New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-11
FEDERAL TAXATION OF BANKS.

EXAMINATION OF STATE BANK AFFAIRS By THE
COMMISSIONER OF INTERNAL REvENUE-HOw
THE NATIONAL BANKS WILL BE AFFECTED.
An under orders from the CON-
state banks in this. city is now in pro-
gress The purpose Of it is to ascertain the
their returns for federal taxation deposits and
TO ascertain the correctness of the returns by the
books of the banks. There are four exam n
e ers now r. here who are accredited, by letters
from Commmissioner Raum. Their appear
ance on this errand has caused no little
surprise and alarm among bankers, n tional as well
as State; They went ilr;t to the Manhattan. Com
pany, No. 40 Wall-st., but the managers of that
bank requested delay until they could consult the
The, Bank of North America, the German Ameri
can, the Corn Exchange and other State banks have
Deen examined already. IN two the
nvesti cation has required several days, for it ex
tends back for about sixteen years. Inc question
at issue, however, is not how II was decided
IN part IN 1864, and again in 1866 by the Secretary
OF the treasury declining to support the claims of
pending IN Chicago based in part on the same claim
ms is that the banks should pay the Federal tax
OF one-half of one per cent on the total average
amount OK thelr deposits, and not on the net amount
after deducting exchanges, as the banks now make
up their returns. The claim is pronounced absurd and
prep0Sterous by bank officers and although the
present examination had not extended beyond the
State banks, the officers of the National banks
know, if the Commissioners claim should be uu-
heid by the Treasury Department, that their turn
would come next.
President William Dowd. of the Bank of North
to Secretary. Window since the exam-
nation was begun. 1t has been decided that
the Commissioner shall not levy assessments for the
taxes until after the banks shall have been granted
a hearing. This has been fixed for September 3, as
Commissioner Raum will be absent from Washing
ton this month. Then q committee appointed by
the banks will 20 to Washington to OPPOSE the
claims. 1t is probable that the Tax Committee of the
Clearing House Association will take action in the
matter, and 1t is understood that the chairman
American Exchange National Bank, took some
papers relating to the question of the Bankers Con-
NSntIon now III session at Niagara Fails. He will
llot Dllng the matter up III open convention, but
there is likely to be good deal of informal and not
altogether quiet talk about it there.
The Commissioner can levy assessments only for
TWO years back; FOR the taxes before that time he
must bring suits in court. lie has consented to
Wlthlold the levy until the hearing, September s.
Inc position that he takes was held in 1866 by Cen
cral spinner, hat the Secretary OF the Treas
Ury ovcrruled the claim on the appropriations
3f q commit &c of bankers from New-York, Phla-
d-lphla and Boston. The president of a prominent
Nali-St. bank. referring TO tho action of the Com
missioner yesterday, SAID
The procecdiul probably will come to NOTHING
broker banks for instances its deposits any
day VIII run up INTO the millions, but actually
amount TO only q few hundred thOus nd dollars
rms tax would take 81 600, 900 from one of these
banks and nearly Tl,0uO,OOo from another. The
Commissioner would have to take the bank and its
Inc fact is Raun knows no more about banking in
a city Ike Newly DIRK than toad knows about max
ing Shoes
The same banker suggested that the banks wonld
nave an excellent claim III sct-o account of the
double taxation on capital The banks nav the
as double tax on the capital which was included
iii the deposits.