Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1864-04-29
OFFICE OF THE AUDITOR OF STATE,l
COLUMBUS, o., April 20, 1854. (

1
COLUMBUS, o, April 20, 1854.
SIR: Many of the Banks of this State have
purchased, and are now holding, Bonds and
Stocks Of the United States Government,
and some of these Banks are claiming ex-
emption from State and local taxation upon
the amounts thus invested in Government
securities. A recent law of Congress ex-
pressly eXempts all bonds and stocks of the
General Government from State and local
taxation, and the Supreme Court of the
United States have decided that such stocks
and bonds are not subject to taxation by
State or municipal authority. But the
Court has also decided, that where tax is
levied by State authority, upon the capital
stock of State or local Bank, and not up
on valuation of its assets, the investment
OF the whole or part of such capital in
Government securities, does not relieve the
Bank from the payment of such tax upon
the full amount of its capital stock.
All the Banks organized under the laws
of this State are required to pay taxes
1st. On the amount of capital paid in, or
secured to be paid In, to be employed in
the banking business.
I'd. On the amount of undivided profits,
arising from their business, whether in its
possession, or under it, control. or loaned,
or otherwise invested for its benefit land
the State Bank and Branches are also re-
quired to pay on the amount of their sur
plus and contingent fund.- sili ssf
Sd. On the amount loaned to or deposit
ed with such Bank for term certain, and
not to be withdrawn ON demand, except
deposits with Bank established as clear
ing house, on which no interest is charged.
These Banks have agreed with the State,
and bound themselves to pay these taxes
They are not assessed upon valuation
Of assets, but specifically upon tine amount
of capital, profits and deposits, without
reference to value or mode of investment,
and are, therefore, under the decision of the
Supreme Court, not entitled to deduct the
amount they have invested in Government
bonds, from the amount of any of the
items they are required to return for taxa
ton.
A still graver and more important ques-
ton has arisen as to the power of the State
to tax the Banks organized under the Ma
tional Banking Law. Fortunately, the SUI
preme Court OF the United States has also
settled the principles which govern the de-
termination of this question. They have
decided that the Government Of the United
States has the constitutional right to char
ter Banks, and that the exercise of this
right Is an act of sovereignty, and necessa-
rily excludes all interference by any other
authority within the jurisdiction of the
United States. That State can not tax
such an institution, because II its right so
to do exists, It Is unlimited, and 1t may so
exercise 1t as to destroy the Bank, and SUI
persede the legitimate powers Of the Gen.
eral Government. We can not therefore,
tax the National Banks as corporations; but
the Supreme Court also holds that a State
may tax its own citizens upon the
stocks held by them in National Banks
and our statute requires such stocks
to be listed for taxation. Each hold
er Of stock In such Bank, who resides
In Ohio, Is therefore required to list the
same for taxation, at its value In money.
the same as other stocks held In Banks, cor.
porations. OF associations, which are not
required by law to list their capital and
property for taxation. This valuation will
be included In, and made part Of the l4th
item Of the return Of the assessor.
Some Of the Banks of this State are IN
sort Of anomalous condition, having dis
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