The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-05-14


rnursday.... ............... Iz9ts e IZSH
Saturday ..........................1 291 1-SX
Foreign exchange also firm In view of the curtail
ment OF the cotton supply at the ports the consdera
bio Indebtedness of importers to Europe and the
necessity Of putting their in order preparatory
to the execution abroad Of orders for the fall trade
Bankers bills England at sixty days closed at 1907
Y, short sight 1lo's u, commercial 1oS 100, bills
Paris at sixty days ST. 18c. 5r &c., short sight
81 10c ST. 11c
The examiner appointed by the Comptroller Of the
Currency to inquire into the condition Of the Merchants
National Bank at Washington has made his report and
confirms the worst suspicious which have been enter
tanned in relation to this dsgraccfu failure Exclusive
Of the furniture and fixtures of the establishment which
valued at s5O17 its real assets consisting almost
exclusively Of stamps turn out to be $7S9. OF
Tor less TO avoid misunderstanding than eight hundred
dollars). There is in addition, little more than
q thousand dollars in the form OF special de- !
posts, and a quantity of bills receivable pro-
tested, past due and undue, altogether amounting
to Sal 962 but these may be set down worthless with
perhaps trining exception The nominal assets in tho
general balance sheet prepared by the examiner include
the enormous sum of STATIC due by Baync Co. Of
Baltimore the firm in question being declared insovents
without asses 1t from this that Bayne Co.'s
indebtedness tho bank aud the United States deposits
in it nearly balanced each other The latter aggregated at
tho time Of the failure $762 that there is only
odd Atty thousand dollars between them. The govern
nent deposits too between the LIST of January and the
Sd Of May increased In about proportion the
private deposits decreased The latter amounted accord
ing the reports Of the bank 5000 tho LIST Of
January, and TO only $4,000 the Sd Of May; while
tho former increased during the time from $94 225
TO $7o2al about $500 Of which deposited with
the bank between the 21st Of April and tho Sd Of May
the day Of the failure
This rapid accumulation Of government money was
owing, the examiner says to effort 10 save Bsyno
Co. from failure on tho part Of Paymaster Isuidng
And others Bayne Co. stood In immediate need OF
from $3.50 900 to $3.50 900 10 tbem from suspen-
sou and the Goth Of April sev'd interviews and con-
situations held between the parties to this con-
spiracy to dcfraud tho government Psymaster Pauld
ing was present at oss or more OF these meetings.
and on the folic~ing day no oblginRly deposited
two hundred thousand dollars with the doomed
bank. c this amount Bayne Co, at
received $50 O00 $50 600 more to make good Ger
tain checks which the bank had drawn upon them on
thc previous day. will be strange II Paymaster Paud-
ing Is not held crminally responsible for this gross mis-
application OF the public money entrusted to him, his de-
poss with the bank at the time of its failure having
been more than half million Of dollars $500 SSH II
Is TO be hoped that the Congressional committee appoint
ed to inquire into this scandalous affair will perform Its
duty without fear or favor
It may be well to remind taxpayers The schedules
81 come tax reunable the of Internal
Revenue the LIST Of May under the provisions Of the
amended law Of March g. 1865 It Is the duty,
should be Of the send blank forms the
taxpayers In their respective districts the law requiring
the latter to nd out the former and obtain tho blanks
by their own exertons, In default of which the
assessors may add penalty Of twenty-five per
cent to the amount OF the income returned.
Tho due Is for the year 1865 at the rate OF i've per
cent upon all six hundred dollars and under
Ave thousand annum, and at the rate OF ten per cent
tho excess this latter SIX hundred dollars
Is exempted upon all incomes and the Of all
tiona state and municipal taxes paid curing the year.
together with the amount paid for rent the rental
value Of house occupied by the taxpayer In his
right or that OF his wife, BIO deducted from the gross
income of all persons liable to tho tax.
II noticeable that and the price Of real estate
are lower than they three months ago,
when landlords piled Pclion ossa by compelling their
tenants pay fresh advance their prev ously
cxactions. Tie OF the sharp rise in rents
desire the part Of property owners to sell and not
let their premises and the they advanced their
the valuable they expected their property
become BIT their expectations have been al great
disappointed Those who have succeeded with their
tenants obtaining advance they asked likely
to be cqualy successful next year unless in few par
tcular localities while many who wanted TO sell have
missed th'ir market by ovcrstepping the mark Tho
greed Of gain may easily be carried to an Improbable
extent aud %, away It's posscssors' fortunes
Tho opinion Of Mr.. Ashton, the Acting United s,aios
Attorney General respecting the tax on brokers' sales
addressed to the Commissioner Of Internal Revenue,
contains the following explanation Of the law, showing
that bankers doing business as brokers stand pre-
cscy the footing brokers aud arc equally liable
with them 10 the tax on sales
II seems to mo a ceroary from propositions affirmed
by the supreme Court In their adJudcatons that
son doing general business o. broker who al the
time prosccutes The business Of selling stocks other
securities FOR Others NJ well as for himself Is llatle TO
pay tax upon all his sales So long his sales
limited to bis own securities his not
cJme those ~ broker but when IN addition 10 such
sales he negotacs sales Of securities for others he
gteos In the business OF broker and becomes banker
doing business n broker A broker and banker
doing business broker stand precisely The samc
footing IN the statute boh are mentioned In the ninety
ninth section H subject TO The payment Of the
duties upon the sales ii the kinds of
property there enumerated. Tho supreme Court
has settled, @ we have seem that brokers
liable TO pay duties all their ssles those Of their
own property we'll those Of tho p y ~ others
Bankers there ore doing business q. t.,L RS vooid
seem TO DO subjected % the sane labtv. They are
ohugcabc, under the prov sons ~ hc gsh section OF
the statute, With the payment o. duiicf upon al thor
sales The exemption q lan~ efs' sales vi their own
securities from duty u mainialnabIc only hink when
the bankers DO not prosecute cary on business
brokers, In the case a. thosc who Ia 1her words do
not eng In tho business OF negotiating purchases
no exemption IAN be clair ell by bankers who DO engage
IN such business In favor sales which they may nego
tate Of their rifles The statute requires them,
10 my opinion, 10 make tie sane OF sales
mado by brokers, and subjects them ~ the liability Of
paying like brokeIsl duties upvp all sales Of stock and
securities by them negotiated whether for the benefit Of
themselves or OF Others
The following ssole shows tho quotations Of the ead.