Mexico weekly ledger., 1879-08-14
THE NATIONAL BANKS
I'm Council at Sarat0ga--Tl,ey
Present some Interesting
Statistics.

Statistics.
The convention of the American
Bankers Association assembled at
Saratoga on the 9th inst. j. ID. Yer
mile presided, and James Buel read
the annual reports.
Mr.. Buel's report contained the
following statement: The matter of
taxation has been brought before the
courts. In Ohio the courts have de-
cided that banks are unconstitution-
ally taxed, but in New York an adj
verse decision has been made. Both
these cases will come before the
United States Supreme Court, at
Washington, in October. If the Ohio
ssidea'' is sustained. banks have no
special privilege except circulation.
They ask, therefore, that they may
be taxed only as other corporations
and property are taxed. Now, they
are taxed by the United States and
also by the States, the same as other
corporations and property are taxed
in addition to the heavy taxation OF
the Federal Government. Within the
next five years a large majority ofthe
charters of the National Banks will
expire, and unless some radical change
is made in the taxation of this kind of
capital, nearly all of these banks
must 60 into liquidation. The CAPT
tai now in the National Banks will be
invested in some way, where it will
quite probably escape taxation alto
gether, as most other personal prop
erty does. There have been retired
from New York City alone, within the
past few years, over thirty million
dollars of banking capital and surplus.
Probably not one-tenth Of that capt.
tai is nov subject to taxation. There
are now eighty million OF national
bank notes, to which the banks are
entitled, but they sec no profit in
their use, and hence do not call for
them. On the 30th of last month,
the total amount OF currency in cir
culation was 1874, sol, 994.87; worth
it's face in gold. This is about nine
millions in excess Of the purchasing
power of the total outstanding cur
rency AT any previous period OF Amer
lean history.
For the year 1877, the National
Banks with a capital Of four hundred
and eighty-tive millions, paid an ag-
gregate of near sixteen millions of
taxes, divided as follows: United
States taxes, seven million; state,
county and municipal taxes, ear
nine million. Dividing the country
into geographical sections, New Eng
land paid on near Il hundred and
sixty-eight million, one and one-tenth
per ceut. {. $. taxes, and one and
o~ne-seventh per cent. local; the
Middle States, on near one hundred
and eighty-three million capital, pad
one and seven-tenths per cent l.. ).
taxes, and one and nine-tenths per
cent. local the Southern States, on
thirty-two million capital, paid n
and three-tenths per cent. Us. taxes,
and one and four-tenths per cent local,
and the western states and Territories,
on one hundred and two million CAPT
tai, paid one and foUr-tenths per cent.
l.. S. taxes, and two and one-tenth
per cent. local. That this taxation
is, in the aggregate excessive, seems
to be agreed. The taxes of neither
class would he complained of. 1t is
the conjunction Of two kinds of taxa
ton which is the grievance, and
which has not only arrested the nor
NAL development Of the system, but
threatens some unfortunate changes
hereafter in the location of National
Banks. The average local tax for
the Middle States is one and nine
tenths per cent, but for the State of
New York it is two and th~ree-tcnths
per cent; while for the State of
Pennsylvania, it is only segen-tenths
per cent. Comparing cities, it is on
ly one-half per cent. in Philadelphia,
while in New York City it is two and
nine-tenths per cent, and IN Albap,
Hches the great figure
per OF three