The New York herald., 1877-09-15
An Adjournment Reached
Yesterday Morning.
TAXATION OF BANKS.
Perils Attending the Issue OF
Municipal Bonds.
COMMENTS ON THE CONVENTION.

OF the resolutions oil the Executive Committee epprov
ing tho plan OF resumption proposed by Mr. George s.
Coe Many OF tho members OF tho Convention had
already departed for their homes Tho chairman in
troduccd Mr.. obauncey r. Williams Of Albany, who
read paper "rho Taxation Of Banks" in which
he history OF banks from the fifteenth century.
down to the present day. Tho Hon. II. II. Thurman,
Of Troy, then delivered the following address,
BANK TAXATION
will submit somc remarks upon the taxation OF
bank shares IN tho city oi Troy comparing II with
the taxation of other property, showing the in
equality Of assessment and the justice OF taxation
ana upon whom 10 .he payment o. taxes, the burden
AN aggregate capitni OF 81, 100000 They had on the
22i OF June, 1877, surplus Of $79l, 7os Tho market
value OF the stock was 000 The city ASSESSORS
by some mental process and mathematical calcula-
ton winch must be peculiar to tho brains of such
officials, put upon this stock value oi ST. 724 460
On seven Of tho banks the assessed valuation
is seven per cent Of tho market value
and on the other three an urbtrury valuation Is made
which rs not their par value market value, ond
can only be called an -cssi0na value. On the ten
banks The Stale aud county taxes In 1875 amounted 10
$11l926 So tho Uned stat es taxes TO SOL 686 SS and
the total taxation 10 $l63 6l3 6S This was at the rate
OF 05 per cent on the capital Tho real estate OF the
city has been assessed for many years ut 0nehrd OF
its nnrkpt value. have examined tho rolls and have
noticed that buildings newly erected valued
iess 'nan one,tn'ra o tneir COST ana tha. properly
price paid Large and expensive buildings assessed
at less than third Of their market value, put
vacant lots and cheap dwellings arc assessed at nearly
halt their market value, but general rule oil real
estate is assessed ut onehrd OF It's value. In 1875
the whole valuation of the personal estate IN the city
3d. 743 666, and OF this sum So 750 600 bank
slock. TINS was rating tho shares Of bank stock
the city equal TO 1875 per Of all the personal
estate In tho city subject TO TAXATION Deductng tho
value OF hank shares rcm the total value ana there Is
lett only $99366j 10 represent all The personal cash
estate the city subject TO taxation. Tho bank stock
OF tho ten Troy banks In 1876 was owned by
924 stockholders OF whom 3l4 were females. or the
moro than lIty thousand people residing in the CITY
less thun thousand less than one in hfty have
invested part OF their personal estate in bank stock
properly in the city II should assume that 900 other
persons were possessed of US much personal estate
the stockholders in the banks. am right not less
than ST. 900 in personal property, liable to taxation,
escapes assessment ana taxation. The rate OF
taxation bears with great hardship upon
this inequality OF assessment. The rate
OF the city tax 1876 50 ~ On 500 Of valuation
and tho county tax 81 a. total bong $5 49,
have shown that real estate assessed at onethird
o It's actual valuc and that the banks assessed at
more than two-thirds Of their market value. Thus
the bank shares arc assessed twice as much as real
tate and the tax would be twice as great
The speaker then quoted number OF statistics to
prove these assertions and then continucd:-
So far have spoken only OF State and local taxation
but IN addition TO that the United States lcvics OF
onc-ha OF one per cont on deposits one.hai Of one
bonds and one per cent on circulation. All real and
personal estate Is exempt IRON United states
taxation. The taxation on deposits Is especially
unjust A man comes into the bank In the morning
deposits Oo0 and before noon tho next day has
checked Is all out Fifty men call and do the same
Tho bank then taxed by the United states for dong
business from which II has received one cent Of
il is a debt due by tho bank Our State law permits
Offset our just debts against equal Of
personal property in our possesson but the United
States levles a tax on our debts.
After quoting statistics on this matter Mr.. Thurman
concluded by stating that he did not ask that tho
shares OF banks should be assessed for less than their
market value, but did ask that the rnc ol vau
should De applied in estimating tho value Of all
property
Tho next paper was read by Mr.. Rand. OF Pbiladci-
II
Farmers Bank, Philadelphia, entitled 'Bank Taxation
in Pennsylvania" 1t gave history OF tho various
laws and enac,ments passed for the government of
banks and banking interests the State OF Pennsyl
vania.
RESOLUTIONS ADOPTED
1t was resolved as the sense Of this Convention that
tho business country demands that he banking
interests of the United States be relieved from ali
taxation by the general government except an annual
tax their circulation to cover the expenses OF the
Currency Bureau and that taxation OF bank shares by
the States be evod IN the sarne manner only and 10
the same extent, aud subject 10 the same privileges
nnd immunitics as other personal property"
II resolved that the opinion OF this Con-
vention silver money rs subsidiary currency Is de-
srcd Dy the people, and mat its Tree but rot enforced
will greatly aid in restoring the value Of our paper
money"
WHAT THE CONVENTION REPRESENTED.
Mr.. James Buell. aid:-lt should DO understood
that tbis gathering OF bankers IS not general
bage u all bankers but Of representatives Of banks
For instance. from state cano three gentlemen
with authority TO represent all tho banks
In that State they agreeing 10 abide by the action OF
the Convention In this way " Is estimated that over
SIX thou and banks rcDrcsentcd so that tho dele
gates represent the banks as Senator docs tho
people.
ditionaI members OF the Executive CouCcl:-Wam
g. Dcshier President OF the Natio al Exchange Bank,
National Bank, syracuse, N. X; Hon. Samuel Mer-
rill President Of the Ctizcns' National Bank, Dcs-
molncs Iowa; N. Kopperl. President OF tho National
Bank Galveston, rexas Charles Parsons President OF
the state savings Bank, ST. Louis, No. H. II. Camp,
Cashier Of the First National Bank, Milwaukee, Wis
Mr.. Christensen, Cashier OF the Bank OF Nevada, San
Francisco, Cal. o. J.. Baldwin, Cashier Of tho Me-
chances National Bank, Newark, n j.; ]. c. Murray,
Louisville, KY. John O. New, President of The First
National Bank, Indianapolis, Ind; J. Il. McMiun.
CASHIER OF tho Mobile Savings Bank, Mobile. Ala. II.
d. Moss, FIRST National BANK, sandusgy, OHIO.
MUNICIPAL BONDS
Mr.. James Buell., Secretary oi the American Bank
ers Assocation made an address on ihe question of
municipal bonds. He rad :-lhffc are two points IN
regard TO municipal bonds ON vsilch desire TO oncr
lew onsorvaiioGs u Hm compeiied 10 speak at all
The first is as 10 the necessity Tor immediate
action. something must be aone without delay.
The evidcnce oil gentlemen recently returned
IRON Europe coincIdcs with the testimony
which Tor some years has been SO nbund mt
and conspicuous in inns country, and proves tnat
our pubic credit has already received severe injuries
from the excessive Issncs oi municipal bonds and is
threatened win sl greater evils IN the not distant
futurc As has been admirably shown 10 the reporls
OF Inc commission appointed III the State OF New York
70 lhvcsseato ihIs subject an immense aggregate OF
municipal bouds Will mature IN thrco or four years,
aud, except some vigorous policy is adopted 10 sup
soIuicly Impossible TO them acceptable terms
or 10 prevent public outcry for reputation.
In thc United States there $50 cities whose 1nan
cal condition nave had IN WOW In making thcsr re.
IN m,rks. OF these citcs 20 nave population OF 100000
and upward Their net total debt, nearly IL
be asccriainod alter deductng the SINKING funds 10
Sl02, 000 ext we have IL cities whose popula.
ton Is IRON 40 900 10 100 v00 and whose aggregate
debtcdncss Is s4I0O0,0V0 We have, then, 81 cities
with population OF 1000 10 40 OUU, whose aggrc
gate debt amounts TO nearly 500 00OvO0 The total of
these "a cities is more than haf OF that which est-
m In ntaI fho HMM
gate Is $593, 3I3.5
It's diilcuit us cvcry one Will admit who hns mado
tnr attempt. 10 obtain the st,tistcs OF the smaller
cities, even IN the state OF New York. For many
o. tho Western and southcrn Stucs the attempt, |
thou,h 'nvoivng gtcat labor, IS seldom rewarded by
much ac.nrac information For nl.y six cities below
2lOJ0 puation l find that The TO al dobt IN is
wac s5,,UUv,O0,. Hence the 10 cities whose
statistics have anylizcd had, la 1916 net
yt OF SGl4 31S $50. TIL sum Is three-hiihs of
tnc aggregate estimated TO be that OF all the munic
paltics o this country. In this enormous debt eco
many reasons for grave alarm, especially us i's m
,ase has been rap,d aurIng several years p"s':
Toe amount OF incs permai ont debt Of we severe.