COMPTROLLER OF THE TREASURY. 21

similar provisions. scattered through our Revenue Laws, has limited
the taxation upon the National Banks to the shares of their capi-
tal stock.

This method of taxing these Institutions gives them an immense
advantage over individuals, from the fact that the loans and dis-
counts, and other available assets of these Institutions, as a general
rule, amount to about three times the amount of the shares of their
capital stock, at its nominal value. In the hands of individuals, the
whole amount of these securities (except mortgages) would be liable
to taxation, while the National Banks, although favored by the Fed-
eral Government with privileges not attainable by individuals gen-
erally, or by other Corporations, are to this extent also favored by
State legislation. The capital stock shares of the several National
Banks in this State in 1870, as appears by the Report of the Comp-
troller of the Currency, amounted in the aggregate to the sum of
$13,240,202.50, while, by the same Report, it appears that the
loans and discounts of said Banks, at the same time, amounted to-
$20,132,076.18, and with the addition of other available assets,
amounted to the large sum of $27,779,531.07.

When the large advantages which these Institutions have over
individuals is considered, it seems very unreasonable that they
should be backward in paying into the Treasury the small amounts
which the General Assembly have thought proper to tax them; but
experience has shown that a large number of them have taken ad-
vantage of the want of penalties and forfeitures for non-payment,
to omit the payment of their taxes altogether.

In consequence of the exemption above spoken of, and other ex-
emptions which the nature and plan of taxation adopted for these
Institutions render available to that end, the visible property of
these Institutions cannot be levied upon or distrained for their taxes
in arrear, and no adequate penalties or forfeitures being provided by
law to compel payment, the same has from time to time been suc-
cessfully evaded.

In addition to other amendments of the Revenue Laws, I recom-
mend the passage of such laws as will provide penalties and for-
feitures against the Institutions, and their financial or other proper
officers, which will compel the payment of the taxes in arrear, and
ensure promptness in their settlement hereafter, an Act providing
for these alterations and amendments will be proposed to the Gen-
eral Assembly by this Department.