The New York herald., 1879-08-09
MILLIONS In IT."
Close Of the Financial Con-
.gress at Saratoga.
BANK TAXATION DENOUNCED.
Savings Institutions in Theory
and in Practice.

The Bankers Convention reassembled ut eleven
o'clock. The attendance large. though smaller
than yesterday. report from the Executive Coun-
Gil was adopted recommending that dues from banks
to the association be as follows:-From banks and
private bankers with capital stock less than
$780, 000 IS per annum from banks and associations
whose capital stock exceeds 100000. $40 per an
mum.
The Executive Council was authorized to I'LL any
vacancy occurring the list of vice presidents
ing the year.
resolution was passed declaring all presidents
and charmen of clearing house associations in the
United States honorary members Of the association.
Mr. L. Halsey Williams. cashier OF tho Fifth Ma
tional Bank OF Pittsburg. Pa. delivered an address
on the changes made by the new Revenue act Of
Pennsylvania in the taxation Of banks, with his
tory of the origin. progress and of the effort
to obtain new legislation. Little no effort has
been made by the banks, said he. to have the tax
laws of this State changed. they being content with
existing laws. The old law March 81, 1870. p. L.
49, provides that all the shares of national banks
located within this stste and of banks and savings
institutions incorporated by this state shall be
able for State purposes ut the rate Of three mills per
annum upon the assessed value thereof; and for
county school. municipal and local purposes at the
rate as now is, or may hereafter be. assessed
and imposed upon any other moneyed capital in the
hands Of individual citizens OF this State.
In any bank savings institu-
tion aforesaid shall elect to collect annually
from the shareholders thereof of one per CEN
tum upon the par value of all the shares of said
bank savings institution, and pay the same into
the State Treasury or before the Goth day Of
January in every year, the said shares. capital and
profits shall be exempt from all other taxation under
the laws of this Commonwealth. With
few exceptions the three mill tax the assessed
value Of the shares of the banks paid prefer
to per cent on the par value Of the stock.
The only objection to the law that 1t levied
tax on surplus. and thus created premium on
| weakness; but the whole the burden was SO
light that it was thought best to make effort to
| have il changed.
THE NEW TAX LAW.
| During the last session OF the Legislature gen.
| eral revenue bill introduced which levied tax
| Of six mills the assessed value bank shares.
| Through the timely Intervention of prominent
bank official of Pittsburg, whose stock Is assessed ut
240 par Of 10O the rate of taxation reduced
After reading the nsw law Mr.. Williams con-
tinued. From this draw three conclusions:
rTa-ohsres Oh Inc S.A,e canAs are taxeo tour our
| local purposes-school. municipal, &c.-the same
other moneyed capital which in most cases Is moth
Second--Natonal banks. under this law. not
| taxed at all
! TAird-Such banks as elect to pay six mills on the
par Of their stock to the State exempt tax
| alton for local purposes and such banks, and such
! only are required to make return to the Auditor
stock list of stockholders market value of stock, DC
On the whole. the law is fair specimen of the
| crude legislation are treated to subject
| quiring = knowledge and experience of which the
| average legislator Is not possessed.
| THE REFUNDING OPERATIONS.
In our previous conventions the work Of refunding
the public debt has been discussed from its earliest
] Fessenden and their successors in the Treasury
After reviewing the history of the loan and fund
ss 1Ss e Williams m as
The total amount OF bonds now outstanding. au-
thorzed by the Refunding acts Of 1870 and 1871 is
81 499 962 $50. or this amount 1896 00O,O0O
! sold tor refunding the high rate bonds. and
$1O4. 900 900. in round numbers, sold for the
| purposes of redemption and silver coinage. The
sales of bonds for refunding win stand as follows on
August J. 1870
| Five per cents $500 900 900
Four and half per cents. 1876, ,O0O,O00
Fo"r per Hi'oz1'V
The Secretary of the Treasury has now authority
to issue about $lO400o before the limit OF the Re-
funding act is reached; but no high rate bonds will
be redeemable until january and June. 1881. when
per cent bonds to the amount OF $2S3 $50 be-
come DUE The high condition Of the public credit
by the fact that in two and years
bonds Of the United States to the amount of about
| $95O.OOO.000 have been sold. chiefly through the
banks aud. on the 21st of July this unprecedented
financial achievement rounded Off by the redomp-
tion of s16O.00oOO0 in ten-forty bonds The result
in the way Of economy. Of the refunding operations
is an immediate saving about $40 900 in the an
| nual interest paid by taxation.
CAUSES FINANCIAL REVIVAL.
| Secretary Sherman has the credit of closing the
labors his predecessors in thoroughly saiisfsc
tory manner and without producing the slightest
trouble IN the fnsncial affairs OF the country. OF
course the rapid progress which has been made
must be ascribed to u number OF concurrent
Fyrst-The arrangements of the Secretary aud OF
the banks have been Of the most judicious and
| lightened character The admission OF the Sub
Treasury to Clearing House has enabled the gov
ernment to pay and receive immense sums through
the banks without the perturbation and strain Of
the banking machinery which are 30 well
remembered as incidents of funding operations dur
| ing former years Moreover, bankers and bank off,
Gers throughout the country have contributed to
the harmony and success OF the complicated move
ments OF refunding III q manner which well deserves
to be placed on record by this association.
.yecond-The progress Of refunding has been f.
clitated by the easy condition of the money markets
throughout the commercial world.
Third-The favorable balance OF trade must not be
overlooked among the conditions OF success which
have been to 30 gratifying an extent enjoyed by the
FonrM-The improvement in the credit of our gov
ernment abroad has been noteworthy and the market
for government securities has received stimulus
from q multitude OF minor which have
moved rival securities from the bourses where they
were formerly most in favor, and have made way
for the government bonds & Of the United States,
regarded not inferior In point of credit to those
of most OF the securities OF European
TAXATION GREAT
Mr. Fleming OF Allegheny, Pa, wished the Execu-
tive Council would adopt some general plan to bring
grievances of banks before Cong ress. Each member
may have plan of his own but what does It accom-.
plsh. Let the Executive Committee. in the event
Of their not considering this their duty. commit
tee appointed by the chair. draw up u memorial to
Congress The facts rightly presented to the
average Congressman" will bring relief. Despite
the prejudice against national banEs. when the mat
ter Ii fairly brought before them they will give
justice.
Mr.. Nelson, of Selma, Ala, thought taxation q
great wrong against tho natural right OF man, the
price paid for the privileges of society and govern
ment. To oppose unjust taxation we should DO
united. We should not come here State banks
against national banks. but should put our shoulders
to the wheel together and thereby get relief from
Congress-. National banks object very strongly to u
tax Of deposits We all object to tax on deposits
We do not come here to discuss the question
OF State taxes. Leave all individual states
out Why shall pay taxes bank when ] am not
taxed an individual? Tho two cent tax on checks
Is small, but we feel 1t. Representatives OF tho
people impose this tax on the people. We would all
be in favor of wiping 1t out. But tho crime of the
whole matter In the ten per tax circulation
MEASURES FOR INFLUENCING coNGRKss.
Mr.. Nelson said that the banks should concentrate
their forces aud advance like an army IL they would
secure the relief asked for.