The New York herald., 1875-12-03
GENERAL WASHINGTON DISPATCHES.

WAsHISaros Dec. ., 1875
THE COMPTROLLER or THE CURRENCY on THE
TAXATION or NATIONAL DANKs-THE POWER
or THE STATE TO IMPOSE TAxRs-THE NEW
YORK TAX COMMISSIONERS AND THE BANKS.
The following is extract from that portion OF the
report Of the Comptroller Of the Currency referring
the taxation OF national BANKS
The Comptroller In September last issued circular
addressed TO the national banks requesting returns or
State taxation for the 1874 and 1874 The
ment for 1875 had not generally been made at that
time and the returns for that year therefore
meagre The number Of banks n operation during the
year 1874 was 970 iortyonc OF which paid State
taxes because they were organized after the
ment for the year had beon made, and thirty
six banks failed TO reply The aggregate re-
classified by States. table is prepared which
gives the amount OF United States and State and
the rate OF taxation In every State of the Union for that
year Similar tables given for 1867 and 1862 from
which appears that the national banks of the state OF
New York pay the highest bank taxes Of any OF the
Eastern or Middle States.
An estimate OF the total taxation Of the national
banks for the ten years ending in 1875 has been made
and table Of the results is given in the report The
Comptroller has heretofore in his reports called the
attention OF Congress to the fact that while
tonal banks are subject to tax upon their entire
capital, which can be easily ascertaned from their
books and reports and not nfrequently upon the
ket value OF their shares, other corporations the
amount Of whose shares be as readily obtained
by appropriate legislation assessed at
not one-haf Of their value while private
firms and individuals almost wholly exempt from
bearing their share Of the burden Letters recently
ceived by the Comptroller from the presidents of two
principal banks in the East and the other the
West refer TO this greatest economical subjects in
such plain terms that he forbear calling the
tentlon of Congress- To their supresLionss-
Many Of the shareholders of the national banks de-
pend for their income chiefly upon the earnings OF
these institutions and II does not seem just that these
thousands OF shareholders should by any construction
of law be compelled 10 pay undue proportion of
1t is submitted that the law interpreted by tho
different State courts and by and collectors
neither equitable nor honest national bank in one
Of the Eastern cities recently refused pay taxes
the ground that the of the neghborng State
bank were assessed at greater value than its own,
though worth several times much.
The Court is understood TO have held nat the bank
had no right TO complain, since its shares not
taxed above their value, and that not for II to
consider whether the shares Of other banks OF
greater value taxed the same rate The Tax
Commissioners OF New York city propose 90 tax the
banks OF that city national and State, not only upon
amount of their surplus, without any allowance or
abatement. In consequence of this purpose O
mtee composed Of officers Of the FIVE principal banks
in that city was appointed to confer with the Commits
sioners The law Of New York provides in substance
that so much of the property of individual stock
holders as Is held by them In bank stock is liable
to be taxed for the value of the shares and
penalty Is prescribed If any bank allows the transfer
OF shares after the tax has become due and before 1t is
paid The banks in New York city in order TO avoid
annoyance and vexatous suits have for several years
paid the tax about three cent annually to the city
direct instead of leaving it for the stockholders to
pay and the Chairman OF the committee, In his
munlcation, writes as follows:-
The Tax Commissioners refuse allow time either for
Legislature redress They tho ground they
he eTe a a @ S
Of January, 1876 We reply substantially : iollows-
their existenee the laws q Congress and the
" % ~e 'asdRss
II desires to build instead OF weak banks
PROFIT sdansags Of the other
he % g them
banks banks may be taxed out of existence, and State
evils sha. %sy arise For 4 is certain that If the easns
ect additional Of three per that fund viii be
divided among the shareholders for the simple hat
sscondTho Of the state laws by the
law says the levied Of shares
no the market yane Or intrinsic yane but value and
with law On the. supposition that without any
been accordingly Again rule taxation as adopted
sy shs Tax has been practical yiols.on q
not be taxed higher than other per-
e that the s While osl
s a and ws o sSsd q sn G On
that sum, while individual worth that would be
T-Ba we claim thai aSs state has no right Whatever
to Tax nsoa SsP M ssesRs n.a e ss .Stens % sqs6 h :
Is quite emphatic by the United States Supreme
Mechanics National Bank Of suo against Pessr psa
ing In relation 70 In that under the third
head, the Court
THE banks were brought existence by the
government for its good The national government
exclusive control them No State has any
will In to as sS ssns % = regard 70 all
by taxation or otherwise 50 resrd impede burden or in
This is clear and think, conclusive The President
of the Western Bank in his letter the greatest wrong
taxation the great uniformity in assessing values
varying from less than twenty-five cent OF actual
vaiue 20 full value and surpiuA Section 5,2Ie. Re-
provide against excessive national bank shares
but Rrasses HHs g psS'ees q US Sscapse 5 % othsr
while In many instances (our own as one the full value
is assessed We poweress TO raise the
cannot be down. II is subject the caprice
Of local assessors who gain popularity by the inequality
in parIcuar II this section could be amended SO az 70 read
tenth ue Of section 52i9 assessed upon other personal
such statei the evil would be remcdied In this
State our principal other moneyed capital Is In rail-
centare on their earnings not one half per cent on she cap
actual nominal The section referred provides that
the exeent for State county municipal
purposes other real property and not probable thai IL
banks tax greater imposed upon shares Of
other corporations.
sELEcTIoNs FOR TIE OPENING CEREMONIES OF
THE CENTENNIAL.
The Centennial Committee the Opening Cere-
W. Longfellow as poet and a grandson II Richard
Henry Lee, Of Virginia, reader or the American
Declaration OF Independence
EVENING WEATHER REPORT.