New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-04-19
WEBSTER AND TALL-S7REET.

ing Mr.. Assessor Webster's late operations in
| Wall-st. AS the subject derives fresh interest
from the recent decision of the Commissioner,
sustaining Mr. Webster's course, and as this
communication may be taken as a semi-oillcial
statement on behalf of the brokers, we have
numbered sundry points in it, to which we
herewith reply in their Orderi
/. Exactly what established rulings are here
referred to 10y our correspondent, it is imposs-
bic to say. 1t is certain, however, that Mr..
Assessor Webster overturned no established
ruling of the Internal Revenue Office on the
subject of the tax on bankers for 10 long ago
as January 1867, in reply to on inquiry by Nlr.
Webster's predecessor, the Commissioner OF In
tcrnal Revenue wrote: | reply that II
banker borrows money and uses it in his
banking business, it should be treated as a
| part of his capital, aud be subject to the
| monthly tax of one-twenty-f fourth of one per
" centum." Mr.. Webster has simply endeav-
ored, as was his sworn duty as an officer to
enforce this ruling.
9. Whether THE TRIBUYE's articles on this
subject are Calculated to prejudice rather than
enlighten the public" time will perhaps de-
teruine. We think THE TRIBUNE, rs rule,
will be found, "not TO put too fine point on it"
to comprehend something of the subjects 1t
undertakes to discuss. .
3. We believe such q decision has been rem
dered but fail to see its application to the case
in hand. bank is, by the terms of the law,
taxed upon its capital and its capital is n fixed
and known amount or sum represented by
shares; il is authorized to issue circulating
notes and to receive deposits. each OF which
contributes to the support OF the Govern
ment; while the private banker Is taxed upon
the capital employed in the business OF bank
ing. The act of June 80, 1884, provided
for "a duty of one-twenty- fourth OF
lone per centum each month upon
tho average amount of capital of any
| " bank, association, company, or corporation
" or person engaged in the business OF banking
! beyond the amount invested in United States
! bonds Under this act it might perhaps
have been reasonably held that the taxable
capital of banker should be the actual capt.
tai invested III business at the commencement
of the taxable year. Congress. no doubt seeing
this defect in the law, on the 18th of July,
1885, amended the act, employing the following
language: a tax of one-twenty- fourth Of one
"pcr cent each month upon the capital Of any
"bink, association. company, or corporation,
| w 'iiO t"P'tWs t"p'VU'W ny Guy PefSV't
" in the business of banking" &c. Is it diff
ficult to see the distinction here made between
the taxable capital of an Incorporated bank and
that of the private banker1 In the case of
the private banker. Congress taxes tho capital
actually employed in the business of banking,
and because it is so employed, and not simply
because it is capital. There are to-day millions
OF dollars of foreign capital subject to the
| Al Ii. II, L..
nominally $4,000 or $4,000 capital employed
in business. When the demand for money is
pressing, they draw upon this foreign capital and
use it in the business Of banking. Why should
not money SO employed be subject to the
tri1ing tax of onehalf per cent per annum
4. In the case supposed is it not clear that
the young man has employed 100000
in the transaction referred to I Aud if he has
employed it, the law says he shall be taxed
therefor. 1t is idle to pretend that this triflng
tax is onerous; for there is not a spOoney
in the whole country who, being once seized
| with the stock gambling mania, and who makes
| up his mind to take u little line in Erie Or
Central, would hesitate an instant to pay his
ban ker, in addition 10 commissions and interest,
the insignificant tax of one-haf of one per
cent per annum for the few days it will require
to realize q handsome fortune.
8. 1t is Enthusiastically the duty of the Assessor
to make assessments for back taxes in cases
where inadequate returns or no returns have
been rendered by the taxpayer.
g. 1t is a relief to know that the brokers Of
Wall-st. will acQuesce in n decision of the
Supreme Court; but we are puzzled to know
how 1t Is that our correspondent cannot, us
well as the press and the public. afford to
"wait, without prejudice on the one hand, or
AN immature Judgment on the other" the de-
cision OF tho Courts. .r
T. Ii is the experience of our few acquaintance
who have taken little ventures in Wal-st., that
it is the brokers' or rather bankers deluded
customer who pays these taxes. When our we'll
to-do farmers discontinue their useful and pro-
ductivo employment, and go into business
rs bankers, and use their capital In keeping up
the premium on gold, and in depressing the
value Of our Government securities, they will
no doubt be taxed as bankers. Until they do
this the point which our correspondent cndcav-
OTIS to make on the relative taxation of bankers
| and farmer Is not apparent ito the naked eye.
8. The law imposes stamp-tax of five cents
| on each SlOO OIL "any promsSory note Except
"bank-notes or bills), or any memorandum,
"check, receipt, or other written or printed
"evidence OF IN amount Of money to be paid
"on demand or at q time designated" Now
| it is clear from the above that Congress con-