306 THE FISCAL PROBLEM IN MISSOURI 
taxed at general property tax rates and the tax on the shares 
of national banks discontinued, since that would result in a 
very decided competitive disadvantage to the state banks. 
The desire to retain the state and local revenues derived from 
the share method of taxing banks has led to the continuance 
of the method of taxing other intangibles at general property 
tax rates in the face of declining valuations. If it be granted 
that it is more difficult to reach the income from intangibles 
for the income tax so long as they are subject to the general 
property tax, the loss of revenue from the property tax on 
bank stock is probably the only way out of the difhculty. 
If the federal statute governing the taxation of national 
banks is revised in such a manner that the states will be able 
to tax state banks and national banks uniformly by a method 
that will yield adequate revenue commensurate with the tax- 
paying ability of the banks without recourse to a system of 
taxation like the one now in effect in Missouri, it will then be 
possible for state and local income from bank taxes to be 
augmented. It is hoped that the Federal Government will 
soon recognize the difficulties with which it has surrounded 
the taxation of all banks as the result of the restrictions on the 
taxation of national banks. So long as the federal statutes 
remain unchanged, Missouri must choose between the present 
system and one of the other three methods by which national 
banks may be taxed. The loss of revenue resulting from the 
discontinuance of the taxation of bank stock at general 
property tax rates can be justified on the ground that the 
elimination of money, notes, bonds, etc., from the general 
property tax base is most desirable. if the best results are to 
be obtained. 
In analyzing the possible sources of additional revenue, 
one is, therefore, faced with the fact that the elimination of 
money, notes, bonds, etc., from the general property tax 
base is a practical necessity and that there will be a result- 
ing loss of revenue not only to the state government but to 
the local governments as well. It therefore becomes neces- 
sary to consider possible arrangements that would compen- 
sate the local governments for the loss of revenue.