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

gle national bank in his State Will,
there are seventeen State banks with &
capital of S644, 200. If the amendment
Of the Senator from Mississippi prevails
as understand ID, he continues the
Federal tax on the banks in his State
with not single national bank there.
Mr.. George-The amendment offer.
ed does not propose to tax anybody OF
any bank. It proposes simply to leave
this tax where it is now to be relieved
at the same time and to the
same extent that relief is given
to other great interests ofthe country;
that is all. -.
Mr.. Davis, of West Virginia. 1 do not
propose to discriminate.
Mr.. George-The people pay the
tax.
Mr.. Davis, of West Virginia-The
people do not pay anything to the Cen
eral Government direct except the very
taxes the Senator proposes to continue.
Mr.. .George--What is the difference
so far as the people are concerned
whether they pay the money directly
or indirectly? They lose the money.
Mr.. Davis, of West Virginia.-If this
amendment prevails, these banks will
pay to the General Government as well
as TO the State.
There is something to be said, and
there has been considerable said, about
the national banks paying no tax on
their bonds. / say to my friends on
both sides of the Chamber that the
bonds owned by the national bank are
the only United States bonds that pay
taxes. For instance, there are 1926, 000,-
900 of the United States bonds of the
national banks held by the government
as security for their circulation. They
are all taxed; the stockholders of every
bank are taxed to the full extent of
their stock; so that the States all over
the country get from the 1926, zoo, 900
bonds owned by the national bank a
State taxation, and they are the only
United States bonds on which they do
get State taxation. So that, if our en-
tire debt was held by national banks to-
day, the States, would derive regular
taxation from them.
There is little bank in the town in
which live, and took the trouble the
other day to write to theeashier 10 know
the bank is So, 900. He.says:
"Wepaid from January to July l,
1882, $500 Government tax"
This, remember, is national bank OF
$4,000 capital. ~
"In addition to this we pay State tax
about $3.50 corporation 1915. Total ST.
1S5, or more than 4 percent. on the cap
ital of the bank"
That is the heaviest taxation / know
of. 1t is heavier than on any other
species Of property.
Mr.. George-How much General
Government tax?
Mr.. Davis, of West Virginia. Eight
hundred and twenty-nine dollars.
Mr.. George-What percentage?
Mr.. Davis, of West VirginIa-Four
per cent. in all. There has been some
thing said by some of my friends about
the national banks being great makers
of money. That may be in some cases;
but the COmptroller's report shows that
their average dividend, taking the coun-
try over, was less than per cent.
Mr.. George-The Senator says the
bank pays the tax. understood his
colleague to say that the bank does not
pay the tax but that it is paid by the
customer. Which is right?
Mr.. Davis, Of West Virginia. say
about who pays it ultimately;
but L say we are both right, the bank
pays and the people pay.
Mr.. GeOrge-Then you pay 1t twice.
Mr.. Davis, of West Nirginia.-No,
they do not pay it twice. The banks
collect it from the people and they pay
it here. My colleague said that indirect
ly the people paid it; he did not say di-
rectly.
/ simply wanted to allattention to the
fact more particularly that the State
banks are 10 be the sufferers and not the
national banks if the amendment of the
is disagreed to, so that it is
not the national banks especially, but
it is the State banks to very great eX-
tent that will be affected.
Let ME state what the deposits of the
TWO are. There are nearly twice as
many State banks and private banks as
there are national banks in this cOun-
try. There are 2,ll5 national banks,
and there are 4,6Sl States banks, saw
ings-banks, and private banks in the
/ understand that the ameAd-
ment is intended to relieve the State
banks entirely from taxation, so fur as
the General Government is concerned.
OF course they will pay the State tax
just the same. The amount of deposits
that the State banks have is greater
than the amount the national banks
have. The amount of the deposits of
State banks is about Sl,5OO,O 900,
while the national banks have about
81 300, 100000 So the greater portion of
this tax comes from the State banks and
private bankers, and not from the ma
tional banks.