Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-03-04
PETITION TO raE LEeIsLAruas.
To His Exceilency the Governor and the
Honoraole the Legislature OF the State OF

To His Exceilency the Governor and the
Honoraols the Legislature OF the State OF
California:
The undersigned respectfully beg leave to
ask you to consider the Injustice Of taxing
depositors in savings banks for their deposits,
notwithstanding the assets Of such banks
have all been assessed.
sThe fact that the entire deposit of the indi-
vidual Gepositor is comprised IN, and forms
part of, the assets thus assessed, is incontro-
vertible, for the Withdrawal of any deposit
diIninishes, by the exact amount thereof, the
tota! OF the assets, either in the coin on hand,
or by causing money out at interest to he
called in.
Taxing all the assets of the savings bank is,
therefore, unayoidably taxing the deposits,
and a direct tax ON the deposits in the hands
| OF the deposition 10 :. second tax upon his
money.
1t IS difficult to conceive any just ground
for this discrimination against the most in
| dustrious, the most thrifty, the most prudent
members of the community.
! Inc landowner, the ship-owner. the man.
utactmer, the merchant, are taxed only once !;
the depostor twice.
The new Constitution has established the
tax on mortgages so as to avoid the double
taxstion TO which that tax gave rise before.
hen why should this instrument be made to
justice of which the old Constitution was
never guilty? Under that Constitution the
deposits We're assessed, but not the mortgages
OF savings banks created by and representing
these same deposits.
The injustice is the more glaring on ac-
count OF the unequal operation of the tax, as
many dep3sitors cannot be found By the AS
SCISSOR, and as, moreover, the larger deposits
IN savings banks belong to great extent to
! al
residents of this State. The first tax, on the
assets, they bear in common with all other
depositors, but the second tax cannot be as
sessed against non residents, nor, il it were,
could it under any provision Of law be col
lected. They escape this tax.
The small depositors are, however, by far
the most numerous, and are residents of the
State. Upon them, the laboring people,
those least able to bear it, and most deserv-
ing of your sympathy, this tax will, there
fore, mainly fail.
They, whose education and experience do
not enable them, like their more fortunate
fellow citizens, to invest their own money,
have not only to pay the bank officers for at
tending to these matters for them, but are,
under this BILL also taxed twice by repubi
can Government.
We implore you to protect their interests.
Ii is for their benefit especially that savings
NuIlAS III III ClFiALSu CbLstUNuljlCs utFC DcEU
established. These banks assist the people
materially in laying up small sums to IN
crease till homestead can be bought, chill
dren educated, old age provided for, and the
hundred other rneritorious purposes, for
which habits of saving should be encouraged.
1t has been said that a number of savings
banks have not fulfilled their mission, but we
fail to see why grief against former savings
bank managers should justify this onslaught
IL. y. A !
in this connection it should be borne in mind
that the Bank Commissioner Act, which
owed its Inception to the present surviving
banks, has caused the insolvent banks to be
closed up, while the remaining banks are re-
ported by the Bank Commissioners to be in
good condition. The Commissioners recon-
mendations for additional legislation will rem
der the supervision more effective and tie
banks more secure,
The undersigned, depositors and others,
confidently approach you with the request
that the double taxation referred to be elm
mated from the bill, a measure demanded
alike by justice, equity and public policy.
The immediate practical result of such
taxation is easily shown. The dividends
paid by the savings hanks, in January last,
have averaged about 6l per cent. per annum,
whilst the prevailing rates of interest do not
promise much in the future. Only the
STATE county ana Guy taxes, on inc compare
lively very small amount Of coin on hand were
deducted from the earnings. Under the new
system, taxes will average less than hereto
fore; yet when they are levied on all the
assets Of the bank. and paid out of its earn
ings, and then a second time paid by the
depositor out of the dividend which lie re-
ceives. it is plain. and beyond question, that
the average dividend remaining in the hands
of the depoaitor would form a smaller per-
centace than is yielded by the 4 per cent.
United States bonds, than which no invest
ment offers greater security or greater avaiia-
bility for conversion in coin, when needed.
1t is hut natural to suppose that savings
would be largely 50 invested, instead of being
kept in circulation through the loans made
by the banks.
JAMES G. PATRICK,
d. HENsHAw WARD,
J. c.. kITTLR,
w. w. HoLLIsTER,