A savings bank is taxed on its deposits, and a state bank is taxed on its capital-stock.
The first private state bank was opened in 1817; an act of 1831 provided for a safety fund guaranteeing bank circulations and derived from a 41% tax on capital stock and a 1 o% tax on profits; but this law was modified in 1842, the tax being removed from banks giving specie guarantees; and a free banking act was passed in 1851.
During practically the entire period before the Civil War their note issues constituted a smaller proportion of the capital stock than those of any other state.
During the period from 1890 to 1901 twenty national banks retired from business, and the total capital stock was reduced from about twenty millions to about thirteen millions of dollars.
The taxing system of Iowa embraces a general property tax, corporation taxes (imposed on the franchises or on either the capital stock or the stock in the hands of shareholders), taxes on certain businesses and a collateral inheritance tax.