Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1875-07-29

In addition to this the national banks pay
State, county, and municipal taxes upon their
capital and surplus. The ratio of taxation un-
der this head in 1878 was: New York City,
$50; Buffalo, Albany, and Troy, 4 to per
cent; Boston, IA; Baltimore. 2.52; Cincinna-
ii, 2.27i Chicago, 2.S4; St. Louis, IA; Rich
mond, 2.07; st. Paul, 8; Charleston. $50;
Memphis, $40.
In local taxation the duplicate represents
about one-half the real value of the property
taxed. Banks, however, are taxed on their
full capital and surplus. They thus pay
double the taxes of private individuals, but we
call the State and national taxes equal to -four
and one-haif per cent. This is about what the
national banks of Cincinnati pay without ma.
king any allowance for excessive valuation.
The capital stock and surplus of the 1904
national banks on the I'd of October, 1874,
was as follows:
Capital stock k.................... $493, 765, III
surplus 1SS, 96S, lOI
Total taxable .................... $622. 733, 221
This at 4s per cent .,........... 81, 1876, ,66i 05
1t is thus seen that the national banks pay
an annual tax-national, State, and munich
pal-of $3l, ,I36, ,66i o5. Of course, portion
of this capital would be reached by local taxa
tion if the banks were abolished, but only a
very small portion. 1t is well known that
private bankers pay very little tax, while
money is hardly reached at all. Take Hamil-
ten county for example: With the exception
of the national banks, little money is returned
for taxation United States bonds and green
backs are not taxable, but national banks can
not escape.
Now let us see what the government would
save by substituting greenhacks for national
bank notes. There are 1885,, 600, 900 of bonds
on deposit to secure circulation Of $353, 900,
600. Suppose these to be 5 per cent. bonds,
as large part Of them are, and as all soon
will be, the interest would foot up $40, 400,
00o If the government should call these in,
it would have to redeem them in gold, which
is Is per cent premium. 1t would, therefore,
require BAG, 200, 600 in greenbacks to redeem
the bonds deposited by banks to secure their
circulation, Thus, in order to retire $3.50,
000, 600 of national bank notes would require
SAG, zoe, 900 in greenbacks, and, by the ope-
ration, the saving in interest would be $19,-
400, 900, while the loss in taxes would be
National ................. ...... 81, ,082, ,398 IS
State and municipal ....-......... "A, ,653, ,262 20
Total acknowledgements. $31, ,126, ,661 05
The national government would save about
12 millions by the operation, but the State
and municipal governments would lose over
$24, 600, 900, and thus, instead Of a gain, there
/ would be loss to the people Of 12 millions per
annum in the line OF taxes alone. But, it
may be said, why not tax greenbacks and Uni
ted States bonds2 Why, not; we may reply,
repudiate the debt? One course would be IS
honorable as the other. United States secu-
rites are not taxable. This IS written in the
contract, and the principle has been settled by
the Supreme Court.
g. The Banking System. Is it proposed
that the government of the United States
shall permanently engage in the business Of
issuing paper money that shall be legal ten.
der for all debts, except duties On importbi
If this is to be the policy, then strong argu.
ment might be used in favor of having uni.
form gree1back currency; but no one who de
sires a sound financial system that shall moi
fuctuate with every blast Of political wind car
favor any such plan. Greenbacks were issued
as war measure, and soon as practicable the
government should return to gold and silver
as the only legal currency, leaving it to phi
vate capitalists to issue paper money, under 9
national law, which currency shall be con