The Grange advance. [volume] (Red Wing, Minn.) 1873-1877, 1877-01-17

his errors worthy of laudation.
Congress and Bank Taxation.
One of the most important reforms
which is to be urged in Congress rela-
tive to bank legislation, is the repeal of
those taxes which are so mischievous in
their operation both upon the banks
and upon the financial interests of the
country. The probability of the early
success of this project is the greater, as
the banks are united in the effort to OBJ
tain it, and as their claims are obvious
~ reasonable and moderate. Ever
since the war-tax system was organized
dozen years ago, the banks of this
country-private, State and National,
have been subject to double taxation.
They have been taxed as formerly by
the State governments. and they have
also been taxed by the National Gov
eminent. The National taxes, as we
have frequently shown, are specifically
war taxes; and as most Of the other
war imposts have been repealed, the
banks argue that their war taxes should
also be taken off. Among the reasons
which they present in favor Of this re-
lief, we find several which are worthy
of special remark.
There is for example, the fact that
the existing pressure of taxation sur
passes the fiscal power of the banks.
Every merchant and capitalist knows
that the business of banking is not as
profitable as formerly, and that
it is embarrassed with multitude
of heavy burdens. These burdens are
partly fiscal and partly general. The
former are clearly set forth in the able
report Of the Comptroller of the Curren-
cy, an extract from which we give else
where. 1t is estimated that the banks
are required to pay more than twenty
five millions Of dollars a year in taxa
ton, Of which the National banks pay
seventeen millions, and the private and
State banks eight millions.
Of these twenty-five millions, the Ma
tional government receives eleven mil.
lions, and the State governments fifteen
millions. Now, as it has been admitted
that nearly oue-half of this burden con-
sists Of war-taxes which must sooner or
later be RENTED, and which ought to
have been repealed long age, the equi-
ties Of the case suggest the repeating Of
| all the federal taxes on the banks ex.
cept the tax on the circulation.
| A second burden upon the banks is
due to the approach Of specie resump-
ton. TO this anticipation is in part
ascribed that accumulation in all our
banks Of idle deposits, which there is
not activity enough to employ in the
currents of legitimate business. There
is pressure in every part Of the tinan.
cial machinery which closes up o,
contracts many of those avenues of com
merce and trade through which the
trade banks can earn their profits
Moreover, much Of the strain attending
the restoration of specie payments, will
of necessity, concentrate it's forces up
on the banking system. For these and
other reasons it is clear that the com
plants Of the banks are perfectly just
and that banking institutions have t.
contend with peculiar embarrassments.
which render it eminently fit that theil
fiscal burdens should be made as light
as possible. 49,
If Congress should adopt the enligbt
ened course recommended, it will assim
ilate our legislation to that of the olde
countries of Europe, in none of which
is any special tax paid by the banks
except light one upon their circulat
ing notes. To illustrate the extent o
) the popular agitation in reference t
;. bank taxation, we migt point to tn
newspapers where the subject has beer
!, frequently discussed in connection will
tho suits which have been recently de
cided in the various courts. Two 0
: these cases are reported in subsequen
pages Of this issue. So says Banker
Magazine, for December, 1876.
The Commercial Advertiser, Dec. II