The Penn's Grove record., 1904-12-09
Bank Taxation and Democracy.

Bank Taxation and Democracy.
The suit of the City of Salem against
the County Board of Assessors, for re-
imposing $19, 900 on that City which
valuation the assessors in Salem had
taken off the National Bank building,
has been decided by the State Board of
Taxation in favor of the County Board
Of Assessors as will be seen in another
column.
The claim that the bank buildings
should not be assessed at full first cost,
as shown by sworn statement, because
other adjacent properties are not, is
well taken on the surface. But bank
ing corporations stand on a different
basis from that of individual citizens,
because they are granted special priv
ileges which individuals are not.
No objections can be made to banks
of deposit and discount. They are
most needful and beneficial in facilitate
ing modern exchange of business. They
promote a system of saving and safe
keeping of money. Small sums which
would lie idle are loaned in the lines of
trade and greatly increase the working
capital of the country.
But when farmers and other property
holders see bank stock paying from 5 to
II per cent. at the same time laying by
a surplus; when they see bank stock
selling in the open market at from so
to $50 per cent above par value; when
they see the value of bank stock has
increased from two and a half to three
and a half times in value within the
past forty years while the value of their
farms has shrunk about as much, many
believe Banks are privileged classes by
legislation and should pay a full share
of taxes, partly because of special priv
ileges, partly because of greater ability
to pay, and benefits received.
National Banks were first chartered
to make a most profitable market for
government bonds during the Civil
War. They were a war emergency
measure. Now the national debt is
continued in order that the national
banks may have a bank note basis.
Each bank must have a certain amount
of government bonds. When the bonds
are deposited in Washington the banks
get back the full amount in bank notes
which cost only J per cent a year. When
they are loaned the bank draws two
interests.
The fact that the government-the
people-should be kept in perpetual
bondage to continue the national bank
ing system, and that the people should
pay two interest in order to get enough
money for the needs of commerce is
wrong. 1t is the granting of special
privileges. 1t is not in the interest of
the people. IT is not democracy. We
have never heard a mai in speech, nor
by writing directly defend it.
We hear some one say: Shut up.
The money and bank questions are a
dead issue. You have been licked.
Why say more?
That is the opinion of time serving
politicians who know no principles but
success. When a man changes his
principles because he fails to win and
for policy sake reverses himself in an
,ttempt to win he looses honor and re-
apect when he looses the next time.
Men with just such opinions are the
Oh IS who have put the Democratic par
ty in the worst slough of defeat this
year. Democrats should be democratic,
and not ape Republicans. When demo-
cratic officials and leaders become most
strenuous in striving to reduce taxa
ton on special privilege classes demo-
cracy is betrayed, because other people
have to pay taxes to make it up.
We speak not from prejudice, but
from principles and justice. The fact
that one'ssbeliefs.are in aminority, ever
after numerous defeats does not make
the majority right. The triumphant
winner al afford to be contented with
victory without resentment, even if he
has not respect and charity for those
who still hold to their principles in de-
, feat.
The chartering Of banks to issue
money is a Observation-Disclosures
doctrine 1t has never been democrat
ic and never "a be, because it is the
granting of special privileges, a right
l which belongs to the people.
Thomas Jefferson quit Washington's
cabinet because of his difference with
Alexander Hamilton on the first U. S.
Bank. While defeated he did moi
chan ge his principles, but to his death
opposed the issuing of money by
banks. Andrew Jackson gained greal
political notoriety by killing the second
q. S. Bank. He was opposed to the
issue of wildcat state bank notes but