The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-02

sary to preserve the value OF the circulat-
stated that his object was to drive, home
for redemption the issues of State banks.
No action was had, and on the following day
Mr.. Miller. of New York. thought the
time vas too snort. and Gnosed p to In
OF New York. defended the State banks
which were born before the soverpmens-
Wilson as to a national currency, but
thought the rushing of capital into that
system was not desirable: Mr.. Herman, OF
New York, was opposed 10 the penang
amendments. and thought the federal gov
eminent had no right to destroy. the state
banks. Another motive, he said, was TO
force a market fer the sale OF United
States bonds required to secure the circu-
latiOn of national banks. amendments Of
Pennsyivania5' relating TO circulation of
converted banks and the date To De fixed,
were rejected.
State of Indiana, which On Dec. 81, 1851,
had nearly $4,000 in circulation, which
and said the object was 10 destroy State
banks for the benefit of the national banks:
Various amendment were offered, agreed
to or disagreed to, and the amendment of
Mr.. Hooper. as amended, was then DIS
agreed TO.
of Iowa offered the following amendment
as an additional section, which was agreed
And be it further enacted, That every
national banking association, State bank
or State banking association shall pay a
tax of 10 per cent on the amount of notes
OF any State bank or State banking asso-
citation paid out by them after Jan. 1, 1866.
The vote by tellers was close. standing
yeas 81. nays 81. and at the close of said
days session the bill was reported with
amendments On the following day, Feb. is,
the House proceeded TO consider the amend
ments reported, and the said amendment
substituted by Mr.. Wilson was agreed to
by the very close vote Of yeas 6S nays 81.
Globe. p. @6.( The affirmative vote was al
most solidly Republican. while the mega
tive vote, largely Democratic, included
some twenty Republican members, princi-
pally from Eastern States. the New York
members voting almost soldily against 1t.
Mr.. James Brooks changed his vote in
On a motion TO table the said motion to
reconsider the vote was q tie-yeas, IL;
nays. Il. Speaker Colfax voted in the az
frmative: and the amendment was thus
adopted by his casting vote.
on Feb. 81 Mr.. Sherman reported said bill
amendments, one being to strike out Sec
ton 5. which was the Wilson amendment
adopted by the House. Senator Sherman
stated that a majority of the finance COM
mittee were in favor Of the House PROPOSE
ton. but thought it best to submit the
question to the Senate. Senator Ramsey,
Of Minnesota, offered the Donnelly amend
ment in the House as an amendment 20 the
| section. Senator's Hendricks of Indiana,
Johnson of Maryland, Powell Of Kentucky
and Henderson OF Missouri favored stTik-
ing ont the section. No Senator spoke IN
the negative, as Senator Sherman pleaded
for n vote. on account Of the fact tn9t IN
two days the Congress expired. (See Cong.
| Globe. %. 123S-124+.)
At the conclusion of Mr.. Henderson's
speech a vote was taken on the motion to
strike out, resulting-yeas 20; nays, Y. 1t
was not a strictly party vote, several Re
publican Senators voting yea, but no Dem
ocratic Senator voted in the negative. The
Senators from Massachusetts and New
York voted in the negative, and the act
was approved March 8, 1865. this tax being
imposed by Section 8 Of said act.
1,466 STATE BANKS.
The original national currency act became
law on February %. 1863. but no circulation
was issued until January, 1864. At the date
of the passage of that act there were 1,466
State banks, with an aggregate capital of
$4O5. 900, 900. and an outstanding circulation
of S23S, 100000. In 1863 there was in circula-
ton S312, 600, 900 Of United States notes, $16,-
100000 fractional currency, and 1890. 900 Of
demand notes, and about SIS, OO0, 900 In spe-
Gle on the Pacific coast. or a total Of $685.
100000. Under this tax the State bank cir
culation on Oct !, 1865, had been reduced
to SIS, 0O0, 600 and the national bank circula-
ton had increased to $171, c0O,0 coo. No rec
ommendation was made either by Control
Ter of the Currency Clarke or Secretary Nc
Culloch, but in the next Congress first ses-
sion ~Thirty-ninth CongreSs) the commit
tee on finance reported an amendment to
the bill Qi. r 513) to reduce internal taxa
ton, etc, and to amend the act OF June
80, 1864. and acts ~amendatory thereof. strik-
ing out all after the enacting clause of
Section o OF the act Of March 3, 1865. and
inserting in lieu thereof the following, viz. /:
That every national banking association,
State bank, or State banking association
shall pay a tax of 10 per cent. on the
amount Of notes of any person, State bank.
or state banking association used for cir
c%ulation and paid out by them after the
first day of August, 1866, and such tax
shall be assessed and paid in such manner
as shall be prescribed by the Commissioner
of internal Revenue"
That opnnn6rnnn4 -vo- l1-A ar-
debate or division, and became the second
paragraph of Section 3 (bis) Of the act of
Jmiy u, 1856. CStat; at Large. Vol. IA. p.
1867 The act of February 8, 1875 Second
session of Forty-third Congress, Stat, Vol.
10, p. 300, again changed the phraseology
as to this tax, Sections 10 and 20 reading as
Sec. 10. That every person, firm. asso-
ciation' other than national banking asso-
cations, and every corporation, State bank,
or state banking association, shall pay a
tax of 10 per centum on the amount of
theIr own notes used for circulation and
paid out by them.
Sec. 20. That every such person firm
association, and also every national hank.
ing association, shall pay a like tax of 10
per centuIn on the amount of notes of any
person, firm, association. other than a ma
tional banking association, or of any cor
poration, State bank or State banking GO
ISOLATION, or of any town. city, or munic-
paid out by them"
The bill in which these sections annear
was reported from the ommitte on WAYS
ana means on June /, 1874 first session For
ty-th1rd Congress), and passed the House
under suspension of rules by a vote of yeas
49, nays %, after a brief explanatory state
ment by Mr.. Dawes. who said the bilJ vas
intended 70 correct errors of phraseoloev
and revise existing laws. No reference u9s
made to the matter of this tax, and
was not made a political
question. Messrs. Cox, Morrison. RanJen
Snd Wood voting yea Inc bill passed the
senate with amendments, and was oct
poned until the second session of that Cor.
Sress, and became a law on Feb 8 1s7S 90
stated, no change being made in s,id seq.
lions. &c
No further legislation has been had On tbis
SUBJECT, ana Section 10 of said act of Feb
3, 1919, now appears as Section 24l2 Of tbe
revised Statutes, and Section 20 as Section
SilS. Revised Statutes. The first conca~teJ
effort TO repeal this tax was made in me
thousands of printed petitions (sert oIt
from New York city, were received from
almost every State praying for the I-e7Ov3I
or all taxes whatever on State ard M tionai
banking institutions.
On Feb. Is. 1913, Senator Morrill,. OF Yer.
mont. from the committee on finance. sinh.
mltted an elaborate adverse renort lhereo,
In that report the practice Of getting ar
nachine-nlade" petitions was .5harply crit.
lcised. is 1t not apparent" says Senator
morrill,, that the right Of petition is cheaD.
ened when. instead of being the spontaneous
action of the people, it is brought into FIRE.
OF recruiting agents engineered, If not sun.
ported, by one common mead cantero" THE
subject of taxation OF banks. etc, 'Ias ofs
cuSSed generally, and the cOnclu Sfon orrivaf