New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-12-06


United States has hitherto extended over tho ma
tlOnal securities, no matter by whom or Tor what
pur pose held. Is now sought 10 be wrtsted from
liz hands upon the theory OF state )urisdlctlon-a
fragrant violation OF the contract entered INTO
with the public creditors under the clearest en-
actncnts OF law, and the most binding obligations
of public faith II Is conceded for the most part
by the advocates Of State TAXATION mat the
United States stocks in the hands 0f lndiViuuais
cannot be- assessed for State anu milnlcIpai ptr-
poses But discrimination against Tue stochS
held by banks Is sought To BE- established, on Tue
ground that tax imposed upon the shares IN
bank IL not tax upon the securities represented
by those shares. That The position assumed py
those who favor this hypothesis VIII be iO1ho'
upon critical examination, TO be 1alaciolis can
scarcely admit OF doubt that the discfini.na-
on In favor Of one class Of creditors and against
anOtLcr, both having complied with inc same
conditions. Il grossly unjust. must be OBVIOUS 10
all, That exemption from state taxation was IN
tended 10 apply 10 the stock Issued. no latt'r III
whose hands II might be found cannot DO qlcs'
toned. No exception was made III favor ol InuI.
yidnals no discrimination was attempted against
banks. If the shares Of u bank whose capllal Is
Invested In United States stocks be taxable, 10
whose benefit does the exemption from taXatloh
guaranteed TO those stocks inlre Does tue
principle of immunity pledged by congress pc
come .nOperatige becau.e an association MS
loaned TO the government the money for whicn IL
holds those ObligatiOns' Surely, toe excinni0h
BELONGS TO some person, and to whom can IL De
assigned but 10 the respective stOckhoiucis,
whose scrip simply represents the proporuonale
share which each has c0ntrioulcd 70 inc purchase
OF the government securities. upon the
theory propounded, an Individual VINO par.
cbases one hundred thousand dollars OF
government stock for speCnc pun pose, my
plead and receive the exemption from STATE
taxation which the act of Congress plohges; out
II four persons purchase the like amount lot
nd
the amount he has paid toward the gross invest
ment. they lose ali benefit OF the Immunity AT
Lsched TO the securities In hand. The Injustice,
II not the absurdty. Of such DISCRIMINATION must
be sufficiently obvious.
Nor will the improperly of the proposed taxa
ton of national banks be less apparent, when IL Is
borne In mind thar they are already taxed Dy the
general government 10 greater extent lm'u any
other corporations or class OF business Inc Ia"
OF their creation requires them 10 perform certain
duties and authorizes them 10 exercise certain
privileges, yet for this they must pay q license.
IL imposes, also, q tax Of One-halI OF one per
cent. on their deposits, one per cent. on the'l
circulation one per cent on their capitai oej Qua
the amount Invested In government securities anu
Ave per cent. on their income or earnings. All
this il paid from the ordinary earnings OF oank,
and reduces It's profits 10 the extent OF the taxes
paid, whereas all other corporations, uanuiartu-
rers, &C. are permitted 10 Increase ther rates
and charges 10 a sum more than adequate 10
their profits intact and casting their burdens
upon the public, In the capacity OK consumers,
travellers, DC. ., -. 4,
Ii il not through palpabe injustice to ves'ed
inierests. and by u dsgraceil violation OF puoic
faith that the subject OF State taxation should De
reached II public policy demands "a cOntTiou-
uon 10 State and local expenses at the hands oi
these Institutions, there In Il mode OF attainment
not distant which can be reached without preach
OF national honor. Nearly hTcr-iOurths OF Tue
.l.kt In nil Ar funded n
the option Of the government, within a snort Pc
Rod and almost the whole amount Within tue
next ght years. IL IL within the power vi the
government OIL such time. without violence 10 us
engagements, to Try the experiment OF Issuing
bunds subject To State taxation, or Of borrowing
AT a less tate of interest than IL now paid. thus
extiaguishing It's present obligations 10 lts creu-
itors But every dictate OF expectancy ana JUS
tice, ia character and credit al home anu abroad
demand that Congress and the highest Judiciai
tribunal OF the nation shall frown upon all at
ternpts 10 override the constitutional functions
Indispensable TO the preservation OF the credlt
and stability OF the government.
But as neither public policy nor constitutional
right can AT present allow the taxation OF national
banks Tor State and local purposes, IL would be
equitable that these institutions should pay, say
one per cent, on their capital Irrespective ol the
amount invested In pubic stocks). IL lieu OF all
present taxation Tor revenue purposes, and one
half OF one per cent on their circulation as an lh-
demnity 10 the government for the expense In
cured In furnishing the banks with circulating
notes, and meeting the expenditure lncidehta' 10
the administration Of this bureau. Perhaps a pre-
ferabe method in relation TO the expenses thtls
incurred Tor circulation and supervision would De
found found In waving the tax on circulation ana
meeting the expenditures required oy such direct
assessment on the banks a. should be equitable.
There are some amendments to the National
Currency act suggested by the experience OF It's
practical workings, which, If adopted, would
prove Of great utility, the most important or which
has already been alluded to-reqiriny banks 10
redeem their issues at par In either OF the cities of
New York, Boston or Philad, lphia, as the only
certain method OF securing for national bank
notes a uniform par value in every section OF the
country. and prevent an excess OF issues beyond
the legitimate demands Of business.
penalty should be imposed upon banks for
Issuing notes with the engraved and printed Sig
natures OF the officers. The greatest protection
against CONTRIBUTING Is found In the written Sig
natures OF those through whom the bills are ut
tered. The fact that they are written and not
printed renders IL incumbent on the cOunterieiter
TO attempt an imitation through the same insIru-
mentality on each note. He may make fac
smile Of the signature once but In the very next
attempt make such variation as 10 disclose the
spurious character OF the note. But printed
signature being once correctly Inflated the same
result Is produced ut each revolution OF the press
with mechanical accuracy. Just as safely might
the merchant send his notes TO an engraver 10
have his signature and those OF his indorseis
stamped thereon, as FOR banks TO have Their notes
executed through this process. Unless all posi-
bic guards which ingenuity can devise be thrown
around the currency, II will soon be difficult 10
distinguish the spurious from the genuine issue,
and banks will be rs lii ely to redeem tho former
as those OF their own PRONUNCIATION.
| By the lrst section OF the National Currency
act, the bureau under which its operations Were
to be carried into effect Is made an adjunct of the
Treasury Department, and OF course located ut
Washington. During the inclpiency OF the meas
ure there were many reasons rendering contigui-
| Az, IN M mi