The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1877-01-06


tax on corporation stock, $4,000 o.
Revenue from other
sources. q, 100, 900 90
---3, $40 ,25l 81
Loss to fund for 1877 .............. 7s) sol So
Estimated amount of reduction in ex-
penses for 1877 over 1T6........... 500 ,009 90
Amount to be provided for. r........... $50, ,5o1 80
All the expenditures of the governm ent are
payable out of the general fund except public
debt and interest thereon, which are payable
out of the sinkipg fund. Bv act Of February
12 1876, twothirdS of all the tax capital stock
of all corporations of this commonwealth were
diverted TO the sinking fund, but the act turther
provided that for the year 1876 twO-thirds Of the
corporate tax shall be paid TO the general fund
AMI the remaining one-third into the sinking
fund. In 1877 the general fund will, therefore,
receive only One-third of this tax, instead of
twothrds. rs in 1876 This loss Of one
third Of the corporation tax to this fund,
wth the natural reduction in this aud other
sources Of revenue by reason of depression of
business, will make the r,ceipts of this fun
about $50 1000 less than last year. Expenses
will have to bs cut down materially, or addi-
tiOnal revenue provided. The executive will
feel it his duty, should the appropriations be in
excess OF the probable revenue; to disApprove
such items as to him may seem the least urgent.
II may not be well to withdraw the aid hereto
fore extended to charitable institutions Max
ing no reductions in these appropriations, am
confident that S50O,O0O of expenses of last year, 1,
attending the centennial, improvements, legisla-
lature, judiciary, printing and suppressing riots
will not be necessary this year leaving reduction
Of about $500 900 to be provided for. Foreign In
surance companies are resisting the payment of
state tax, If the question is decided in favor of
the state, s26e 900 additional will be received iu
claim against the United States amounting to
about $500 OO0. And there may be smaller
claims in suit Although It il believed that these
will not be safe to anticipate them by Appropria-
ton. The deficiency can probably be supplied
without additional taxation, by strengthening
the hands of the financial oftieets Of the state
present system Of assessment and collection of
mercantile and tavern licenses is expensive aud
inefficient. sometimes there are no assessments,
and when assessments ave made there are no col
lections ,andwhen collections are made the money
is slow in reaching the treasury. The whole
subject of mercantile and tavern licenses, in the
manner of assessment collection and publtca-
ton, ought to be revised. BY avoiding unneces-
sary expense and making the financial officers
of the state responsible for the execution Of the
law, through their own appointed agents, the
returns from this source may be largely in
creased With this increased revenue feel sat
ished the general expenses OF the government
can be met without resorting to additional taxa
tion.
The corporation stock tax is measured by the
dividend declared, and If no dividend IL declared
the 0ek is appraised and 'ssessst az hEed
the year, the tax may be very much out OF pro-
portion to the value of the stock. To avoid this
the 'tock of all CORPORATIONS paying less than
six per mum dividend should be appraised.
1t is also qu astion to be gravely considered.
whether tht tax on railroad corporations, now
paying only the tax on capital stocE, should not
be reduced from ''nine-tenths of one mill upon
it+ capital stock for each one per centum of divl-
dend made or declared by such company" to
five-tenths of one mill and gro receipt tax i'm
posed sufficient to produce revenue equal to
such reduction Some of the Weather railroad
enterprisAa the state are now payin< little or
no DIVIDENDS and theref0re very little tax for the
large amount Uf property represented. The
non-productive as well as the nroduetve prop
erty of individuals is equally assessed in proper
tion TO its value. While 1t is not preGolded to
apply the same rule strictly to railroad prop 'rty
on account of its great advantages and dement's
to the public, yeG believe the mode of assess
ments should be changed as not to give uu-
profitable railroad property almost total eNemp-
tion from taxation.
BANKS AND SAVING FUNDS.
At the last session of the legislature general
act was passed for the incorporation and regula-
ton of banks of deposit and discount. The pro-
visions of the act are in harmony with the prin-
ciples set forth in the annual messages of 1874
and 1875. The effect of this law, when the loose
charters so freely granted in former years shall
have expired, Will be to keep banks in their
proper sphere as clearing houses for business
| transactions and for exchanges, and the instru-
ments for collecting the temporarily unem-
| ployed capital of bu iness men and redistribu-
| ting it by loans and discounts according to the
wants of trade. 1t will create mutually of in
| terest between the banks and their patrons,
| which VIII prevent the removal large amounts
| of capt. Al to money centres for speculative puT-
poses and force loans to lOcat enterprises for le
| gitimate business purposes at reasonable rates
| OF interest Business men, Tor obvious reasons,
| will be the depostors of these institutions. The
! savings of the people, which have been at
tracted by the lure of interest on deposits, will
| be diverted to other institutions. managed upon
different principles, and having in view differ
| ent object.
To provide for that contingency, and as a
| complement to the act Of May 10 1873. / recon-
mend the passage of an act for the incOrpOra-
ton and regulation of savings flnds, prohibiting
| them from becoming banks of discount, and
| cOntining them to their proper Object-the safe
keeping Of the savings OF the people, The de-
posits of such institutions should be made as
inviOlable as trust funds In the hands oftrustees
| The meTcenarv spirit and desire of gain should
| be taken out of their management, so that only
men of the purest motives and highest integrity
/ will become managers and directors of them.
| The salient features of law that would com
mend itself to my judgment, are these: lhere
should be no stockholders expecting return fol-
capital invested the CorpOrGtOrs should be men
| of charact aud standing, having no peeuniary
| interest in the business. The amount to be de-
posted by one individual in any one year should
| be limited. The Investment OF deposits should
be restricted by law to frst-tlass securities and
measures taken to have this provision strictly
complied with Quarterly statements should be
required to be published. The interest paid tC
depositors should be limited in general to about
four per centum per aunum the balance of in.
terest arising from investments would be used
10 pay Shlhllrb anu olltI running tAltIsths anu
to create a surplus fund TO provide for extraOr.
dinary depreciations and expenses. Th. surplus
fund might be limited TO n certain percentage OF
assets, allowing the board of directors OF
trustees TO increase the rate of annual interest
whenever the surplus sufficiently exceeded such
proportion. Owing to tn permanent character
of the Investments, certain small percentage
OF deposits might be sst apart for curr snt bust
ness, and all depositOrs should he required L
give a reasonable notice Of their intention Il
withdraw money from the funds In New YOrl
sixty OF ninety days are so given, aud in the in
stitutions chartered in Pennsylvania only four
teen days. In ordinary times the latter limit il
perhaps sufficient, but in panies, when eXtraOr
dinary depreciations in the market yalu- of al
securities take place, the interests of the depDsi
tors would be best secured by the longer limit.
l am aware that law of this character ha
not the stability or certainty of one fodude,
upon mercenary interests. he philanthropy o
men is fuctuating quality; their self interest /
a constant and steady force, In so far AS it /
purely beneficial, such a law may be regarde,
as experimental. somewhat similar law eX
lists in New York aud most of the New England
states, aud one or two institutions have beel
chartered IN Pennsy ylylniA upon these prlnei