The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1882-07-27
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HANK TAXATION

SW ~ y t1'9&lR 4 I RlIlllG:l,.,
HANK TAxXTIoS.s
Does II Come ON the borrower or ths
ADMINISTRATIONS from swest virxinia
for Rellef-Speech BIZ Col. Ben Wffson,.
Congressional Record Of the 2d. n n i
The Hou.e being In Committee Of the Whole Of,
the state the Union, and having under consdsr +.
alton the bin ~ r. No. esssl 70 reduce internal.
Mr.. Wilson said Is q "A \. 4 - x ~
MIR. CnAlRaAN:-I shall detain the com
mittee but a short time, US rose more for
the purpose Of giving notice Of one or two
amendments dealre to oiferin connection
with the pending bill than anything else.
! am 10 favor Of the general features Of this
bill with the amendments which I have
suggested and shall, at tho proper time,
propose for the action OF the committee.
on yesterday I gave notice that would
move to strike out the clause which relates
10 the tax upon the capital Of the national
banks. y am not In favor OF exenpting
their capital from taxation, and principally
Tor the reason that they derive profit not
only from the earnings OF the banks, but
also from the interest upon the Govern.
ment bonds upon which their operations
are based. = (, :. I. a .,rtIpI ~ AM
With all Difference to the distinguished
gentleman from Pennsylvania, MIR. Kelley
! DO not think the case he cites Of the
banker Is analogous 10 that Of the farmer,
and we have no right To do 10 nder the
circumstances. He has no special priv.
leges from the Government such as have
been accorded to the National banks. The
bankers operations are based upon the
bonds OF the Government, and the interest
upon them Is paid to the banks. The far
mer has nothing Of the kind in his favor,
and l shall move to strike out the provision
relieving the capital Of the National banks
in the first section OF this bill. n 81 Is g,
! am, as I said yesterday, In favor Of re-
moving the taxes from deposits in banks,
because, as believe, that tax imposes an
unequal burden upon the borrower, that
class OF energetic. men who carry on
the active business industries Of the coun-
try. 1t works a hardship upon the poorer
classes. 1t does not come from the man OF
wealth. This tax constitutes a portion OF
the expenses OF the banks. The depositor
pays no part OF that expense. The borrower
pays the whole Of 1t. Now, sir take the
case that arises in almost all banks. The
man OF wealth makes adeposit; his money
isput in the vaults Of the bank; for his ac-
commodation and for It's safe-keeping The
bank is taxed by the Government on the
deposits thus made. The bank has the tax
to pay, and in turn it must be repaid by its
customers, its borrowers, and not its de-
posltors. The man OF wealth borrows
nothing; he does not need 10 borrow; he is
a depositor; he pays nothing on his depos.
its, while the total expenses OF the banking
operations is necessarily imposed upon the
borrowing class. i.l RI
! see the operation OF this in nv own sec
ton; in IN agricultural, a manufacturing,
and a mining country section. The Dor
rover who carries on the industries OF the
country, men who have to raise money by
loans from the banks, are compelled TO pay
such rates OF interest as will enable the
banks to meet all their expenditures, and
this interest charge is regulated to some
extent by the expenditures.
Mr.. House-Will the gentleman allow
me to ask him question ,2s5t5 :
AIR. Wilson-Certainly. !5SS ), .57
Mr.. House-Does the gentleman believe
that ii the tax is taken of OF deposits any
bank in the United States will charge any
less rate Of interest IA 3gl = q :
Mr.. Wilson, do, sir. 81
Mr.. House--Well, do not.
Mr.. Wilson, am satisfied that it would
be so. JI,& ~ Ejsj- 8. M s s ,.tt1 i
Mr.. House The gentleman has greater
faith than I have then. s. M =
Mr.. Wilson-Why, Mr.. Chairman, l am
satisfied that I speak accurately when
state that it is the policy OF the banks in
my part OF: the country 10 reduce the rate
Of interest. ~ e} 3jt S&! S ~
Now you take tax from deposits and
check stamps and you will reduce the
banks expenses, and enable them to loan
money at the rate OF per; cent interest,
and hope at a lower rate. ~ 10
Before this bill shall be- finally vsted
upon, l shall offer al amendment fixing
the maximum rate OF interest at 6 per cent.
The banks are the creatures and Congress
the creator; il Congress can create aud tax
or not tax, and supply its circulation, it
can prescribe the rate Of interest.
During the war we were compelled some
times to pay l2 per cent, then. 10 per cent,
then down to s per cent, and now some Of
the banks loan at per cent. Our business
men, our agriculturists, and those engaged
in mining and manufacturing are content
to borrow at the rate Of 6 per cent interest.
now desire to have the Z following
amendment read. ;.g 81 q; Z; 5t 4 :.
The Clerk read as follows: 4 4. y. 8.
And from and after The passage Of this act no ma.
tlunal bankinS association organized under tho
laws OF the United States thal charge or receive any
!nte.es; discount OF exchange exceeding The rate Of
per cent Der Rnnum for the loan Of auy money or
IN The purchase or discount Of any note, BILL or
violating this provision shall forfeit the whole
amount OF Interest. discount, or exchange 80
charged or received. iS'slF ~ si,5I = -. 4,
Mr.. Wilson, had occasion some time
ago to examine the tax account Of a ma
tioual bank in my own town. Upon that
examination I found the bank is charged
| With more than 3 per cent taxation, ma
tional, State, county and municipal.
II the Government continues to impose
high taxation upon banks the result will
be that the people must continue To pay
high interest, and we cannot expect to be
relieved in that regard until we in some
way give proper relief. s,} 60 e.. g
Mr.. Chairman, desire to read the fol-
lowing letter IS an expression, OF popular
opinion upon this subject in the district
which l have the honor to represent. 7 It
is signed by the distinguished Democratic
Governor Of our State, and by other promi.
nent, intelligent gentlemen OF both polit-
ical parties. Democrats and Republicans
united in expressing the opinron that this
bill should be passed: s,lH;7g.&gli y,
J - WHEELING, Wisr VIRGINIA, June Il, 1850,
on banks and bankers, and the abolition OF the
check stamp, seems to be laid aside and almost for.
gotten BY Congsess. The session Is probably near
Ing It's Close And this burden we have been ~ Ger.
Ing unjuAty for years seems likely 10 remain unless