The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1878-02-22
senator PEumb's First speech.

PEamb's First speech.
From the Congressional Record,
of the 7th inst, we notice that SEN
ator Plumb took an active part in |
debate on q question involving the
taxation of deposits in savings
banks. OF his remarks the Wash
ington Post says:
Mr.. Beck, IN his opposition to any fur
Their reduction of taxation on banks, W as
ably seconded by Senator Plumb, whose
first speech stamped him as pointed
taIker. He talks rapidly and effectively;
does not need even an instanps delay To
collect his thoughts or form his language.
We give below a portion of his
speech:
l desire to call the attention of
the Senate to just exactly how this
rule works which is upon the stat
ute book and which is observed in
reference to the taxation of deposits
in banking institutions in this coUn
try. have before me the report of
the commissioner Of internal reven-
ne for 1877, and find that there are
of deposits in the banks of the Uni
ted States, exempted from taxation,
in the banks called savings banks.
S773, 1863, 800. / find that in the State
of Massachusetts, the deposits with
banks and bankers other than ma.
tional banks are $23S, S77, 900. and of
that amount only about twelve mil
lions are taxed, showing an exemp-
ton in that State alone of S226, $685.
600. No wonder money is cheap
in that section of the country. OF
this $773, 1863, 300, $6S0,00O,6S1 is in
the states of New York, Massschu-
sets, New Hampshire, Maine,
Rhode Island, Connecticut, and
New Jersey, while in the states Of
ida, Georgia, Iowa, Kansas, Ken
igan, Nebraska, Nevada, North Car
olina, Oregon, South Carolina, Ten
nessee, Texas, West Virginia and
Wisconsin every single dollar of
deposits is taxed.
In the state of Pennsylvania, out
of $91 100000 of that character of
deposits, eighty millions are taxed.
In the State of Ohio, out of $50, COO, =
900, thirty millions are taxed. In
the state of Illinois only two or
three millions are exempted. and by
reason of the failures which we are
now seeking to ameliorste the eff
fects of, to these people in Chicago,
there will not be a single dollar tax
ed. In the state of Missouri there
is about 100000. The effect of it
is that, with the exception of the
states that l have named within
which the exemption exists, less
than S50,OOO,OO0 applies 10 the re-
naming states of the union.
| Mr.. President, there is no more
reason why the capital that goes in
to manufacturing in Massachusetts,
New Jersey and New York should
be exempt from taxation than the
capital that goes into the beef and
into the pork and into the corn oil
Missouri, Kansas, Indiana, Illinois
and Iowa. Some years ago l was
in the town of Middletown, that has
one of the oldest banks in New Eng
land, the Middletown Savings Bank,
carrying deposits amounting to &c.
100000. The treasurer of that in
stitution, now dead, told me that
| ONOL a Ll1ll1OA va SA1t " 0E
loaned to manufacturing establish
ments in the town of New Britain.
The manufacturing interest of this
country and the mercantile interest
congregated on the sea board, carry
the bulk of this capital without any
tax, while the western portion OF
the country, that is obliged to bor-
row its money, not only borrows
that money at high rates of interest
but pays a tax on it after it gets it.
More than all that, this is paid on
what is called a commercial deposit
when by reason of that fact il ought
to exempt more than the savings
deposit; and why? Because it pays
taxes two or three, and sometimes
four times over. For instance, a bank
in Kansas or Missouri carrying 6
current deposit of over 100000 il
required by law and also as the die
tate of a sound business policy, to
keep q certain portion of that in the
banks of st. Louis, Chicago and
New York, as part of its reserves
as part of the capital it keeps for an
emergency to draw against bills OF
exchange. 1t is taxed in the bank
of Kansas or Missouri; it is taxed
in the redemption agency at Saint
Louis, and at Chicago, and at New
York; SO that it is su bject really tC
two, three and sometimes even four
taxatione, while this capital, which
as I said is engaged in commercial
business as purely and solely as that
is not taxed at all. 1t makes diff
ference of one or two per cent. il
amount.