Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1877-02-09
Congress and Bnnk rnxntlon.


Congress and Bank Taxation.
One Of the most important reforms which
is to be urged in Congress relative to bank
legislation, is the repeal OF those taxes
which arc so mirchievous in their opera
ton both upon the banks aud upon the
financial interests OF the country. The
probability Of the early success of this pro-
ject Is the greater, ns the banks are united
IN the effort to obtain it, and rs their claims
are obviously reasonable aud moderate.
Ever since the war-tnx system was organ
lied IA dozen years ago the banks of this
country y-private, State and National
have been subject to donblc taxation.
They have been taxed as formerly by the
State governments, and they have also been
tn Ked by the National Government. The
Nationa tn xes, ,as we have frequently shown,
aro specifically war taxes; and us most
Of the other war imposts have been re-
pealcd, the banks argue that their war
taxes should also be taken of. Among
the reasons which they present in favor of
this relief, we find several which are worthy
Of special remark.
There is for example, the fact that the
existing pressure of taxation surpasses the
fiscal power of the banks. Every mer-
chant and capitalist knows that the bust
ness of banking is not na profitable as for
merly, and that it is emb ,rrassed with n
multitude of heavy burdens. These bur
dcns are partly fiscal md partly general
The former arc clearly set forth in the able
report Of the Comptroller OF the Currency,
an extract from which We give elsewh here.
Il is estimated that the banks are required
10 pay more than twenty five millions oi
dollars II year in taxation, of which the
National banks pay seventeen millions and
the private and State bInks eight millions.
OF these twenty-five millions, the National
government receives eleven millions, and
the State governments fifteen millions.
Now, as il has been admitted that nearly
one.half II this burden consists Of war
taxes which must sooner or later be remit
ted, and which ought to have been re-
pealed long ago, the equities Of the case
suggest the rcpsaling of all the federal
taxes en the banks, except the tax OH the
circulation.
A second burden upon the banks is duo
10 the approach OF specie resumption. To
this anticipation is in part nscribed that
accumulation in all our banks OF idle de-
posts, which there is not activity enough
to employ in the currents of Legitimate
business. There is pressure in every
part of the financial machinery which
closes up or contracts many of those ave-
nues of commerce and trade through
which the banks earn their profits. More
over, much of the strain attending the res,
toratiOn OF specie payments, will Of neces-
atty, concentrate its forces upon the bank.
ing system. For these and other reaAons Il
is clear that the complaints of the banks
are perfectly just and that banking institu-
tlona have to contend with peculiar EN- bar
easements, which render il eminently fit
that their fiscal burdens should be made
as light as possible.
II Congress should adopt the enlight.
ened course recommended, it will assimi.
late our legislation to that OF the Older
countries Of Europe, in none of which l.
any special tax paid by the banks except II
light one upon their circulating notes. Tc
illustrate the extent OF the popular Agita
ton in reference to bank taxation, we
might point to the newspapers where the
subject has been frequently discussed IN
connection with the suits which have been
recently decided In the varisua courts
Two OF these cases are reported In subse
quent pages of this issue. .-BGnker's Mroa
Sins for DECEMBER, 1876.
INEQUALITY AND EXCESSIVE PRESSURE OF
BANK TAKES.
Our reporter called OIL the officers Of sew
erRl banks this morning, aud from then
learned that the tax on the larger bank
amounted to from $500 to 81 800 per day
| This tax was 80 onerous that II completed,
walled in the efforts OF the bank officers
II any large amount Of the redundant cur
rency should be OIL deposit tor ssfe-keepinJ
on the part Of the owners, the bank stock
holders were compelled TO pay tax upoI
It, without having any opportunity of us
ing it. Again, should a holder Of lnrg
| quantity Of gold place the precious meta
In the bank on deposit, merely for sat
keeping, the bank was compelled 10 pa,
tax without realizing anything from il
| Should the banks officers be desirous o
increasing reserve for the purpose of re
suming specie payment, their Efforts wer
retarded by the enormous tax that was i'm
posed upon them, and thus an obstacl
was put in the way of effecting what i
considered to be desirable result Will
the present tax on capital, amounting I,
about per cent, several of the larger bank
had contemplated reduction OF their cap
ital FROM 40 20 80 pAr cent, as the onl,
safeguard against serious Injuries II no
bankruptcy. With tho rate Of discOun
fully two per cent. below the rate allowet
by law, the banks had no opportunity O
earning money sufficient to pay the take
| and current expenses. When the tax wa
first imposed il was willingly compile,
with "a u war measure, but now, 20 lonl
after the war had ended, and business re
dueed in consequence to less volume, re
qulring the use Of less money, some con
alteration was deemed necessary in orde
to save the banks from actual ruin, and thi
subject was TO be brought fully before tn
meeting "a. morrow. - Commercial AdveriiseI
Dec. l2th, 1876.
NO RELIEF EXCEPT FROM CONGRESS.
The subject Of bank taxation il YER
ably presented in the report OF the Comp
troller. So much public interest has bee
excited by this topic that Il demands
complete discussion. A petition to Con
gress is in preparation praying tor the rS
peal Of such bank taxes as are the mos
productive Of evil, and AZ there is a grow
Ing conviction In favor Of these impoati
the petition, VIC suppose, will receive
large number " signatures In all parts {
the country. The recent decil
ions Of the courts are regarded by man
versions M concluaiyely settling the queI
ton, that the only immediate relief 10 i
al present obtained by the banks from the
oppressive Rscal burdens musl be songl
from Congress. RnoHsial Chronicle, Dee n