Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1857-07-31
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WASHINGTON, ". c., July 5tt. 1sk1
DEAR SIR I've have been asked by a nnmtn
Merchants in this place, to give our opinion OF
construction of the Gath Sect of the Revised On The
"a, of the acts of 1856 We feel dificultu -; en-.
ing so because literal Interpretation wonld ~ 10
injurious, that cannot believe the Legislature 80
intended such result. We have suggested tba.e
fore that you should be consulted is that - &c
effect be INJURIOUS, it should at least be pn;fosI
throughout the State, and the pressure borne eonOm
by all. Please inform US officially of The views ~
the Government on the following cases "a
L. If sells Turpt. or Cotton of his own product;o
in this State to B. and sells to C, who sbins aUa
sells it abroad-are both and bound to na, t th
tax of of per cent on The Turpt or Cotton And
is this so, regardless of how many times it NAV ba
sold before expectation
2. If A, jobber, imports goods from New York ana
sells TO B, who reails 10 the consumer, are both
and bound 10 pay the tax OF of per cent?
You will perceive that these are substantial
y the came: the first relating to goods produced in
the State, and exported for consumption and ho
second, to those imported for consumption.
If the first is answered afrmativcly it will 90 verv
far TO break up the internal trade in our own stanIa
If the secol is answered in like manner i will
break up the jobbing business, large one in onr
Eastern, and probably The inferior Towns, and com.
pei every retailer to buy his goods abroad Further
if We had any foreign import trade each Legislature
would aimed directly 10 break it up, as ports Of
all other States would have preference over orr
own to The amount of the tax.
8. If sells goods imported from New York ard
takes Turpt. or Cotton in payment is he, as a pur.
chaser of his New York goods and of the Turpt,
bound 10 pay a tax on The taro sums!
If this is answered afirmatyeIy it will break nm
the barter business and produce infinite inconven.
fence.
4. Do Sections "a, 26 and 81 impose anu tax on
the dealings of Merchants prior to LIST July, 1857?
Are not the taxes then payable by them anticpatorv
of their business from 1st July 1857 to lst july H.
o IN their line IN kbo
terval?
5. Does Sect. q apply only 20 those who have not
been dealing in merchandise before End July 1857
also to those, who so dealing before list Juy
1857 and " open store" after 1st July 1857 bv con-
tinung their dealing
If Sec. "A imposes tax, not on propertH but on
conduct Ito wit purchases) prior to ats passage it
would seem 10 be an post faco law, and more in
the nature of confscation than revenue act; and
in its constitutionality very doubtful Our clients
desire to discharge all their duties as good citizens
however onerous they satisfied that the defects
of the law do not alise from any intention in the
Legislature to oppress but from want of consdera.
ton merely; the greatest evil of an obscure taxing
law-and the remark applies equally to one whose
security makes its construction doubtful-is that
never operates equally the most conscientious bear
the burden. these less evade it. They desire to
know, therefore, what is the construction which the
government officers intend to enforce so that thew
may act accordingly. The Importance of the sub.
Ject warrants us in requesting an early reply.
Respectfully Yours,
W.. RODMAN,
r, S. DONNELL.
To D. W. COURTS, Esq, Pub. Treas.
TREASURY DEPARTMENT OF N. c.,
July 18th, 1857. (
GENTLEMEN Il am in receipt of your favor of the
9th inst, and will proceed to your questions
in the order stated not repeating them, as presume
you retained copy of your letter.
1. By Section "A Revenue act, every merchant is
to pay of per cent upon his capital employed,
saving the amount of his purchase of ready made
clothing, upon which he is to pay per cent How
is the amount of this capital TO be ascertainel?
think the answer is furnished by the Act.
"The Capital aforesaid shall be the aggregate sum
of the purchases OF goods, wares and merchandise
made within the year preceding the first day of july
and herein shall be included the amount of the pur.
chase of goods and merchandise and srirituous
liquors, or other things not herein partcuarly enumer-
ated Dhether this another State The tax is on the
Capital employed, not the articles purchased, and
this capital by the broad term of the act is the ag
gregate expenditure for all articles purchased. 1t is
dthcut 10 stop short OF this and say, that one sale
or many sales of article, produced here or abroad
would take it ou of the act, and cannot see that
there Is any exception to any purchaser, matter
how many transfers made before the article leaves
| the State.
2 1t seems to me that the jobber is merchant as
we'll as the retailer, and that the law makes no dis
tnction whatever Each pays upon the Capital en-
ployed, without reference to the particular goods
sold. There may be force in what you say as to
the policy of the law, but that consider aside from the
construction, when it is PLAIN.
3. Upon tair exchange of goods for instance for
produce (the case put by you,) do not think the
Merchant bound to pay tax the price of each as
a capital, this would be virtually paying double
Tax without doubling the capital. But think it
must be bona file barter or exchange of goods for
goods.
A. Section "a and 26 impose tax on the capital
used by Merchants for II months prior to 1st July,
1857. Section "a says " within the year preceding
the lst july" and Sec. 26 says g any Merchant
gagged in business the LIST July, shall apply to the
Sheriff, and on paying the tax on his capital estma-
ted as aforesaid, may continue his business, &c.
The General Assembly increased the tax on Divi.
dens and other property for IL months from to 1st
April last and cannot see that they have not the
power to tax the capital of Merchants in the same
manner
5. think Sec. q, applies only to II ose who have
not been in business prior 10 1st of July, 1857.
Very truly yours,
d w. COURTS, Pub. Treas.
Messrs w. B. Rodmau & K. s. Donnell,
| Washington, N. G.