The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-05-23
TAXING BANK STOCK.

AN ANIMATED DEBATE IN THE STATE SENATE
WHY THE STOCK SHOULD BE ASSESSED AND
HOW.
ALBANY, May 90, 1877.
Tho bill authorizing tho taxation OF stockholders OF
banks taken up IN Committee OF the Whole as
special order IN the Senate this morning. tho question
being upon tho substitute offered on Thurs
day last by Mr.. Jacobs Mr.. wcllmnn moved
10 strike out the clause permitting a de.
duction OF securities exempted from taxation
when owned by other persons corporations, tho ef
feet being TO place bank shares upon the
ing other personal property. Coleman was opposed
TO the original bill as II came from tho Assembly, for
tho that It did relieve banks from any OF
tho burdens now resting upon them, but he
thought tho porposcd substitute went too
far because u allows the value Of
real estate and government securities owned by banks
TO be deducted from the taxable Valuation Of share.
holders The amc ndmcnt offered taking out govern.
mcnt securities from the amount TO be decided bis
APPRECIATION. ns II placed shares OF stock upon the
same basis as other personal property. lie sad tho
taA levied upon bank shares greater In this State
than IN any other state. aud that II We would assist
tho State In maintaining Ito supremacy In business we
must lessen tho burdens OF taxation.
Mr.. cERARp's ARGUMENT.
Mr.. Gerard thought wo were not we'll Instructed
this subject IS ought TO be- and he expected 10
be an interested listener He said the average rate Of
Tax paid by the banks TO tho national government
Two per cent and TO state authorities three per
cent more, making i've per cent Ia sall
or. say average OF Jour and half i've por cent
wnlch is more than they can stand. He questioned
whether II was not paDc policy 10 have aud iostor
sold financial institutions which would DO able 10 re.
levc distress zines OF panic ana assist maintain
ing crcdit ana good order.
ut. - John did not favor either OF the cmcus
H. though; he people were not prepared consent
TO the deduction OF government sccurti from tho
taxable valuation Of property He should vote Tor the
Assembly bi A. he believed u tho farcst now under
consideration. WAS right and necessary that banks
have surplus and that surplus, TO tho extent OF Al
least twcniy per cent should be exempt IRON tax
alton.
THE SYSTEM oT ASSESSING.
MI starbucs SAID The purpose oil each OF the promo
siiions was TO break up. the present system OF as
scssing As al present constituted assossors assess
aud tx Dauk 81 ,res IN the di.rct wbcro the bank ~
located but the substitute would distribute the assess.
mont 10 hundreds OF different places and IL would 10
Impossible 10 reach all that should be as.
sessed. Mr. Spraguo gave an experience
o banks In tho CITY Of Buffalo that TAX rent and other
necessary expenses amounts 10 seven per cent and
tho only way to DO business Is 10 arge twelve
per cent Tor loans and there is nothing 50 Gcprc
70 manufacturing aud other as the btgh rates
~ tutcfcsi bey nave ~ pay Hn-sncnusotts can out.
SOL an. ,Liug la, 80 can manufacture h tGey
cat SCI money Tor SIX or per cent while usvo
70 pay Al least ten per cent. Is mistake suppose
that this burden OF bank taxation falls upon banks.
" TAILS tho map can.