Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1864-01-15
- -. e =. For the standard.
RALE1aH, Jan. 8, 1854.

s HIS Ezcsllsacy e. b FsIe6:
go S1R:4In connection with the matter inquired OF
by your letter Of the 23d Dec last, have deemed
It proper at the instance Of the chief officers Of
Z certain State corporations, to give my opinion
upon the taxintended to be levied on them by the
Confederate Congress shall select the Banking.
and Railroad corporations 2.'- = - vi, ). 49,,
3; careful perusai of the Revenue act shows that
some of the subjects taxed once only some twice
aud some three times. Thus farmers are taxed once
only and that tax is tenth Of their products The
land labor and producing animals are not taxed
I'd their profits are taxed ds-ineome Dealers are
taxed lst for thelicense I'd upon the gross amount
Of sales, and Sd upon their income The subjects
Of taxation are carefully separated There are
certain subjects called registered" Subjects be-
cause the person cannot follow the business without
the payment of tax for license which is registered
Railroad and Banking corporations are not included
among them, see, secs 2, 8, 4 5 and paragraph to
. sec. g.. By SEQ, 8 1t is provided:
.sThat the Secretary of the Treasury shall cause
to be assessed and ascertained on the first Of DAN
uary next as soon thereafter as practicable, the
income and profits derived by each person, joint
stock company aud corporation from every occupa-
ton, employment or business, whether registered
{ or not in, which they may have been engaged and
from avery investment of labor, SKILL property or
moner, i'd the income and profits derived from any
source whatever except salaries during tue caien-
d4r year preceding the first day of January next
and the saidincome and profits shall beaseertained
assessed and taxed. in the manner hersihafter pre-
: scribed" -. ,97 tj-$ t,f%
SBY paragraph 6, under section g. wherein it is
provided how certain incomes shall be ascertained
and what poFt0a paid as 4x, u y LdsclAfed sil
joint stock companies and corporations shaiffesrye
etenth Of the annual earnings set apart for dly
dend and reserved fund.- to be paid to- the collector
of the Confederate tax and the dividend then paid
TO the Stockholders shall not be estimated as part
of his income" &c. +* = sProvided the in.
comes and profits upon which the abovetax is to be
imposed shAllnot be deemed to Include the products
of land which are taxed M kind &c. = = And
provided futthefg tHstain case the annual earnings
Of said joint stock companies and corp6rations set
apart as aforesaid, shaft give profit Of more than
10 dsleSs than 30 per ceatum on their capital
stock paid in one eighth Of SAID sum set apart,
shall be paid asa tax to the collector as aforesaid
and in case said sum set apart shall giTea profit
Of more than 30 their capital stock paid
in, onesixth thereof shall be reserved and paid as
Aforesaid sd, -ths esF 6s''.'a.1 =
- The above is the only place in the law where the
tax on such corporations is directly spoken Of
Now, unless they are included in section l. of the
act there is no other part Of it which taxes them.
As to section I, itlsys 1St atax onprovisons not
needed for families during the residue of the year
and I'd ION all moneys, bank notes or other cur
reney o0hando or on deposit the lst of July next
and on the value Of all credits on which the interest
has not been paid, held Drowned by any person. 90:
partnership eorPoration.On the first of July next
and not employed an a business the Income dsriDsd
JfoR 'ohich Is tGzst under tSs PrOVisiO1a.4f ts'S
:, act" 70; s--,7s-r as. .-ei971 -. Sss 81 oSps !
The clear meaning Of. the enactment is, that
moneys whatever constituted Of, having the char
acter of currency being on the LIST of July, 1868,
either In actual possession of the owner or placed
with another for safe keeping and also all credits
on which the interest had not boon paid which said
currency and credits, held owned by any person,
CO partnership or corporation, If not employed in
business, the income derived from which is taxed
under the provisions of the act should be taxed one
per cent gr..g., = Z
Thatthe Law; intended in this section to pat ndl-
Viduals and corporations the same footing inre-
gard to the tax On currency and credits is obvious;
and that it did not intend to tax either if EMPLOYED
In business the inco of Whrh is taxed is equal
ly clear. THUS a credit (bond or note,) on which
the interest had not been paid, was taxed on its
entire value of principal and interest one per cent
and is not the subject of any other tax under the act
If the interest had been paid the principal is not
taxed at all but under section s, the interest is
taxed as income at a rate according to the en-
tire income, varying from to Is per can't
Lending was the business in which the in
terest was derived. The capital on which Bank
does its business and from which it derives its in
come, is composed of its money, currency and
credits much of it on one day is made up of cash,
anu lhO hOAb VI CiSulIS. LINUS tu0J SLnplOJ-
ed by the banks this is the course of its business
LIS to aforementioned that the tax intended to be
imposed, is a tax on the iowRer of the currency
whether it be in his custody that of another per-
son. The depository is not taxed because the de-
poster is, forit never designed to charge man
with double tax, because he might seek places,
safety for his money. -ss q. % ~,
Now, If it be admitted that credit of 800 ex-
listing the LIST of July, and employed in a bust
ness yielding taxed income is not taxed, land this
is clear) why should be 800 IN cash, received
on the LIST of July in the course oS the same bust
ness the income of which is taxed? As for instance
on that day A pays the money due on his note in
bank, which immediately borrows.- This credit
was employ IN taxable income business, and in
the like manner was the cash, So Of msnufacta-
incorporation which sold cloth of the value of
$1,000 on first of June, got the money on 1st of
July and purchased raw material with it on the
I'd Likewise of q Railroad Company constantly
receiving freights, &C., and constantly discussing
in repairs, paying salaries, &c. q. -
In conclusion, quote paragraph from the syn
opsis of the decisions made by the Secretary of the
Treasury, under the tax laws headed 4" Credits"
- GRBDTTs.-Sec 1st taking credits, is to be con-
strued in connection with See 8, taxing incomes
The scheme of the law is to lay an alternative tax
Of one per cent on capital or g. 10 or 10 per cent
on incomes; 1t is not designed to tax capital and
again the Interest," and this is the idea conveyed by
the Law when speaking of credits "upon which the
interest has not been paid All interest received
during the year 1858 is subject to income tax, and
no capital tax is therefore, designed to be laid upon
the credits producing that interest The rule thus
furnished it follows that the one per cent tax is not
laid on credits upon which the interest has been
paid and due to LIST July but when the interest has
not been paid, the tax falls upon the capital.n Be-
Value of credits" is construed to mean the prin-
cpai and interest if not paid of all solvent credits
and the estimated value of credits that the holder
will swear not worth the principal and interest
Credits employed in business the income of which
is tayed under the acp are exempt from the capital
tax of per cent To be entitled to exemption, the
credits must form part of and be exclusively used in
carrying on the business, and the money derived