Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1865-12-25
HmPorlan.. 1ecIsIon by she u =.

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| NEw YORK, Dec. 23.--The Treasurer Of
the United States has addressed letter to
Mr.. Andrew L. Hall and others, Ia this city,
which contains an important decision reIa-
tive to the undersigned profits of national
banks. He says, under the provisions Of
the 4lst section OF the National Currency
Act.I have deemed 1t my duty TO require TO
be included among deposits subject TO the
duty, the undivided profits of bank. 1t
has always been clear to me that profits
should pay q duty under this section. The
question might be raised, should they pay
as deposits or as capitalp 1t appearing TO
me that they were more In the nature Of
deposit than of capital, have decided that
they be classed deposits. The duty on de-
posits and on capital is fixed at the same
rate, so that 1t being decided that profits
were TO pay duty, the duty under either
hand would be the same In amount, with the
exception of the following: A few banks
NAV possibly own United States bonds in
excess Of their capital; In case profits were
classed as capital they would be entitled to
deduct such bonds to a greater extent than
they now do, with profits classed as depos-
its. 1t Is not probable, however, that there
are many banks that would be the gamers
by the different classes, The Commissioner
Of Internal Revenue continues the law nn-
der which he acts to require him to obtain
payment from all banks, national or State,
of the taxes on dividend surplus, and also
to exact the national fees required by the
same act. While it is true that the Nation
al Currency Act, In providing for the .mi-
annual duty, specifies that this duty shall be
In lieu of all existing laws, 1t 30 happens
that this provision Is not applicable
TO the Internal Revenue act, which became
law subsequent to the passage OF the ma
tional currency act. | desire TO state that
have heretofore, on several occasions, had
opportunity to say, both verbally and by
written Communication, that in my opinion
public policy requires that the surplus fund
of bank, say to the extent Of twenty per
cent, of the capital, should, under certain
circumstances, be exempt from all duty.
This view,I am pleased to know, has the
concurrence of the Secretary of the Treas
uary, of the Commissioner Of Internal Rev
enue, OF the Comptroller Of the currency,
and Of gentlemen In Congress who have
given the subject their attention. 1t is pro-
posed, therefore, by the Commissioner OF
Internal Revenue, and by myself that at
some Early period In the session meeting
be held ofthe officers named. 10 connection
with members of the committee OF ways
and Means, and of the committee on bank
ing and currency Of the House of Repre-
sentatives, before which committee any
matter relating to banks will probably
come for consideration, and 1t Is most
likely that the result of such consultation
will be the recommendation and adoption
by Congress of provision exempting from
duty or taxes surplus funds to the extent
named, or, at least, to such an extent as
will greatly strengthen the banks by en-
couraging the accumulation and retention
by them of surplus. In regard to the mat
ter OF daily settlement, can only say that
the present requirements were adopted by
the Internal revenue officers and by this
Office after very full consultation over the
subject, and that the method of making re-
turns of deposit 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.