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

Ino baukers' convention reaSscmOeo yesteruny
morning at eleven O'Clock It seemed to be felt that the
real practical work OF the Convention had beon 6n-
shed at Thursday evenings session by the ratification
OF the resolutions OF the Executive Committee spprov-
ing tho plan OF resumption proposed by Mr. George s.
Coo Many OF the members OF tho Convention had
already departed for their homes Tho chairman in
troduccd Mr. Chuuncey r. Williams, Of Albany, who
read q paper "Tho Taxation of Banks )" in which
be a history OF banks from the fifteenth century
down to the present day Tho Hon. r. II. Thurman,
of Troy, then delivered the following address,
BANK TAXATION
will submit somc remarks upon the taxation Of
bank shares in tho city OF Troy, comparing IL with
tho taxation ot other property, showing the In
equality Uf assessment and the injustice OF taxation
aud upon whom IN the payment oil taxes, the burden
ultimately falls We have IN the city ten banks, with
an aggregate capita OF 81. 100000 They had on the
22i OF June, 1871 surplus OF $79l, 708 Tho market
value of the stock $296l 900 The city assessors
by some mental process and mathema ical cacula-
ton winch NUT be peculiar to tho brains of such
officials, put upon this stock value OF 81 724, 400
On seven OF tho banks the assessed valuation
is seven per cent OF tho market value
and the otner three an arbitrary valuation made
which Is not her pnr value nor market value ond
can only he called -cssiOnal value. On the ten
banks the State aud county IN 1875 amounted
Slll,926 So the Uned states taxes to SOL 6S6 So and
the total taxation 10 $l63 6l3 6S. This the
OF 05 per cent on the capital Tho real the
city has been assessed for many at Onethird OF
its nnrket value. have examined tho rolls and have
noiiced that buildings newly erected valued at
less than one-ihird OF their COST and that properly
price paid Large and expensive buildings assessed
less than third OF their market value, put
vacant lots and cheap dwellings are assessed at nearly
halt their market value, but general rule all real
estate Is assessed ut onethrd OF Its value In 1876
the whole valuation OF the personal estate in the city
was So 1866 and OF this sum 81 100 600 was bank
stock. TINS was rating tho shares of bank stock IN
the city equal 10 1875 per cent OF all the personal
estate IN tho city subject taxation. Dcductng tho
OF bank shares the total value and there
lett only $685. 66j 10 represent all The personal cash
estate IN the city subject TO axa,lon The bank stock
a
924 stockholders OF whom 3l4 were females. or the
more than hIty thousand people residing In the CITY
less than thousand, less than one in nfty have
invested part OF their personal estate in bank stock
ltwouId DC very moderate estimate OF The personal
persons possessed Of us much personal estate
the stockholders in the banks II am right less
escapes assessment and taxation, the rate OF
taxation bears with great hardship upon
the shareholders nt Of banks in consequence OF
the city IN 1876 s3 ~ 500 of valuation
and tho OF county 81 H. the total bong SIS IS.
have shown that real estate IS assessed at oncthrd
oil It's actual vano and that tho banks assessed at
more than two-thrds Of their market value Thus
the bank shares assessed twice much as real
tate and the tax would be twice great
Tho speaker then quoted number Of statistics to
prove these assertions and then continued
So spoken only OF State and local taxation,
but addition to that the United States evcs tax Of
onchalf OF one per cent on deposits one-hali OF one
per cent on capital not invested In United States
bonds and one per cent on circulation. All real and
personal estate rs exempt IRON United States
unjust A man comes into the bank in the morning
deposits $1,000, and before noon tho next day has
checked u all out Fifty men call and do the same.
Tho bank then taxed by the United states Tor dong
business from which II has not received OF
profit. The deposit not the property of the bank.
il is debt due by the bank. Our State law permits
Offset our just debts against an equal amount Of
personal property in our possession; but the United
States levles debts
After quoting statistics on this maticr 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 rac OF vau-
should be applied in estimating tho value of all
properly.
Tho next paper read by Mr.. Rand, OF Pbiladcl-
phia, and was prepared by Mr.. E. NJ. Lewis, OF tho
Farmers Bank Philadelphia, entitled "Bank Taxation
in Pcnnsyi yivana." IL gave history OF tho various
laws aud enactments passed for the government of
banks and banking interests the State OF Pcnnsy
vania.
RESOLUTIONS ADOPTED
1t resolved las the sense Of thus Convention that
the business oil tho country demands that The banking
interests of the Uniicd states be relieved from all
taxation by the general government except an annual
their circulation 20 cover the expenses Of the
Currency Bureau and that taxation OF bank shares by
the States be levod N the -amc manner only and 10
the same extent, aud subject 10 the same privileges
and tnmuntics M otncr personal property"
II also resolved that "n the opinion OF this Con-
vcniion silver money as subsidiary currency IS de.
sired by tho people, and that IT'S Tree but rot enforced
will greatly aid in restoring the value oi our paper
money"
Mr.. James Bacli said:-lt should DO understood
that tbis gathering OF bankers not general asscm
bagc all bankers but of representatives OF bankk
For instance. from state cano three gentlemen
with authority TO act Tor and represent all the banks
in that State they agreeing 10 abide by the action OF
the Convention. In this way II Is estimated that over
thou and banks are rcprcsentcd, so that the dele
gates represent the banks as q Senator docs tho
people.
The following named gentlemen appointed ad.
di,ionaI members OF tho Executive Courcil:-Wiilam
g. Deshcr President OF the NatioI al Exchange Bank,
Columbus, Ohio H. b. Judson, President of the First
National Bank. Syracuse, n. y Hon samuel Mer.
MONIES, Iowa; NJ Kopper. President Of tho National
Bank Gavcslon Texas; Charles Parsons President OF
the state savings Bank, 81, Lonis Mo, II. II. Camp.
Cashier of the FIRST National Bank Milwaukee, Wis;
Mr. Christensen, Cashier OF the Bank OF Nevada San
Francisco, Cal 90. !. Baldwin, Cashier Of the Me-
Louisville. KY; John o. New President Of The First
National Bsnk; indianapolis, Ind; j. B. Mcmillan.
Cashier OF the Mobile Savings Bank, Mobile Ala. II.
ID. Moss, FIRST National Bank, sundusky, OHIO.
MUNICIPAL BONDS
Mr. james Buell., Secretary Of the American Bank
crs' Association, made address on the question OF
municipal bonds He salG:--Iherc are two points IN
regard 10 mun'cpa bonds on which desire TO oner
few onsorvaoGs II i am compelled to speak AZ al.
The irst is the necessity tor immediate
action. something must be dono without delay.
rom IRON Europe coae'"es "es' with inc testimony
which Tor some ycnrs has been SO abund mt
and conspicuous in Tins country, and proves tnat
pubic credit has already received severe injuries
from the excessive issues oi municipal bonds. ard
threatened win stll greater evils IN the moi distant
future. As has been admirably shown In the reports
OF the commission appointed the State OF New York
to investigate iis subject, immense aggregate OF
municipal bouds Will mat ure IN three four years,
aud except some vigoi policy is adopted 10 sup
pore the crcut O tins class Di securtirs II will be aD
soluicly impossible To them acceptable terms
or 10 prevent public outcry Tor reputation.
In thu United States there l3O cities whose Imam
cia condition nave had Wow IN making Theses re.
Oi these ciilcs 20 nave population oi 5000
aud upward Their net total debt, nearly as IL can
be asceriancd alter dcducting The SINKING funds Is
sle2, 200 900 ext we have II cities whose popua-
tion 40 600 100 100, and whose aggregate in
debtedncss Is s4J 100000 We have, then, 81 cities
with population OF 900 TO 10000, and whose aggrc
gate debt amounts 10 nearly $o6,0OOv0O The total OF
these "a cities than baif OF that which cstl
the total Tor tho United States Their aggrc.
gStc Is Sj93, 3I3, 561
1t Is dillcu every one VIII admit who has made
the attempt, to obtain the st,tlstics OF the smaller
cities, IN the Stnto ol New YORK. For many
| O. tho Western aud souihcrn st ties the attempt,
thou. pvoviug gtoat labor, IS seldom rewarded by
much information. For Dl,! six cities below
2l0JO y, pu.ation DDd That tho to III debt IN IS
| WAS s5l,UUJ,OO. Hence the 40 cites whose
statistics have anylizcd had, la 1915 net