The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1875-12-02
Taxes on National Banks.

WASHINGTON, Nov. 15.-In a supple
mental report the Commissioner Of Internal
Revenue calls attention TO the laws regulat-
ing taxes on national banks and on banks
not national, for the purpose of presenting
| forcibly the exemptions on deposits in saw
ings banks. He says that national banks
pay to the Treasurer one-half of one pei
cent. each half year on their deposits, and
the same rate each half year on the amount
Of their capital stock not invested in United
States bonds. These taxes are collected by
the Treasurer, and constitute no part of the
internal revenue. The amount realized
during the last fiscal year from this source
was S7,210, 15S. 40, and the amount paid by
the national banks on deposits alone during
the same period aggregated 50, 427, $40. 81 l.
Other taxes on banks and bankers not ma
tional are collected under the internal reye-
nue. laws at the rate of one twenty-fOurth OF
one per cent. each month on the capital en-
plOyed beyond the average amount invested
in United States bonds; of One-twelfth of
one per cent. each month upon the average
amount of circulation issued by them, and
an additional tax of One-siXth 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
ings banks by any one person are not liable
TO tax unless they exceed - 900, and this eN-
emptiOn, instead of being confined to savings
banks having no capital stock and doing no
banking business, is now by recent leglsla-
tiOn extended to classes of institutions of
kindred names. having capital stock and
making dividends. The fruits of this legis-
latiOn are shown in a table, which shows that
the average amount of capital held by the
banks and bankers mot natiOnaD, in May,
1915, was S200. 316, ,09S; that the average
e ho;, lnr,pSit m tho IN
was 81, SAG, ,O14, S13; that the total capital and
deposits in the same month were 81 ,546, $50, :
911, while the amount of the taxable capital
and deposits of these banks and bankers dur
ing said six months was only $50, 494.1 or
a little more than three-fOurths Of a million
of dollars, while the amount of actual capital
and deposits of the same institutions was in
round numbers 1.546, ,0N, 900. 1t is also
shown how unequally this taxation is dis
tributed among the States. Thus upon a
given amount of capital and deposits the tax
on California, as cOmpal ed with Massachu-
sets, is as ten to one, an Michigan, as conf
pared with the same State, as sixteen to
one; on Virginia, as compared with YER
mont, five to one. The City of New York,
possessing taxable capital and deposits $50,
900, 900 less than Maine, New Hampshire,
Vermont, Massachusetts and Connecticut
combined, pays tax three times as great as
these States, while these same States, having
capital and deposits three times as great as
California, pay about Onehalf the tax there
on that is paid by California.
The Commissioner thinks - that if deposits
in these so-called savings institutions are
thought proper subject for exemption from
taxation, where they are employed with such
profitable results, it were better to return to
the rule adopted by Congress in 1866, where
deposits made by any person in excess of
500 were subject to taxation -