The Northern Daily Times.
Liverpool, Merseyside, England, 1853-11-26 00:00:00

ONE PENNY STAMPS.

PENNY STAMPS. —Numerous applications have been may

LETTERS BY THE Posr.—Letters by the post, acknowledg-
ing the safe arrival of any bills of exchange, bank notes or
other promissory notes, or other securities for money, are
exempt from receipt duty ; but if the receipt of money be ac-
knowledged, a stamp is required.
The exemption is confined to the mere acknowledgment
of the safe arrival of such bills of exchange, bank notes, or
other promissory notes or securities. It is not intended' to
give to the letter the effect of a discharge for money, butsimply
to authorise the receiver of the securities to convey the sender
the information that they have reached the hands of the
person intended. If, therefore, the letter of acknowledge-
ment contain any intimation relating' to the appropriation of
the money represented by the securities, by signifying that
credit has been ?given for the amount, or that it has been
placed to account, it is no longer covered by the exemption,
but becomes a receipt chargeable with stamp duty. Instead,
however, of enclosing a separate formal receipt in any such
case, it ill only be requisite to affix an adhesive stamp to
the letter of acknowledgment ; at tote same time cancelling
it by writing the initials or a portion of the signature to the
letter upon it.
The documents, the safe arrival of which may thus be ac-
knowledged by post without a receipt stamp, are bank post
bills, Bank of England and country bank notes, letters of cre-
dit, postoffice orders, cheques, (stamped or unstamped), bills,
drafts, and orders for payment of money of every descrip-
tion, whether due or not.
Where advice is given by letter to a person that money
has been paid to his credit, a letter in return, merely acknow-
ledging thereceipt of the letter containing such advice, is not
chargeable as a receipt ; but any intimation that the money
has been received is liable.
REcuTPT FOR TAXES. —By the recent act, receipts for land
tax, assessed taxes, and property and income tax, are
exempted from stamp duty ; but there is no exemption in any
of the stamp acts of receipts for any other rates or taxes.
Special exemptions from receipt duty contained in acts of
parliament are not affected by the recent act.
Dnerrs on ORDERS. —A bill of exchange, draft or order
for the payment to the bearer, or to order on demand, of
any sum of money, of whatever amount, whether drawn
upon a banker (excepting as herein-aftermentioned), or upon
any other person is chargeable with the stamp duty of one
penny, and may be written on stamped paper, or an adhesive
stamp may be used.
Ali other bills of exchange, drafts, or orders at or after
Night or after date, for the payment of money amounting
tO 40s, or upwards, are chargeable with stamp duty as here-
tofore,

It is right, however, to state that all negotiable or trans-
ferable drafts for sums under 20s, are illegal ; when there-
fore a payment is intended to be made by draft of a sum
ender 205., the draft should •not be made payable either
to bearer or to order, but only to the party in whose favour
it is drawn. In any such case, if it be payable on demand it
will require the penny stamp ; if otherwise than on demand
it will not require a stamp.
A draft or order payable
.generally, without reference to
any stated period after the issuing of it, is payable on de-
mand ; and any draft or order, though not made payable to
bearer or to order, is chargeable with the same amount of
duty as if so payable, if it be delivered to the person in
whose favour it is drawn, or to any person on his behalf.
PROMI9SORY Nun:e.—No alteration has been made in the
duties on promissory notes, except that bankers' deposit
notes or accountable receipts are not now chargeable with
duty, notwithstanding the import that interest is to be paid.
The exemption in favour of these notes is not affected by
reason of their containing any stipulation that the money is
not to be withdrawn for a specified period or without notice.
LETTERS OP CREDIT.—AII documents or writings usually
termed letters of credit are declared by law to be bills, drafts,
or orders for the payment of money, and chargeable with
alum y
A letter of credit payable on demand must be on a penny
stamp; but if the credit be not given until a specified day,
or until advised, it is a bill of exchange payable after date,
and must be stamped accordingly,
CHEQUES ON BANKERS. —A cheque on a banker payable
to bearer on demand is not liable to stamp duty, provided
that it be issued within fifteen miles of the place where the
banker carries on his business':

That the place of issuing be truly specified in it :
That it be dated on or before the day on which it is issued,
and not after :
And that it do not direct the payment to be made by a bill
or note.
The most frequent irregularity in regard to cheques is the
issuing of them at at a distance of more than fifteen miles
from the banker on whom drawn. A cheque so issued is, if
not stamped, illegal ; and the person issuing it, and the
banker knowingly paying it, incur the penalty of 1001.
each ; and the person knowingly receiving it in payment or
as a security incurs a penalty of 20/,
The place at which a cheque is to be considered as
issued is that where the drawer parts with the possession of
it ; and if it be transmitted by him through the post, the
place of issuing is that where it is posted.
An unstamped cheque drawn and issued as above may be
circulated at any distance from the place of issue without
affecting its validity. Thus a cheque drawn in London
upon a London banker may be sent by post from London to
Glasgow, or elsewhere, and negotiated there for any
period.
One of the objects in reducing the stamp duty on certain
drafts to one penny, and in providing adhesive stamps, was
to enable persons residing at a distance from their
bankers to conform to the law at little expense and
with perfect convenience. Persons residing beyond the
distance of fifteen miles from their banker, whether such
residence be occasional or permanent, ought to be at all times
provided with stamps, as any infraction of the law subjects
them to a penalty.
A draft irregularly issued cannot be afterward made valid
by affixino a stamp to it.
The object and effect of crossing a cheque with the name
of a banker seem to be much misunderstood, inquiries being
frequently made of the board respecting the practice, in re-
:o4 t

f/ w~ ;` ti

A POPULAR EXPLANATION OF THE STATUTE REQUIRING A
STAMP DUTY OF ONE PENNY ON RECEIPTS AND ORDERS
FOR MONEY, AND OF SOME PROVISIONS OF FORMER ACTS
REARING THEREUPON.

to the commissioners of inland revenue on various questions
relating to the stamp duties on receipts and orders for money
granted by an act of the last session.
The commissioners consider it advisable to print a short
statement, referring to the principal points on which their
opinion has been sought, hoping thereby to afford genbral
and correct information, and to promote the convenience of
the public.
RECEIPTS.—The stamp duty payable upon a receipt
,given
for any sum of money amounting to 40s. or upwards is id.,
to be paid by the person giving the receipt. The receipt
may either be written upon stamped paper, or an adhesive
stamp may be affixed to the paper upon which it is written;
but an the latter case the person giving the receipt must
himself cancel the stamp by writing his initials, or some por-
tion of his signature, over it, before he delivers it, under a
penalty of £lO. A receipt cannot be made valid afterwards
by affixing a stamp.
A person giving a receipt for money amounting to 40s.
or upwards without a stamp, subjects himself to a penalty
of £lO ; and if, when 40s. or upwards is paid, a less sum
than 40s. be specified in the receipt with the view to avoid
the duty, or any other contrivance or device be used for the
like purpose, a penalty of £5O will be incurred.
A. party refusing to give a receipt incurs a penalty of £lO.
Any note, memorandum, or writing whatsoever given
upon the payment of money, signifying that an account
has been discharged, or that money has been paid, or credit
given, is a receipt liable to stamp duty. If, therefore, the
person receiving money write, or by means of a stamp nu
press upon any bill of parcels or invoice the word " paid,"
"settled," " balanced,' " discharged," or any words of a
like import, intended to signify the payment of money, he
must at the same time, if the paper be not already stamped,
affix thereto an adhesive receipt stamp, and cancel the same
by writing his initials or some portion of his signature
thereon. If he omit so to do, he will incur a penalty of
£lO, and the memorandum will be of no avail to the person
to whom it isven.
nucrfes made by persons receiving money in pass books
kept by the persons paying the money, are receipts ; and for
every such entry made without affixing a stamp, and writing
over the stamp, as herein-before stated, where the payment
amounts to 40s. or upwards, a penalty of £lO is incurred.
On every occasion when money amounting to 40s. or up-
wards is paid, whether it be on a sale by auction or other
ready money dealing, or the payment of wages, or on a
transaction of any other kind or description, if any receipt
be given it must be on a stamp ; and so, likewise, must a
receipt for money paid on account.
Receipts, discharges, or acknowledgments given upon pay-
ments made by or with bills, drafts, notes, or other securities
are declared by law to be receipts chargeable with stamp
duty. Any receipt, therefore, given on such an occasion, or
any memorandum signifying that a bill, draft, note, or other
security has been given or delivered in satisfaction or on
account of any demand, must be stamped.
RECEIPTS UPON BILLS OR NOTES.—Receipts written upon
promissory notes, bills of exchange, drafts or orders for the
payment of money, duly stamped, or upon bills of exchange
drawn out of but payable in the United Kingdom, are
exempt from duty.
The receipts here alluded to are receipts for the money
specified in such documents, given on the payment thereof.
A special receipt, therefore, written on a bill or note when
paid, intended to operate as a discharge of any particular de-
mand, besides that arising on the bill or note itself, requires
a receipt stamp.
Except in the case of bills drawn abroad, an unstamped
receipt indorsed is valid only where the bill or note is duly
stamped. A receipt, therefore, on an unstamped cheque, for
the contents, is not valid without a receipt stamp. To make
the cheque available as a voucher, it should be drawn payable
to order, instead of to bearer, and a one penny draft stamp
affixed thereto.
Where money due upon a bill or note is payable by
instalments, the payments may be written off on the back
of the bill or note by the holder; but if a receipt be given
to :the person making any such payment, it must be
stamped.