The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-01-17
NEED PAY
No LICENSE
National Banks in
Hawaii Are
Exempt.
PAY THEIR TAX
TOUNITED STATES
Attorney General Dole Gives an
Opinion on Wailuku Bank
to Treasurer Wright.

IN AN opinion given to the Execu-
1 tive Council yesterday Attorney
- General Dole holds that national
banks in Hawaii cannot be compelled
to take out territorial banking IL
cense
The Attorney-General rules that the
National Bank at Wailuku in paying a
revenue to the United States cannot
be taxef upon its franchise by the ter
ritory.
The opinion is given in full as fol-
lows:
Territory of Hawaii,
Office of the Attorney General,
Honolulu, II. l., Jan. 16, 1902.
Honorable VIM. H. Wright,
Treasurer of the Territory of Hawaii:
Dear Sir:--I am in receipt of your re-
quest for my opinion whether the First
National Bank at Waikiki. Maui should
take out a banking license as required
in Sections 724 and 725 Of the Penal Laws
of 1897.
Sections 724 and 1926 are as follows:
THE annual fee for a banking license
shall be seven hundred and fifty dollars.
The tenn banking for the purposes of
this act, shall mean the engaging in.
buying or selling drafts or bills of ex-
change on banks or persons in other
countries, or the receiving of deposits
and paying of checks thereon. Any per-
son holding a banking license may also
under such license loan his own money,
or collect for, receive, or take the
money of another, and loan or advance
the same to another or others, charging
q higher rate Of interest than is allowed
to the depositor; or may loan the moneys
Of another, or negotiate loan to or
from another, for commission or other
compensa tion."
Sections 5214 and 5219 of the Revised
Statutes of the United States are as fol-
lows: IN lieu of all existing taxes,
every association shall pay to the Treas
urer of the United States, in the months
of January and July, a duty of one-halr
of one per centum each half year upon
the average amount of its notes in cir
culation, and duty of one-quarter of
one per centurn each half year upon the
average amount of its deposits, and
duty of one-quarter OF one per centum
each half year on the average amount
of its capital stock. beyond the amount
Invested in United States bonds. Moth
ing herein shall prevent all the shares
In any association from being included
in the valuation of the personal proper
ty of the owner or holder of such
shares in assessing taxes imposed by
authority of the State within which the
association is located; but the legislature
of each State may determine and direct
the manner and place of taxing all the
shares of national banking associations
located within the State, subject only TO
the two restrictions, that the taxation
shall not be at a greater rate than IS
assessed upon other money capital in the
hands of Individual citizens of such
State, and that the shares of any ma
tionaI banking association owned by nom
residents of any State shall be taxed
located, and not elsewhere. Nothing
herein shall be construed to exempt the
real property of associations from either
State, county or municipal taxes. TO the
same extent according to its value. as
other real property is taxed"
National banks are not liable TO a
privilege tax imposed by city ordinance.
Chattanooga vs.. Mayor, etc, HeIsx,
Tennessee. S14 Nor in view of the fact
that the shares alone are taxable, to
any tax upon their business imposed by
the municipal authorities of the city
where the bank is located. Mayor OF
Macon VS.. First National Bank. 90 Ga.
G4S In the case of McCulloch VS. the
State of Maryland. Wheaton, 316, It
was held that Congress had the consti-
tutionaI right to authorize the incorpor-
alton of banks; that bank so incorpor-
ated had a right to establish its offices
of discount and deposit within any State.
and that when SO established, the State