preceding July l, 1864. tax
from which the National banks are exempt. These
fact however are not material here 1t IA not for this
Office TO say whether the shall be largo small
alike OF different These things lie only in the determ
nation OF Congress- which has simply authorized and
instructed this Office give construction aud efficiency
to what IL shall find in the statutes. AN. Sir. very
respectfully yours,
L. A. ROLLINS. Deputy Commissioner
p c. CALHOUN, esq. Vice. President OF Fourth
National Bank. New.Ycrk
HrroRrrD sosTHsN Taibusn
SATURDAY, Nov. 70, iehf.
AsIIES.-Thr usrket ia stall unsettled and prices are
nominal at s .Jdsll 62i for Pots. and sI2al2 10
FOR Pearls.
BEESWAx- hear Of no sales; prices are nolni-
nal.
COTTON-The inquiry has been only limited, and the
market in lower closing dull and henry at 81 2ed$l 10
for Middlings; sales Of about 800 bales
COFFEE-We hear Of no transactions to-day, but |
there 10 no essential change IN prices.
CaNDLES-Adspsntins 1e steady ard In fair 70 !