New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-01-12
TAXATION OF BANKING CAPITAL.

PETITIONS FOR THE REPEAL OR MODIFICATION oF
NATIONAL AND STATE LAWS APPROVED BY THE
CHAMBER OF COMMERCE.
At special meeting of the Chamber OF
Commerce yesterday TO consider the system OF taAaon
imposed the banking institutions OF this country
there was a large attendance. Among those present
were Jacob Wendell, John Patton, James NJ Broom,
Henry +. spauding, Gustav Schwab, Nathan Chander'
f. W. Corles James =. Wallace, James s. T. stranahan,
b L. salomon James Haslehurst, Ambrose Snow, b. q.
Arnold, william H. GuiOn, Benjamin b. Sherman FREEZER
lex ID. Happen, George 8. COe, Henry X Bull, ana
James F. Ruggles
Printed copies OF petitions distributed among the
members Of which TO Congress. II recited that
the continuance of this and discriminating war
taxation on banking capital is rapidly withdrawing 1t
business leaving the commerce and industries
OF the country i'll prepared TO meet long hoped for re-
turning tide Of prosperity and that persistence III tns
unequal and special tax can lead to but one result ana
that proong the present period OF depression ana
inactivity; and that the taxes the deposits and cap
al of all banks should he Immediately repealed and the
subject Of bank taxation RENTED to the several States
and Territories.
Another petition was addressed to the Legislature OF
this State follows:
The petition of the undersigned engaged In CONNER
cia mercantile, and manufacturing business RESPECT,
fully showeh That upon shareholders OF banks III
poses pon that single class property heavy and I'M
equal burden not applied to any other ana wnicn ~
capital which have hitherto contributed to the public
revenues and have also promoted the growth and pros
ess that the diminHtion of banking capital in this
city alone, and of the taxable value OF BANK
mating assessment, has, for the past year,
reached $50 and the reduction is stu FUR
moment when the commercial preemnenee OF TINS me
State and will require all their combined cap,
ta to aid IN restoring the country 10 SOUND hnanc
Immediate revenue is promoted by the present method
OF taxing bank shares but the contrary that the ety.
from the consequent dmnntion Of this Important in
terest Wherefore, they pray your honorable bodies 70
amend the laws that shareholders of banks in TINS
state shall assessed above the actual value OF Their
property invested after dednctng all property with
which private citizen or noneyed corPo-
ration, not a bank banking association, Is exempt
from assessment and taxation by authority OF the state
The President, Samuel d. Babcock called the meeting
to order and Gustav Schwab made substantially the fol-
lowing address:
1t is only natural that effort OF this kind should
originate in the State and City OF New YORK. wch pear
both the honor and responsibility OF being tile imam
c center Of the country Our State represents over IS
per cent OF the whole banking capital OF tGe United
States and holds SO per cent OF the bank deposits
in the country. Any tax on such capital ana deposits
for the benefit of the United States must necessarily be
felt the financial metropolis OF this state more tlan
anywhere else On the other side the taxation III the
State of New-York has been brought TO bear on our
banks with far greater strlngency ana 10 mucn
greater extent, than has been the case III otner
States thus placing these banks IN very uniavoraDe
position compared to those OF our negnbolng sates
The national taxation had To he patiently borne rs long
effects OF the but this object being now fully accom-
plished, think we may Justly appeal To Congress Tor
relief from the whole OF that With regard 10
State taxation may with equal proprety point TO the
injustice with which the laws Of the ATE operate
on corporate bank capital in comparison with the carlta
foreign bankers and of business men generally ana
we NAV Justly ask such partial relief as Will place the
banks of city ana state once more Oh par WITH
those of other States.
AS long as business ourishing banks could az
ford stand the strain OF this unjust discrimination;
but with the general depression OF business there mas
gradually this interest "a change which FOR
in the future not only 10 these institutions
and their stockholders, but to the whole business and IN
dustry country. For other reason than eXccs
sve taxation the accumulated surplus earnings OF
our banks within short time past been reduced by mp
ward 100000 Not only is this reduction IN rapid
but for the reasons movement has also
heen initiated the reduction of bank capital The
sudden Increase of the banking capital OF tine country
before 1857 eliminated in the crisis of that year; we
EXPECT a similar financial embarrassment, if We allow
violent reduction Of our banking facilities to run 10
excess. -.
Mr. schwab presented resolutions approving the petit
tons appointing committee of ten to sigma
lures and present the matter at Washington and Albany
and requesting other chambers OF commerce and boards
OF trade TO take similar action. The resolutions were
seconded by George T. Hope who spoke briefly In their
favor and were carried unanimously. The President
appointed the following gentlemen as the committee
George T. Hope, Gustav Schwab, b. G. Arnold. H. b.
Claim, Martin Bates. James Iiaslehurs Arson Phelps
Stokes James NJ. Constable, william Is. Kendall and A.
g. Barnes The petitions viii be circulated for signatures
by canvassers.