The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-07-11
FINANCIAL AND COMMERCIAL.
MoSpAY. July 10-6 p. NJ

The stock market was firm and animated al the nrst
board this morning Erie closed higher than at the
first board on Saturday Hudson River u, Reading ~,
Nicb;yan Southern Cleveland and Pittsburg n North
western 2 Rock Island ga, Fort Wayne Ia, Ohio and
Nisissppi certificates IN. Cumberland Ia Quicksilver
Government securities excepting skies OF 1861, were
h.ovant Coupon fye-twentes of the old issue ad
vsnced T. coupon en-forties u. The advance of i've
sxenties in London to ~ June 80 had considerable
pauence in stimulating this improvement, and the effect
IF any future advance will enhance the price OF
the bonds on this side rather depress the price OF
gold
At the open board o'clock the market began TO
act and the second regular board the reaction con-
anued Erie closed per cent lower than at the nrst
Board Reading ~, Michigan Southern l, Cleveland ana
Pttsburg a Northwestern ~, Rock Island Ia, Fort
Wayne IN Ohio and Mississippi certificates ~, Cumber
And "a, Quicksilver y. Coupon hvetwenties OF the
old issue were steady but the new issue declined y
At the second open board the market showed further
fractional decline New York Central sold Is 81 at 95a,
Srie 1914 Reading 1884, Hudson River ITO, Michigan
southern 65, Michigan Central 1885, Illinois Central
1888 Cleveland and Pittsburg 691S, Rock Island 1914
Northwestern 2s1, Fort Wayne 9sh, Ohio and Aisss-
sippi certificates 26sS Canton Company ass, Cumber
land "A, Quicksilver 81.
Afterwards, on the street, prices were steady.
Gold has been firm, with upward ten
dency notwiths landing the ~ European ad
vices with regard to American securities rhe
fact that the export OF the latter is an element OF
weakness in our financial system and in all probability
will ultimately prove disastrous 1t would be lar
better If tho whole of public debt held at home,
and it will eventually prove be to the interest OF the
government to offer inducements for the recall of its
bonds from Europe but VIII probably be very long
time before the government will find itself in position
TO recall them and meanwhile the danger increases with
their export
The opening quotation for gold 1891, from which
there was steady advance to l404, followed by slight
relapse the closing quotation the street being l4O
The Costa RIGA, from Aspinwal, brought
$685. 175 in gold The foreign exchange market has
been dull but steady Bankers ask 100 1924 for their
SIXTY day bills and 1925 1898 at short sisht Mer-
camille bills are in limited supply at 1854 a los1.
The money market has shown change from its con-
ditlon OF absolute ease Call loans have been made
heretofore per cent railway securities and on
governments The discount line is dull at per cent
for first class commercial paper and 10 per cent FOR
the best grade The bank statement for the week re-
fleets this condition of adairs:-Thc deposits have
increased than six and half millions,
the specie than three millions three hundred
and forty thousand and the nearly two millions.
The specie return is however, extent mythical
AMI the banks 1t to their deposors and the pubic
to correct this PERIODICAL deception.
The decision of Judge Nelson, Of the United States Cir
cult Court it appears applies mites Of all descrip
ons and exempts the transactions Of brokers Their
own account from the operation Of the tax Of one
twentieth OF per cent which the Internal Revenue
imposes upon sales of all stocks by brokers' whether
"ror themselves or others (See amendment to Sec
ton 90 March 1861 The decision Of the learned
Judge H. therefore, in anagonsm with the letter and
spirit OF law; and II is not overruled by the Su-
preme the United States 1t will be surprising
The language Of the act is as follows
SIC 90 And be It further enacted. That all brokers
and bankers doing business brokers shall be subject
pay the following duties and rates of duty upon the
sales OF merchandise produce gold and silver bullion,
foreign exchange uncurrent money, promissory notes.
stocks bonds or other sccur es, hereinafter men
toned end shall be subject to ALI the provisions where
inappcabe thereto Tor the returns assessment COL
lection the duties and liens and penalties AS are pre-
scrbcd the persons, firms, companies or corpora
tons, owning possessing, or having the management
of railroads steamboats, aud crryboats that " say:
Upon ali sales OF merchandise, produce or other GOODS
eighth of per centum; upon all sales and con
tracts for sales OF stocks and bonds
per ccntum on the par value thereof
But the Court argued like stock broker, and
maintained that brokers should be exempted from tho
tax which it erentialy admitted should be levied upon
their customers. Wherein did the Court perceive
the equity of such tax and how make such
parody of law Is involved in this unique decision
the argument OF the learned Judge tissue of absurd
lies reminding us of the warning given
by an old attorney his son, the latter being
NOTED to the bench II was ''Nevcr give your
for decision for II you do you will be sure to make
fool OF yourself" The learned Jcdgc overrdes the
amendment of March, 1855, we'll the original law,
in this fashion,
As VIC hay, seem the amendment wrcsts from the
word broker its true meaning as known in law
mcrce; aud il III s meaning IL to bo extended
beyond the immediate connection in which the word
il found, especially in u statute regulating and esab
lead W consequences never intended by The law
makers, aud involve contradictions and absurdi-
tes that IL would be unjust ~ mI.ute tn them
The word whenever used the act Of lSGi was used In
lis ordinary acceptaon aud the object OF the Change 81
meaning IN the ninth subdivision OF section seventy nine
by III amendment is not apparent. II may have had
reference the license fec or IN addition to this, II
may have been made with view To guard against an
evasion by persons doing business as brokers IL L I'M
dcrtood tina In the negotiation OF sales OF Stocks In the
several boards Of brokers' the contract OF sales IS made
in the Of the broker and aprar, nifty on his own
and for his benefit, although rs between
him and his customer IL made for the benefit OF the
latter The amendment prevents any advan-
iagc to be gained by setting up the ap
parent contract the real one intended. The
provtso to the ninety ninth would TO have
had in view tn possibility Of this practice the part OF
the broker and hence limits the sales exempt from tax
nv persons on their own account their bene
fit sales Of their property bndEde at tho tme
and which then on hand We arc quite aware OF
the difficulties and perpcxiies attending the consirnc
Of oi the Legislature obscure and onirad C.
tory the present one but after the best considerations
and for the above stated have come to the
CONCLUSION hat neNher DfokcrA, NOT uoinH DuS
ness AZ brokcr liable under the ninety ninth section
OF the of 1854 the duty claimed upon sales made
In their right and for themselves and not for others
or on commission.
The Court while ostensiby c'upicd in interpreting
the law seems to have been assuming the powers Of
Congress and the President In amending according to
its own peculiar views. Whatever may be thought Of
the advisabty of such Law that taxing sales of
cures there be but little diversity cfopnlon among
good lawyers with respect to the decision of the
United States Circuit Court in the case OF the
Unitcd States Fisk Hatch, and we advise
the Commissioner Of Internal Revenue ~ prosecute tho
matter further just recommend Congress when II
next meets abolish the tax on government securities
altogether, and TO make whatever tax is levied upon
sales applicable to every SALE whether by brokers
principals without leaving any douot whatever to the