Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1882-07-27
INTERNAL REVENE BILL.

speech esof Senators Camden and Davis
on. the Bill to Reduce Internal Rev
enne Taxation.
On last Thursday, the Senate in COM
mittee of the whole, having under con-
sideratiOn the bill to reduce internal
taxation. Mr.. Camden says:
Mr.. President, shall vote
against striking out the COM
mittee's amendment to this bill, because
l believe the amendment to be just and
proper. The amendment Of the Sena-
tor from Mississippi proposes to strike
out the committees amendment repeal
ing the tax on the capital and deposits of
banks and bankers, and also the stamp
tax on checks, vouchers, &c.
Now, first, in relation to the tax on
bank capital. The national banks are
already exempt from taxation on ali
the capital invested in United States
bonds, and are therefore, substantially
exempt from taxation on their capital.
Private bankers and banks chartered
under State laws, including savings in
situations, not having their capital in
vested in United States bonds, are not
exempt from taxation. This tax works
unequally between the two systems,
and therefore diScriminates against a
fair and equal competition in business,
which ought not to exist.
The second item is the tax on deposits.
This tax, in my judgment, never ought
to have been levied, for the reason that
il is tax upon the Indebtedness Of the
bank, which is liable to be called for on
any day; or, more properly speaking, 1t
is tax upon the bank for being the
custodian and assuming the response
bility of taking care of other peoples
property. The Indebtedness either OF
corporations or of individuals ought not
to be made the subject of taxation.
But, Mr.. President, in addition to this
there are other and to my mind con-
elusive reasons why both these taxes
should be repealed. All taxes are paid
by the people, either directly or lndl-
rectly. The banks do not pay this tax.
The customers of the bank pay It, just
as the consumers pay all other taxes.
The customers of the banks are the bor-
rOwers, and the borrowers are the men
of energy, push, and vigOr that create
the business thrift and wealth of the
country. The tax on the use or loan OF
money is, in my judgment, the most
Objectionable form in which a tax can
be levied, for the reason that 1t is tax
upon the producing energy and business
interests of the people. 1t is a tax paid
directly by the commission merchant,
the grocer, the mechanic, the farmer,
the planter, the grazer who buys stock,
the handles it, the lumberman, the
miner, and in fact all business and COM
mercial enterprise which is the founda-
ton of the wealth and prosperity of the
country, and indirectly paid by the
production and labor of the country
with an added percentage, for this tax
forms an item of cash to be taken into
consideration in all the transactions
from the borrower to the producer and
labOrer. AS rule, persons of sufficient
capital to be independent of bank ac-
cOmmOdations are not the men who are
engaged in the active industries and the
labOrious pursuits oftrade which cOntri-
butte most largely to the development
of the country and its business thrift,
and consequently capital does not pay
this tax.
And, Mr.. President, cannot refrain
from saying in this connection that the
disposition to discriminate against cap
ital invested in banking is in my judg-
ment unfortunate and unwise.
Banks are not only q convenience but
q necessity to the business interests of
the country, and do not believe the
Government should make the privilege
of banking the source of revenue or
speculation. The Government in re-
ehaTtering the bank reserves TO itself as
q royalty all the circulation ofthe banks
lost or destroyed, and it also collects
from the banks the cost ofpreparing the
plates and furnishing circulation. This
Is right; but in my judgment the tax of
per cent. ON circulation ought also to
be repealed as soon as the revenue re-
quirements of the Government will adj
NIT it.
Mr.. Davis, of West Virginia-I shall
occupy the attention of the Senate but
two or three minutes. l wish to state
few facts, not to make an agument.
Banks are as essential for the use of the
country and for its business as any other
branch ofindustry. Without Banks it
would require probably five times the
! amount of money that we have to
| transact business that is now transacted
in the country. j believe, taking the
country over, there is 81 per cent. of its
money business done by checks and
drafts.
Mr.. MOrrill-Ninety-fiv per cent.
Mr.. Davis, of West Virginia-I think
my friend is mistaken, taking the entire
country, but so far as the large cities
are concerned my friend from Vermont
is right. About 5 per cent. Of the bust
ness Of the great moneyed centers is
! done with actual money and 95 per
cent. with paper, bank checks, &c. So
conclude that banks are as necessary
for the business operations of the coun-
try rs any branch of industry, no mat
ter what it may be.
That being the case, ought we in any
way to try to discriminate against them
and to make tax upon them declare
that they are mOneyed institutions and
therefore ought not to be treated as all
other subjects of taxation. 1t seems to
me that it is bad policy in any person
or any party to try to array capital for
1t or against II. Labor and capital are
two Of the essential things of the world.
That business may be properly conduct
ed there should be no difference between
them. They should be friends and not
| enemies.
i find by examination of the figures
that the taxation on the capital of
State banks, and on that of national
banks IS very different. National banks,
as is known, to the extent of their
United State bonds are not taxed on
their capital. State banks and private
banks are taxed TO the full extent of
their capital. 1t occurs to me that if
you strike out from this bill the tax
upon capital you, without intending IL
l have no doubt, legislate in favor of
the national banks as against the State
and private banks. As to the tax paid
the by two, find by examination that
the State banks pay about double
the amount Of tax paid by the national
banks on bank capital. The State
banks pay ssh, 900. 1wish to call the
attention Of my friend from Mississippi
Mr.: Georgel TO these facts. / find that
the State banks pay on capital lone OF
the items proposed to be stricken QUIT