Treasury, as will equal the amount required and not so returned, and shall pay the balance, if any, to such banking association: circulation may Provided, That no circulation shall be withdrawn under the provisions of this section until after the fifty-four millions granted in the first section shall have been taken up. SEC. 7. And be it further enacted, That after the expira- Banks in States tion of six months from the passage of this act any banking having excess of association located in any State having more than its pro- remove to States portion of circulation may be removed to any State having having less than less than its proportion of circulation, under such rules and regulations as the Comptroller of the Currency, with the approval of the Secretary of the Treasury, may require: Provided, That the amount of the issue of said banks shall not be deducted from the amount of new issue provided for in this act. Approved, July 12, 1870 ACT OF JULY 14, 1870, CHAPTER 257. AN ACT TO REQUIRE NATIONAL BANKS GOING INTO LIQUIDATION TO RETIRE tion to deposit money to redeem Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That Banks in liquidaevery bank that has heretofore gone into liquidation under the provisions of section forty-two of the national currency outstanding ciract, shall be required to deposit lawful money of the United States for its outstanding circulation within sixty days from the date of the passage of this act. And every bank that may hereafter go into liquidation shall be required to deposit lawful money of the United States for its outstanding circulation within six months from the date of the vote to go into liquidation; whereupon the bonds pledged as security for such circulation shall be surrendered to the association making such deposit. culation within six months from date liquidation of vote to go into bonds may be sold. And if any bank shall fail to make the deposit and take otherwi-e up its bonds for thirty days after the expiration of the time specified, the Comptroller of the Currency shall have power to sell the bonds pledged for the circulation of said bank Certain banks exempt from above provisions but to report assets and liabilities. at public auction in New York city, and after providing for the redemption and cancellation of said circulation, and the necessary expenses of the sale, to pay over any balance remaining from the proceeds to the bank or its legal representative: Provided, That banks which are winding up in good faith for the purpose of consolidating with other banks. shall be exempt from the provisions of this act: And provided further, That the assets and liabilities of banks so in liquidation shall be reported by the banks with which they are in process of consolidation. Approved, July 14, 1870. Taxes on State banks, bankers, &c., to be paid semi-annually. What is to be con ACT OF JUNE 6, 1872, CHAPTER 315. AN ACT TO REDUCE DUTIES ON IMPORTS AND TO REDUCE INTERNAL TAXES, AND SEC. 37. That the taxes imposed by section one hundred and ten of the act entitled "An act to provide internal revenue to support the Government, to pay interest on the public debt, and for other purposes," approved June thirtieth, eighteen hundred and sixty-four, as amended by section nine of the act of July thirteenth, eighteen hundred and sixty-six, to reduce internal taxation and to amend the act aforesaid and acts amendatory thereof, upon the deposits, capital, and circulation of banks, or persons, associations, companies, or corporations engaged in the business of banking, shall hereafter be paid semi-annually, on the first day of January and the first day of July; but the same shall be calculated at the rate per month as prescribed by said section, so that the tax for six months shall not be less than the aggregate would be if the said taxes were collected monthly, as prescribed by said section. And the words "capital employed," in said section, shall sidered as capital. not include money borrowed or received from day to day, in the usual course of business, from any person not a partner of or interested in the said bank, association, or firm. Savings banks And the exemption from tax, authorized by said section, of deposits of less than five hundred dollars, made in the name of one person, in associations or companies known as provident institutions, savings banks, savings funds, or savings institutions, is hereby extended to deposits so made of not exceeding two thousand dollars. 37. By the regulations of the Internal Revenue Bureau, these taxes are to be assessed monthly, and returned to the collector as before, but the collector will collect the same only once in six months. deposits to extent of $2,000 exempt. NOTES RELATIVE TO TAXATION OF BANKS UNDER EXISTING LAWS. On and after October 1, 1872, no tax will be imposed on notes, bills of exchange, etc., except "bank checks, drafts, or orders," on which a two-cent stamp will continue to be requisite. (Act of June 6, 1872, chap. 315, sec. 36.) The tax on dividends expired December 31, 1871. (Act of July 14, 1870, sec. 15.) The special tax on capital ceased May 1, 1871. (Same act, sec. 1.) United States taxes are now levied on national banks under section 41, act of June 3, 1864, chapter 106. (See pp. 125, 160.) And on State banks and bankers under section 110, act of June 30, 1864, chapter 173, and section 37 of the act of June 6, 1872, chapter 315. (Sec pp. 142, 158.) There is also a law imposing a tax of ten per cent. on notes of "persons, State banks, or State banking associations" paid out by national or State banks. This is, virtually, a prohibitory tax. (See pp. 145, 146.) The shares of national banks may be taxed under State authority within a limited extent. (See p. 126.). Items subject to duty. When to commence. REGULATIONS AND INSTRUCTIONS IN RELATION TO PAYMENT OF DUTIES BY NATIONAL BANKS. By the forty-first section of the act entitled "An act to provide a national currency, secured by a pledge of United States bonds and to provide for the redemption and circulation thereof," approved June 3, 1864, it is made the duty of the Treasurer of the United States to prescribe the form for making return, by each national banking association, of the average amount of its notes in circulation, the average amount of its deposits, and the average amount of its capital stock beyond the amount invested in United States bonds, for each half year from and after the first day of January, eighteen hundred and sixty-four. In compliance with this requirement, a form for such return has been prepared, and copies are furnished herewith. Under the law, a return is to be made within ten days next succeeding the first days of January and July, in each and every year, for the preceding six months. The penalty for default in making the return within the time fixed is two hundred dollars. Items subject to duty. The items made subject to duty by the act are circulating notes, deposits and capital stock. Dates of commencement of liability to duty. The return of these items from all banks that have before made returns of them will be for the full semi-annual term of 181, 182, or 184 days, as the case may be; and of all banks that have not before made returns of these items, as follows: Upon circulating notes, from and including the date of their first issue. Upon deposits, from and including the date of the first deposit received by the bank. Upon capital stock, from and including the date of the certificate of the Comptroller of the Currency authorizing the commencement of business as a national bank. Amount of each item subject to duty. The amount of each item subject to duty is the average Amount. amount thereof for the half year for which duty is due. Rule for ascertaining average amounts. I. For banks making estimates from daily statements of balances. Add together the daily balances of the item, from the Average amount, proper date of the commencement of the liability of the item how ascertained. to duty, (including for each Sunday and holiday the balance of the first preceding business day,) to and including the 30th day of June, or the 31st day of December, as the case may be. This aggregate of daily balances, for the first six months of any year, will be divided by 181, the number of days from January 1 to June 30, except in leap year, when the sum will be divided by 182. The aggregate of daily balances for the last six months of any year will be divided by 184, the number of days from July 1 to December 31. II. For banks making estimates from weekly statements of balances. Banks not making daily statements, and which obtain their averages from weekly statements, should add together the weekly balances, including for each day, in any fractional part of a week, one-seventh of the weekly balance next preceding such fractional part. The aggregate of balances for the first six months of any year will be divided by the number of weeks from January 1 to June 30, (25 6-7, or 26, as the case may be.) The aggregate of balances for the last six months will be divided by 26 2-7, the number of weeks from July 1 to December 31. (Banks having items subject to duty for periods less than a half year, which make their estimates from daily balances, will divide the aggregate of the balances of each item, for the time for which it is liable to duty, by the number of days in the half year; and banks having like items, which make their estimates from weekly balances, by the number of weeks and fractions thereof in the half year.) The quotients thus found will be the average amounts subject to duty for each six months respectively, and should be entered in the statement under the heading "Dutiable amount," and duty is to be computed thereon at the full semi-annual rate. Duty on circulation. The duty on circulating notes is one-half of one per centum Duty on circulaon the average amount outstanding for the six months. tion. |