The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1868-09-10
THE TAXING OF BONDS.


have great deal to say on the subject
Of taxing the National Bonds. They say
that the ''bloated Bondholders' pays no
taxes; that the poor are everburdcned
with taxation and the rich allowed to
escape without paying any taxes what
ever. A few facts will best expose this
shameful disregard of the truth by our
democratic friends, on the subject sof
taxing the bonds.
The bonds of the United States are
held in about the following proportions :
BY National Banks t425,o o 900
Insurance companies f50,000,00o
Savings Banks 2.5,o00,'o0
Trust companies, private bankers, public .
charities Ie,0tD $50
B.ld in Europe 600.o0oo00
Total &, 800, 00G 900
Leaving about $500, 100000 in the
hands of private persons in this country.
The bonds held in foreign countries are
beyond the reach of domestic taxation.
The 81 900, 600 Of bonds held by cor
porations all pay State taxation. The
capital of the National Banks invested
in the national bonds paid or was asses
sed, according to the official returns of
1867, the sum of $18, 1888, 43l of taxatian,
Of which So, 525, COZ was collected by the
United States, and sS,8I2, 1913 by the
several States. The shareholders of the
National Banks of Ohio, Illinois and
Indiana, though their capital is invested
IN national bonds, were assessed for taxes
in 1867 for state and local purposes to
the following amounts: Ohio, $500, 95l
Indiana, S20O,572; Illinois, S23l,9
Total, 1888, $40 And this for less than
$4,000, 900 of bonds
The capital stock of the life, fire and
marine insurance companies of the United
States is invested in national bonds to
the amount Of $3.50, 900, 900, and each
State collects It's tax upon insurance com
panies according to their capital. We
have not the figures showing the State
revenue for taxation upon insurance com
panies, but that portion of the capital
invested in bonds pays exactly the same
rate of taxation paid by capital otherwise
interested.
A saving bank in Rhode Island whose
deposits were all invested in national
bonds resisted payment OF the State tax
on that ground but the Supreme Court
Of the United States has affirmed the de
cision of the State court, which had de-
clared it to be taxable and the savings
banks henceforth pay the same State and
local taxes on the deposits invested in
1925, 900, 900 OF bonds that they would
have to pay if invested in any other way.
Trust companies and private bankers
whose capital IS kept invested in these
bonds pay the same State and local tax
thereon that they would have to pay
were the money otherwise invested.
Here, then, we have the fact that 81
10000 of the national bonds now pay
the loyal tax upon their full valuation,
equal to any other property, and thai
portion of them held as the capital of the
National Banks alone yields to the sew
eral States, annually, tax Of IS, Sl2, S23.
The bonds. we have shown, are held
in the proportion of 81, 800, 900, 600 in
the United States, and $500, 600. 600 in
foreign countries. The bonds held by
the United States pay tax to the gov
eminent of FIVE per cent upon the annual
income, which is in addition to the tax
collected by States, counties and cities
upon the capital invested in that form.
Our democratic friends will hardly be
able to find any other description of
property which pays more taxation, ac-
cording to its real value, than do these
one thousand millions of national bonds.