The Andrew County Republican. [volume] (Savannah, Mo.) 1871-1876, 1875-11-26
Taxes on National Banks.

WASHINGTON, Nov. 1l.-In 4 supple
mental report the Commissioners OF internal
Revenue calls attention to the laws rc@lllat-
ing taxes on national banks and on banks
not national, for the purpose of presenting
forcihiy the exemptions on deposits in say
ing> banks. He says that national banks
pay 10 the Treasurer 0nc-half of one per
cent. each half year on their deposits. and
the same rate each half year on the amount
of thcir capital stock not invested in | nltcd
States bonds. These taxes are collected by
the Treasurer, and constitute no part of the
internal rpNtnue. The amount realized
during the last fiscal wear from this source
WAS $40. 1jS. 70. and the amount paid by
the national banks on deposits alone during
the same period aggregated S5,42,,1IG.3l
Other taxes on banks and bankers not ma
tional are collected under the internal revc-
nue. iawS At the rate of one tWcnty-fourth of
one per cent. each month on the capital en-
plOycd beyond the average amount invested
in United States bonds; of Onc-twclfth Of
one per cent. each month upon the average
amount of circulation issued by them, and
an additional tax of Onc->iXth of one per
cent. each month upon the average amount
of such circulation issued beyond the
amount of ninety per cent. of the capital of
the bank, association. company or person.
BY the existing law deposits made in saw
lng> banks by any one person are not liable
To tax unless they exceed - 1000, and this "
cmptiOn. instead of being confined to savings
banks having no capital stock and dom" no
banking business, is now by recent legi>la-
ton extended to GLASSES of institutions Of
kindred names. having capital stock and
making dividends. The fruits of this lrgi>-
lation are shown ina table, which shows that
the average amount OF capital held 10y the
banks and bankers (not nationally. in May,
49, Ntn- SpIA pIE llN. -h,. th, -.rn,
amount of their deposit in the same month
was Hl.3i6. Oh. Sl3: that the total capital and
deposits in the same month We're Sl,jfG, 80
81. while the amount Of the taxable capital
and deposits of these banks and bankers dur
Ing said six months WAS only $50. i!Ai. Is. or
Il little more than thrcc-fOUrthS of 4 million
OF dollars. while the amount of actual capital
and deposits of the same institutions WAS in
round numbers II, ut. 0lO. UO. II l. also
shown how %uncqualIy this taxation j. dis
tributrd among the States. Thus upon 4
given amount of capital md deposits the tax
on California, a. compared with Na>Saclu-
sets. is a. ten to one. an | Michigan, "a COM
pared with the same state. IL sixteen to
one: on Virginia. a. compared with Yer
mont. five to one. The City of New York,
possessing taxable capital and deposits $50
O0O, 600 less than Maine. New Hampshire.
Vermont. Massachusetts, and Connecticut
combined, pays a tax three times aS Great a.
these States, while these same States. having
capital and deposits three times rs great a>
California. pay about 0mc-half the tax there
on that i paid 10y California.
The Commi>sionerthinkS that if deposits
in these So-callcd savings Institutions are
thought 4 proper subject for exemption from
taxation, where they are employed with such
profitable results. ii were better to return 10
the rule adopted by Congress in 1866, where
deposits made by any person in excess of
500 were subject TO taxation.