New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-20
A RECKLESS TAX PROPOSED.
DEPOSITS IN SAVINGS BANKS THREATENED.
DAoi'AAiioN WHICH WOULD INJUEE NOT
ALONE THOUSANDS OF INDIVIDUALS. Bur
DO MARM TO CITIES LIKEM1SE

-.
DO HARM TO CITIES LIKEWISE.
| Prom THE REGULAR CORRESPONDENT OPP The 1n,r,-y,.
1Np'hy, Feb. 10.-1hs Democratic State Admins.
"oh - reckless one II now proposes to tax
savings bank deposits. and this at time when thc
STATE debt is nearly cxtngushcd and when there is
no special need OF increased approximations for te
support OF the state government some 1900 900 =
oCo would thus be taxed. The instrument through
which the taxation of the savings bank deposits Is TO
be brought about Is estate Tax law" which has
Just been submitted to the Legislature by Professor
charles y. Collin OF Cornell University Law school,
and j. Newton Flero, of the law firm of Parker d
Fiero. of this city. In May last Governor Flower
under the provisions Of chapter 6G0 OF tie Laws OF
l5"2 appointed Professor Collin and Mr.. Fcro as
| counsel 10 examine The laws OF this and other
states relating to taxation and to submit Il report
10 the LEGISLATURE upon the results of their inspection,
with tax law. The sum Of 1000 appropriated
to pay their expenses. Mcssrs. Ficro and Collin sub
mted Their report and the proposed tax law" TO the
Legislature few days and both documents have
just now got into print and being examined by
the members OF the Legislature.
one OF the features OF tie report and OF the pro
posed law which the members OF the Legislature re-
marked first that Mr.. Fcro and Professor Collin.
while having the courage TO recommend taxation Of
savings bank deposits, had rot had the equal cour
TO insist upon the taxation OF anything else.
but the savings banks containing the savings
Of the poor people Of the state must suffer. II Is
true that Mr. Ficro and Professor Collin gncously
say in their tax law that only deposits over 81 900
shall be taxed hut these FORM In the opinion OF one
OF the leading savings bank presidents half OF the
Total deposits of a6lj 00000O In the savings banks
The proposal Of Professor Collin and Mr. FicrO, there
FORE is tax $500 OOO 900 in the savings banks
The interest paid upon most Of this $500. 100000 Is
on the average only 3 per cent II Is the poorer
dcpcsitors who receive IL and per cent on their
money. But II the state Steps In at the suggestion
of Mr.. Fcro and Mr.. Collin and taxes this money
which is only receiving per cent interest, in the
opinion OF the savings bank pre- ldcEs 1t Will Nee
from the savings banks. and they VIII not be able to
pay longer the higher rates of interest which they now
pay the smaller depOsOr-. There were 1.jlG,2SD de
ppsOrs in the savings banks year ago ana poDdD!
there arc 10000 the present
but more corporations than the savings banks are
interested in this Bill ana Interested 10 defeat II.
The greatest the cities OF She State who now sell
their bonds Mt phcncmcnally high rates. owing 10 the
savings banks taking them for Investment speaking
OF tho Farmers ana Mechanics Bank Of Albany. which
has savngs-hank branch said: The city Of New
ork would be abb" 10 market her bonds NJ rates
50 high 10 practically give the savings banks a
return OF only u per cent on their money III the
ritys bonds were II for the savincSank deposits
the savings banks Of this state would be- an iltogehr
cheerful day for Wall Street. We should unqucsuOn.
ably have TO throw upon the market large blocks oi
orr securities In order TO get money 10 pay on 'n'
savings bank dcpositors demanding the rturn o. 'hrir
money Addcd 10 this. should have Ia call In orr
m rtgagcs. \ large proportion ~ the r'ooUo.ooo
held by the savings banks Is invested In mortgages
upon city property