The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1881-01-19
Ingerson on Internal Taxation-PropOsed
Relief of National Banks.
[special Telegram 10 the Chicago Times


Ingersoll on Internal Taxation-PropOsed
Relief of National Banks.
Especial Telegram TO the Chicago Times.I
WASHINGTON, Jan. 1.-THE Carlisle Sub
Committee of the Ways and Means Commit
tee held a meeting to-day and heard argu-
ments on the bill to abolish the tax on bank
deposits and circulation. Colonel Bob
Ingersoll made the chief argument in favor
New Haven, Conn, opened the subject by
offering and reading memorial embodying
the following resolution, adopted by the
National Board of Trade:
Resolved, That Congress- be requested to en-
act such legislation ms will relieve banks under
the National banking law from The tax on de-
posits and that on circulation to the end that
they may be in a position to purchase literally
what bonds are proposed to be issued by the Gov
eminent at a low rate of interest, and to use the
same as a basis for such circulation as may be
necessary TO meet the wants of the business COM
munity.
With this resolution as a text, Mr.. Inger-
soil said: Il suppose it is admitted by every
body that an internal tax should be avoided,
if possible. The system was adopted as a
necessity, and it is conceded by all that it
should cease to exist at the earliest prac-
ticable period. Next to having no internal
revenue tax is to confine that tax to as few
articles as possible. Where many articles
are taxed, business is impeded just 10 that
extent What is worse, there is produced
swarm-a brood-of spies, infOrmers, and
officers of all kinds. that 1T seems to me, Is
about as Objectionable as any result can be.
Mr. Ingersoll here read the report of the
Commissioner of Internal Revenue. to show
that the amount of internal revenue col
lected last year war largely in excess
of the needs of the Government He
also read from the reports of the Secre-
tary of the Treasury and the Comptroller
OF the Currency their recommendations in
favor of dispensing with some of the present
internal revenue taxes. He then continued:
'The only question to be decided by this
Committee and by CongrASs is as to- what
articles reduction shall be applied, whether
certain taxes shall be repealed, or whether a
corresponding reduction shall be made upon
all articles Now il strikes me, the fewer
articles we tax the better. 1t alsostrikes me
that at the present time, when the rate of
interest that it formerly received, tax like
the one on bank deposits and checks ought
to be repealed. In the first place, but little
revenue is derived from that source. In
the secodd place, its collection is attended
with about as much difficulty as would
attend the raising of ten times the
same amount Of revenue from other sources.
There is another point: A tax is still levied
upon deposits in savings banks. 1t does not
amount TO q great deal. 1t amounted last
year to something over $4,000. Now it
seems to me that that is a tax which ought
certainly to be repealed. The savings of the
people should not be taxed, bnt. on the con-
trary, every incentive should be held out 10
them to save their money. As to the tax
upon checks that, of course does not come
upon the banker; it is paid by persons who
deal with the banks, and were il not so
small and r)ublesOme matter | think no
one would care particularly about its repeal;
but as il produces little revenue and is
troublesome, think it ought TO be repealed.
Nv first reason for repeal of these taxes is
that we have enough OF revenue without
them. My next argument, that it is better
to collect our taxes from as few arti
cles as possible. / would like to
see the time when we should
collect only on one article, and then after
that l would like to see the time when we
would collect on none. would like to see
this system OF espionage done away with en-
tirely in the United States 1t seems to me
that the best way to get rid of it is to reduce
as rapidly as possible the number of articles
upon which we levy tax. So far as | am
concerned, have no great sympathy for
banks, or monopolies, or any other system
that can take care of ITSELF but for Savings
Banks l do feel a certain sympathy. l
think the tax on their deposits should be
interest in advocating repeal of the tax upon
banks generally, because the more tax you
put upon the banks the higher you make
the interest. AS always have been and al
ways expect to be borrower. / have direct
personal interest in keeping the rate
of interest as low as possible.
TLaughterl When the Government is get
ting its money at 4 per cent, and proposes
to get it at 8 per cent. very soon, you can
NOT axpact that paopia oonarallv tbrouvhOut
the country are going TO pay interest at the
rate of 6. or 10 per cent, as they have done
heretofore. If per cent bonds are issued,
they will be the basis of ba'.k circulation,
and where that is to be the basis il seems to
ne that everything practical should be done
by Congress to make it a sufficient basis to
enable banks to do business upon that basis
and at the same time to realize n reasonable
profit. IL you tax banks on the deposits
and circulation, and. besides. States keep OIL
taxing them, 1 do not believe they can do
business successfully upon a 3 per cent.
bond basis The State taxes that banks
have to pay are much greater In proportion
than those which Others pay. Land is sell
dom assessed at more than One-third of its
value; but where money is the subject of
taxation il is assessed at it's face value"
Mr.. Carlisle remarked: Eyes it is I'M
doubtedly a fact that bank deposits are fire.
quently taxed several times over"
Eyes; in short" continued Mr.. Ingersoll,
it seems to me that this, in the first place,
is an unjust tax, and. in the second place,
an unnecessary tax. / think it would be
better to raise the revenue that we need
from high wines and tobacco and other such
articles"
Sugar for instance" said Mr.. Morrison,
ironically.
mo" said Mr.. Ingersoll, az think the tax
should be taken off sugar. If this Commit
tee has to choose between taking the tax
off banks or off sugar, ! say take it of
sugar"
No action was taken on the bill by the
Committee.
A citizen of Macon, Miss, has entirely
abandoned tobacco after seventy years con-
tinuous use of it, If the gentleman has used