Holmes County Republican. [volume] (Millersburg, Holmes Co., O. [Ohio]) 1870-1895, 1872-03-07

Treasurer of the United States, sl7. .602, ,3SS 81
| the entire expenses of the bureau, OF every de
scription, to July ], 1872, are 2,5l4,9l3 81"
There is thus a balance in this fun6
alone of more than fifteen millions
which is still available for the expense;
of the Currency Bureau. Of thi;
amount the expense proposed by the
present bill would absorb less thar
81 100000. 1t is not necessary, nor dc
think it is equitable, to tax the banks
further in order to supply them will
currency. The Secretary of the Treas
ury states in his last report that the in
come of the Government from the tax
upon the national banks, under the sec
ton of the banking law which have
read, is more than $6,000,0O0. The total
collections from banks and bankers un-
der another statute, as shown upon
page 205 of the report of the Commits
sioner of Internal Revenue, is nearly
s., 900, ,000. OF this amount, l infer
from such information as have been
able to obtain, that about 81, 100000 is
derived from dividends and other
sources of revenue connected with the
national banks. This sum added to the
$4,000, 900 reported by the Secretary of
the Treasury makes a total of 81 100000
of revenue to the Government from the
national banks alone, during the year
ending June 80, 1871. This is just two
and one half per cent. on an average
circulation of $3OO,OO0,OOO. Now, the
average State tax imposed upon nation
al banks is probably about as much
more. know that in my congressiOn-
al district in Ohio the State tax is fully
equal to the national. 1t is safe to as
sumo that the national banks in Ohio
are taxed five per cent. per annum upon
their circulation. II the same rate on
an average is maintained throughout
the country, it makes the total annual
contribution of our banking system,
for Government uses, SIS, ,0OO,OO Now,
l will not undertake to speak for city
banks. Some gentlemen tell me that
many of these have been very prosper
GUS; but l know something of the con-
ditiOn of the country banks, and am
convinced that in their case taxation
has nearly reached the full measure
which they can bear. Statements to
this effect come to me from upright and
intelligent gentlemen in my congress
sional district-gentlemen in whose
candor and sound judgment l have the
utmost confidence. am willing to tax
the banks as much as they can bear and
still do fairly profitable business. 1
am not willing to go further.
We should remember that the capital
which is invested in the national banks
is placed by our laws in such relations
to the Treasury Department that bank
officers cannot avoid-and L am glad to
say that they generally show no dispo-
sition to avoid-making clear exhibit
of every dollar which is liable to taxa
ton. The burden of taxation falls
upon the banks with its full
weight. Do We not owe them some
consideration ON that account?
l will mention one or two other con-
siderations which, it seems TO me, may
fairly have some weight with us in vo-
ting upon this bill. The first is that the
Government derives an annual revenue
of considerable amount from the loss
and destruction of national bank bills.
Every bank is required to deposit in the
Treasury United States bonds as securi-
ty for its circulation. When a bank
goes into liquidation these bonds are
and an amount of legal
tender notes equal to its whole circula-
ton is deposited in the Treasury for the
redemption of. that circulation. EX-
perience has shown that in these cases
a certain percentage of notes has been
lost or destroyed and can never be pre-
sented for redemption. To the full ex-
tent of the amount of these the Govern
ment finds itself the richer. Banks are
going into liquidation, and
the profit derived from this source in
ten years would probably not be less
than two million dollars.
Another consideration: we shall prob
ably reduce taxation upon other inter-
ests during the present session of Con-
gress forty or fifty million dollars. The
banks have not even asked to share in
this relief from heavy duties, but may
they not reasonably ask, in this time of
general reduction, that their burdens
shall at least not be increased?
Mr.. Speaker, have no doubt that our
system has defects, and these
as they are discovered L shall be glad to
unite with other gentlemen in amend
ing. will go as far as any man in pro-
tecting the people by legislation from
loss as depositors or holders Of bank
currency. wish to hold bank officers
to a strict accountability, and to punish
promptly any breach of trust. But l
am one of those who believe that our
banking system has been on
the whole a success. believe that the
interests of the people demand its con-
tinuance, and hence L wish to per feet
and improve, but not to destroy it.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY, Feb. 13, ~
SIR: inclose estimates made by the chief of
the Bureau of Engraving and Printing, OF the
expenses of a new issue OF national bank notes.
One of the estimates Is upon the basis OF
three printings on each note, and the other oil
two.
Mr. McCartee will appear before the COM
mittee this morning, agreeably to your request
and will explain the estimates more fully.
Very respectfully,
GEO. S. BOUTWELL,. secr'y.
HON. SAMUEL HOOPER, Chairman Committee
on Banking and Currency, House Of RePresen-
tdtiees.
Cost of reprinting the national bank notes G.,
100, 900 sheets of specirl localized fibre) pa
per, eighteen pounds per thousond sheets. at
seventy six cents per pound. ........ Ss3,44S
l2 000, 900 Impressions back-prlnting by
bank note companies Of New York. at
Sheets ..!,........-..-.. sse4, ,OOs
tbonsand dollars ...'.....i... 6O,OOO
4OT ,44s
IN T. '"'s '.'''''....i........... i.'o $4,000
snrface-printing Is, ,OOO, 600 impressions,
ut seventy-dve cents per thousand 9,ooO
.ar.ar u Inn