, 1877-03-17
The Tax Upon Banks.

The Tax Upon Banks.
l, will surprise many of our readers
10 learn that the national tax upon
banking capital and deposits amounts
TO ten millions per annum. The tax
was laid 10 meet the expenses o: war
times, and is therefore strictly war
levy. The occasion that called iiils
tax into existence, like the income tax
and other impositions OF the same
character, no longer existing, II Is
somewhat strange to find that 1t Is still
enforced. If this tax was confined to
the national banks, we of Washington
territory would have little occasion 10
complain; but it is applied 10 our
local banks, and being onerous IN lis
character compels them to exact rates
of interest that are deemed exorbitant.
We have stated above that this tax
brings into the national treasury Ten
million dollars per annum, but 10 re
alize this amount il has been shown
that The customers of the banks are
made to pay over S50,000,000 yearly
Within the past week We have care
fDlly examined a table showing The
rates of interest paid by The different
countries Of Europe, and find that the
highest figure-lhat of Russia-ls I
per cent. The average rate of interest
in Europe may be stated at 4 per cent,
This upon loans made by banks IN aid
of manufacturing and commercial en-
terprises, and it is this low rate of in
;erest that enables European manu
factures 10 undersell the American
producers in the markets of the world
Take the item of wages paid tC
skilled labor, and We find the Englisl
artisan about as well paid as iht
American mechanic, but tine Englist
manufacturer obtaining the use OF
money a. low rate is enabled to un
dersell the American producer engag
ed in the same line of trade A write,
upon finance VINO has carefully iuves
iigated The whole qrestion of Taxation
rs applied TO national and private
banks, finds that the average tax upor
capital thus invested is 6 per cent
That is 10 say the banker must realiz'
6 per cent. upon his capital to NEE
the demands of the tax gatherer. L
is for this reason that the banks are
compelled to charge at the rate of
per cent. month upon permanent
loans, and much higher rates upor
what is termed accommodation paper
Lift this oppressive rate of taxation
and money would be obtained at moe
reasonable figures, many enterprise
that are now retarded for want of cap
itaI would be successfully carried on
and new stimulus given 10 all th(
great interests of the country.
The operation of this system of tax
alton is readily understood. An inor
dinate tax upon banks and banker:
works TO increase the cost of bant
accommodations inevitably. Just a
every tax laid upon production in
creases the cost of the product 10 IT.,
consumer. 1t is well recognized
law of trade that every tax laid upoI
fiscal agencies obstructs the smootl
working of the appliances of business
and thus increases the cost 10 thos,
vino ueed an'l must have the accom-
modaiiOn. This effort 10 Secure The
repeal of national taxation on banl
capital and deposits is not, therefore
when viewed III its true light, strictly
an effort put forth in behalf Of bank,
and bankers, but An effort to remove
the distractions which clog The wheels
of Industry and enterprise. 1t should
be seconded by the great body Of
business men, by the great mass OF
operatives in the diversified field OF
production, and finally by the people
themselves.