Knoxville Whig and chronicle. [volume] (Knoxville, Tenn.) 1875-1882, 1875-09-22

taken in Europe the same as Legal
Tender notes, which is at par less the
premium on gold. Now as to taxes /:
Senator Sherman, in a recent speech
in Ohio, proved that the Govern.
ments, National and State, received
more in taxes from the National
Banks than would be saved to the
people by the Government issuing
Legal Tender notes instead of bank
notes. To the extent that banks are
organized and United States notes
are retired; we actually make money,
for the taxes collected from the banks
by the United States and the Stote
is actually greater, in dollars and
cents, than the interest we save by
issuing United States notes. Let us
see: Sj0,000,000 of United States
five per cent. bonds will, to-day. buy
S57.500,000 of United States notes.
If these S50,000,000 of bonds are
made the basis Of bank circulation,
the taxes. State and National, now
levied under existing law upon such
banks would average something over
) per cent, thus yielding the people
more money than the profits on the
circulation. But, it is said, ifthe cir
culation of National Banks is with
drawn, they would pay precisely the
same taxes, local and National, which
they now pay, with the exception Of
the tax on circulation. 1 say that if
the circulation was withdrawn they
would cease to be banks, and the
S430,000,000 of capital now invested
in United States bonds would cease
to be taxable, and not only the United
States, but every State and county in
the Union would lose all of the taxes
levied upon National banks. Our
own State would lose near one million
of dollars. We can't kill the goose
and yet have the golden eggs.
The Cincinnati Gazette in late
editorial says:
If the Ohio Democratic policy should be
adopted, the first effect, after producing a
sweeping and destructive panic, would be
to strike $50 millions of capital from the
tax duplicate by substituting $50 millions
Of greenbacks which are not taxable, for
National Bank notes, which are taxable
and setting afoat the bonds, which now
represent National Bank capital, and are
through the National Banks, subjected to
State and municipal taxes.
While therefore much is said against
bondholders whose wealth is not taxed, the
Democratic policy would increase vastly
this non-taxable wealth. 1t would strike at
least S6O0O,090 from the tax duplicate Of
| Hamilton county. But it is said by those
who have zeal without knowledge, that if
National Banks were abolished the capital
would be employed in private banking and
would be taxed. Would it? Let us see.
There are in Cincinnati private banks with
capital of 81, $4,000. These are taxed
on 81 ,O85, S36. There are National Banks
with a capital of 100000. These are
taxed on S4l95,6Si. The tax on private
banks is 43 per cent. Tess than their capital,
while the tax on National Banks is within
a fraction Of 5 per cent. more than their
capital. This is the case throughout Ohio,
and it is no doubt the case in all the States
These are facts that our readers
should remember when they hear
demagogues talking on a subject
about which they know nothing. Such
figures prove the wisdom of the fnan.
cial policy inaugurated by the Repub
lican party.