Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1875-11-17
COMMERCIAL.

TAXATION OF BANKS In a supplement to
his report. the Commissioner of Internal Rev
enue states that national banks pay taxes to the
United States Treasurer in January and July
OF per cent each half year on their deposits,
and the same rate each half yesr on the average
amour. of their capita stock not invested in
United States bonds. These taxes are collected
by the Treasurer, and constitute no part of the
internal revenue Since the organization of
national banks up to the close of the last fsc Il
year these taxes have yielded $64, $50 376 46.
Realized during tho last fiscal year, ST 27G, 1853. 40
Total on dep osits up to June 80, 1875 $50 01S.-
02S :; during the last tisc year, 3d. 27 576 81
Taxes on all ban ks and bankers, not national
are collected under the Internal Revenue laws,
viz: a per mt each month the capital
emplo'" d beyond the average amount invested
in u to- States bonds, II per cent each month
UPON the average amount of circulation issued
by them, and an additional tax of per ct. each
month upon the average amount OF such circu
laton issued beyond the amount of 80 per cent
Of the capital. Deposits in the associations ex
cluslvey Tor the lnvestm mt of savings for the
sole benefit OF depostors and having no capital,
are exempted from tax on their deposits invested
III United States securities and on sill deposits
not exceeding $500 in the name of any one
person. The act of June Is. 1874, extended this
exemption 70 such institutions as were then in
existence doing business only as saw ngs banks
sad recognized as such by the laws Of their re
sDective states or by Congress, although in fact
tllsy had capital stock bond for the add
,luna security OF the deposltors in fact, the law
authorized dividend OF 8 per cent on the stock
in providing that the excess of profits above this
dividend should be divided among the deposit
nrs, and besides provided that not less than Al
per cent interest be paid in all cases to depostors
to be made good, if necessary, from capital stock.
This is the present condition of the law. The
average capital held by banks and bankers not
national in May 1875, was 500 3i6 O9s; average
amount OF deposits 81, 24G Ola 81S; total ST. 546-
33O,9ll. Tax Bile capital and deposits during
tae six months previous only $50 1915. Upon
given amount Of capital and deposits the tax
IN California is ten times that in Massachusetts,
and in Michigan sixteen in Virginia five times
that in Vermont. The city of New York. pos
sessing taxable capital and deposits $50, 100000
less than Maine, New Hampshire, Vermont,
NJ assachu setts and Connecticut combined, pays
tax thre times a. great as these States, while
these same States having capital and deposits
three times as great as California, pay about
half the ts1 paid by California. The Com
missioner thinks that if deposits in these So
called savings institutions are thought a proper
subject for exemption from taxation where they
ale employed with such profitable results, it
we're better to return to the rule adopted By
Congress in 1866 where deposits made by any
one person in excess Of $5OU were subj scted to
taxation