Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1870-06-16

Olutl3 MuOll ~ 10 ASSNAf w 4SNN~+'
them. Is the funding proposition
so aoeak that it is deemed necessa-
ry to compel the banks to sell two
hundred and ten million of unma-
turcd bonds in order to make il
successful? l will not admit it
you cannot admit it, the Secretary
of the Treasury, who am happy
to see present, know will not ad-
nit it, Then why not deal with
this part Of the subject in such a
manner that it will not only be
sanctioned by parties interested,
but by all parties, as one Of justice
and good faith
Gentlemen, there is public SEN
timent on this question, by all par
ties, and this compulsory measure,
requiring banks to take out Of the
United States Treasury their long
bonds paying six per cent, and
substitute four and a. half bonds, is
universally condemned; and allow
me to say that even this admins
tration cannot afford to take the
risk of passing an act that in its
results is so unjust to so large a
number Of the people of the coun-
try.
If any act is deemed necessary,
in your opinion, requiring banks
to fund their bonds, as they ma
ture, into a lower priced bond,
should not the tax on circulation
and deposits be taken off? Let
the same act cover both points, -
These taxes named are laid on the
banks in the 4lst section Of the Ma
tiOnal Currency act; and now let Il
reduction in taxation be II compen-
sation in part for the loss Of inter
est sustained in change of bonds.
The theory OF the tax on circula-
tion has been, that it was laid to
maintain the Currency Bureau; to
pay for engraving, printing, and
furnishing the notes to the nation
al banks, salaries, and all expenses
connected with the department; and
that the Government would receive
but little or no income from this
source; but how stands the &C,
count?
l have the following official state
ment, towit;
Tax received on circulation, to Ju-
Add the same ratio. for amount to
January |, 1870 OBSERVATION-DISCLOSURES, l,47Sl5'
st3.143 68-
Total expenses to January T., 1870, 9,17a,O5l
Net profits .,,..............S $40 $685. I'D
And the total receipts from banks,
for taxation on circulation, depos-
its and capital, is twenty eight mil
lion; and q further tax on diyi-
dends, profits over dividends, and
special license tax, amounts to 26,-
600, 900 more, making in all, taxes
paid by banks, Gfty.four million.
This statement shows that the
whole expense Of the Currency Blu
reau costs less than one eighth of
one per cont.
Now, gentlemen, ! Isubmit, is this
not crcessioe taration, and cannot
the whole of this circulation tax be
fairly taken off, especially if the
claim made by the department
should finally be decided in its IA
vor, that the currency of banks
winding up, never presented for re
demption, should accrue for the
benefit of the Government, and not
for the benefit OF the banks inter.
ested ? If this claim is sustained,
will not the loss of currency pay
all the expenses Of the bureau?
1t is said that "if the national
banks 60 into private banking,t they
become subject to every tax now
paid by national banks except the
tax on circulation. The tax on de
posits, stamps, profits, dividends
and all State taxes, will apply to
them as private banks" Let us
see il this is SO, as this matter OF
State taxation is very important;
so much so, that at this moment,
Western banks are asking to wind
up, the local taxation amounting
to nearly seven per cent, The
courts have decided, that capital
under State associations, partner
ships, and private banking, and all
covered by owning United States
bonds, cannot be tdged, while the
whole amount Of national banking
capital, although it may be cover
ed with United States bonds, as a
permanent Investment, under the
peculiar wording Of tho Bank act, is
taxable to the shareholders, a de-
cision satisfactory to us, as a mat
tor of policy, but not us one of
equity
Now il the banks surrender their
charters and organize as private
capital, holding their bonds, then
the States woUld lose the right to
tax three hundred and eighty,two
of fcapitol, being the amount
of United States bonds owned by |
them. And this matter Of State
taxationi in its results in connec.
ton with this bill, is worthy of
your deliberate consideration,
Why is it that the Comptroller's |
report shows list of fifty three
good, sound banks in uoiuatary
liquidation, to day? They are scat
terod in nineteen different States,
and are winding up, because their
capital can do a better business in
some other way, as the law and the
profits Of banking aoO stand. And
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