This section is from the book "The Law Of Banks And Banking", by John Maxcy Zane . Also available from Amazon: The law of banks and banking.
The state bank tax applies to amounts paid out by the bank in its previously issued notes, as well as to payments in the notes of other banks.1 But it applies only to notes payable in money.2 Due-bills upon stores payable in goods or upon railroads payable in money are not taxable under it.3 Certificates of deposit nor drafts of one bank upon another, nor any other evidence of indebtedness not intended to circulate as money, would be subject to the tax. But there do not seem to have been any attempts to evade the tax by state banks, nor any attempt to put their paper into circulation.4 The pitiful attempts of the states by penalties imposed to compel state banks to maintain their notes at par5 or to pay specie for them6 are good illustrations of the utter worthlessness of the old state bank currency.
 
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