The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-09-15
THE BANKERS CONVENTION.
A DISCUSSION OF ALL THE LEADING
FINANCIAL QUESTIONS OF
THE DAY.
silver VS.. GOld-The Taxation Of Banks
Municipal Indebtedness.

Municipal Indebtedness.
New York, Sept 14.-The third days ses-
sion of the bankers convention was opened
ut II o'clock by President Hall.
Mr.. Williams of Albany. offered the follow
ing resolution:
Resolred, That we pledge the banking inter
ests to aid the government in it's efforts to re-
st re specie basis
Referred.
John Hiltz, of Washington, D. c., offered
the following:
Resotped. That in the opinion of this con
vention it Is advisable for the Federal gov
ernment to exercise surveillance over the say
ings banks. loan and trust companies, and
fire, marine and life Insurance. companies
Referred.
The special order Of business for the day,
the question of the taxation of banks, was
then called up and discussed al length
Chauney 2. Williams, of Albany, opened
the discussion by reading Il paper on the
legal aspects Of the matter. arriving Mt the
conclusion that the present system of taxa
tion was not only unjust, but decidedly ile-
gal. He quoted ut length from State laws.
Mr.. Thurman, Of Troy, N. Y, next sub
mitted some remarks on the taxation Of
bank shares in the city of Troy, compared
with the taxation of other property, with the
design of showing the inequality Of ASSESS
ments and the injustice Of taxation. He showed
that real estate is assessed at one-third of It's
actual value and banks at more than two
thirds Of their market value; he held that
the tax on profits was especially unjust. Af-
ter quoting statements on the subject Mr..
IaI Il
not ask that shares of banks should be as
sessed for less than their market value, but
did ask that the same rule of valuation be
applied In estimating the value of all kinds
Of property
Mr.. James Buell., secretary OF the conven-
tion, said that II should be understood that
the gathering was not q general assemblage
of all bankers, but of representatives of the
banks. For instance, three gentlemen come
from one State with authority to act for and
represent all the banks In that State, they
agreeing to abide by the action of the con-
vention. In this way it Is estimated that
over 5000 banks are represented. SO that the
entire banking community are in unison.
Mr.. Buell. then read paper on
municipal bonds. He said that our
credit had received severe injuries
from excessive issue of municipal
bonds. Great recklessness has existed
In issuing these bonds and In the creation Of
local Indebtedness The aggregate of NUM-
cipal bonds outstanding in this country is
about 81, 100000, at an average OF per
cent. It would take, therefore, over SIT 00O, GOO
to pay the interest The rapid increase of
this enormous indebtedness, within the past
few years, gives great cause for ALARM The
paper then gave series of statistics showing
the municipal debt In various cities and the
manner of its increase. The only remedy is
that a constitutional amendment be passed by
the various States which shall impose the
proper restrictions upon the issue of munich
pal obligations.
A paper, by L. NJ. Lewis, of Philadelphia,
was then read, giving an abstract Of the laws
in Pennsylvania with reference to bank taxa
tion and the efforts which had been made to
amend them and bring taxation to an equal
basis with that assessed upon ordinary prop
erty.
The executive committee reported the fol-
lowing resolution covering several other reso-
lutions which had been referred to them:
Resolyed, AS the sense of this convention
that the business Of the country demands
that the banking interest of the United
States be relieved from all taxation by the
general government except in annual tax on
their circulation to cover the expenses of the
currency bureau, and that the taxation of
bank shares by the States be levied in the
same manner, only to the same extent, and
subject to the same privileges and immuni-
ties as other personal property.
Resotred That in the opinion of this con-
vention silver money as a subsidiary cur
rency is desired by the people, and that it's
free but not enforced use will greatly aid in
restoring the value of our paper money.
The resolutions were adopted after adding
number of amendments by the executive
committee.
A resolution was issued returning vote of
thanks to President Hall for the manner In
which he had discharged his duties of chair
man of the convention.
Mr. Hall returned his thanks in appropri-
ate terms, and then declared the convention
adjourned sine die.