Evansville daily journal. (Evansville, Ind.) 1863-1866, 1865-12-25
Int VERY LATEST
IT e ELEGR R a p H.
Undivided Proafs OF Banks

4
| New YoRK, Dec % The Treasure
OF the United States has addressed
letter to Messrs. Andrew T. Hall an
others in this city, which contains al
important decision relative to the undi
vided profits of National Banks. H
! says: Under the provisions of the Ais
section of the National Currency Act,
have deemed it my duty to require t.
be included among deposits subject Il
the duty, the undivided profits of bank
It has alwaysg been clear to me, tha
profits should pay duty under this sec
| ton. The question might be raised
should they pay duty as deposits o.
capital r disappearing to me that theJ
were more in the nature of deposit
than capital, have directed that they
be so classed. The duty on deposits
and on capital is fixed at the same rate
so it being decided, profits we're to pay
the duty under either, and would be the
same in amount, With the exception oi
the following: -
A few banks may possibly own United
States bonds in excess of their capital.
In case profits were classed capital,
they would be enabled to deliver such
bonds 20 8 greater extent than they do
now, with profits passed as deposits. II
10 not probable, however, that there are
saving banks that would be the gamers
by the different constructions The Com
missioner of Internal Revenue construes
the law Under which he acts, to require
him 10 obtain payment from all banks,
National and State, on taxes on dividend
and snrplus, and also to exact .license
fees required By the same act.
While it 10 true the national currency
act, ia providing for the semi-annual
duty, specifies it his duty shall be in lieu
of all existing taxes. It 80 happens
this provision is not applicable to the
Internal Revenue act, which became a
law subaequent to the passage of the ma.
tional act. Idesire to state that have
hereto ore, on several occasions, had op-
|p0rtunity to say, both verbally and by
written communication, that, In my opin-
ion, public policy requires that in sur
plus funds of bank to the extent say
OF 20 per cent of the capital should, un-
der certain circumstances, be exempt
from all duty. This view, / am pleased
to know, has the concurrenee Of the
Secretary of the Treasury, of the Com
missioner of Internal Revenue, of the
Comptroller of Currency, and of gentle
men in Congress, who have given the
subject their attention.
IL is proposed therefore, by the Com
missioner of Internal Revenue, and by
myself, that ct some early period in the
session q meeting be had of eofficers
named in connection with the Committee
of Ways and Means, and of the Commit
tee Of Banking and Currency of the
House, before which com mittees any
matter relating to banks will probably
come for consideration, and il is most
likely that the result Of such recommend.
alton and adoption by Congress of pro.
vision exempting from duty or tax sur
plus funds to the extent named, or at
least to such an extent as win greatly
strengthen banks by the accumulation
and retention by them of surplus funds.
And in regard to the matter of daily
settlements, can only say the present.
requirements were adopted by the In
ternal Revenue officers, and by this of.
iice, after full consideration given to.
the subject, and that the method Of
making returns required by both offices,
that is, the balances on hand when the
books of the banks are closed for the
day, has been deemed equitable and
inst n. 8rs e IA