The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1865-12-25
Decision OF the secretary OF the

NEW YORK. Dec. 23.-The Treasurer
of the United States has addressed a
letter to Messrs. Andrew T. Hall and
others in this city, which contains an
important decision relative TO the undi-
vtded profits of National Banks. BE
says:
Under the provisions of the 2lst sec
ton of the National Currency Act, 1
have deemed it my duty to require to be
included among deposits subject to the
duty, the undivided profits Of bank.
1t has been always clear to me that
profits should pay duty under this
section. The question might be raised
capital. 1t appearing to me that they
were more in the nature of deposit
than OF capital, have directed that
they be so clasSed. The duty on de-
posits and on capital is fixed at the
same rate, so that it being decided that
profits We're to pay. duty, the duty
either hand would be the same in
amount with the exception following /:
A few banks may possibly own United
States lands in excess of their capital.
In case profits were classed as capital
they would be entitled to deduct such
lands to a greater extent than they now
do. With profits classed as deposits. it
is not probable, however, that there are
many banks that would be the gamers
by the different constructions.
The Commissioner of Internal Rev
enue CONSTITUTES the law under which he
acts to require him to obtain date from
all banks, national or State, of the
taxes on dividends and surplus, and
also to exact the license fees required
by the same act, while it is true that the
national currency act in providing for
the same annual duty, specifies that his
duty shall be in lieu of all existing
taxes. 1tso happens that this provision
Is not applicable to the Internal Rev
enue act which had been a law suisse
quent to the passage of the national
currency act. 1 desire to state that /
have heretofore, on several occasions,
had opportunity to say, both verbally
and by written communication, TINT
public policy requires that the surplus
fund of a bank to the extent, say OF 20
per cent. of the capital, should, under
certain circumstances be exempt from
all duty this year, am pleased 10 know
has the concurrence of the Secretary of
the Treasury, of the Commissioner of
Internal Revenue, of the ComptrolIer
OF the Currency, and of gentlemen in
Congress who have given the subject
their consideration. 1t is proposed,
therefore, by the Commissioner of In
ternal Revenue and myself, that ut
some early period in the session meet
ing be held of the officers named, in
connection with members of the Conn
mittee of Ways and Means, and of the
Committee on Banking and Currency
of the House of Representatives, before
which committee and matter relatiyetO
banks will probably come for consider
alton, and It is most likely that the re-
suit of such consultation will be the
recommendation to adopt by Com
gress, to provision exempting from
duty or tax surplus funds to the extent
named, at least to such an extent as will
greatly strengthen the banks, by en-
couraging the accumulation or reten-
tlon by them of surplus, and in regard
to the matter of daily settlement can
only say that the present requirements
now adopted by the Internal Revenue
officers, and by this Office after a very
full consideration of the subject, and
that the method of making returns OF
deposits required by both Offices, that Is
the balances on hand when the books
of the bank are closed for the day, has
been deemed equitable and just.