New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-02-11
TIE EXCITEMENT AMoNGl THE BANKERS AND
RPoEFtg


The war which is Represented to be going
on between the Assessor Of the Thrtysecond Internal
Revenue District Mr. f. d. Webster and the bankers and
brokers doing business in his district appears to be all on
one side Tie Assessor maintains that he Is not being
oren any sense that he is simply doing his utmost TO
enforce laws passed by Congress for the collection OF the
revenue The law says that tax Of onetwentyfourth
OF one per cent shall assessed all capital employed
by dealers In stocks and securities known III inc IA" as
bankers. There ia no evidence OF any inclination on
the part Of the bankers aud brokers 10 make
monthly reports OF the amount OF capital nsed IN their
daily transactions and the Assessor has therefore decided
that they shall only pay their taxes In the futuIe
but also the in default OF past payments due the
Government since the date Of the passage OF inc ntfna
Revenue act, IA amended July Is, 1906 and when WAS
intended TO apply TO their special cases MT webster
claims that IN banking business involving the use or
employment Of money 10 greater or less amount the
banker and broker is liable to a tax Of ono
and that GnG makes cent no derenco how
or where when the money rs raised or comes from.
Wherever the operator uses his own money on manu- or
borrows from somebody else 1t IL capital employed as
much In AS the other IL Is wen known tnat
there is from SCOOOOO soO0OO0o worth Of sales in gold
daily reported from tho Gold Clearing House Nineteen
twenteths OF these sales transacted on fictitious cap
aL Mr., Webster contends that me enllre amount suP
posed be used by the buyer and seller Just as liable
TO taxation as any other, and he Is Determined mined
Section 30 Of the law Of July 49, 1896 provides that
sales in gold stocks, bonds &C. by parties who are not
bankers or brokers' and who do NOT pay special YAK
! such. to be made by bilI or mcnoran-
dunn aud that stamps must be affixed thereto, cqual IN
value 10 the amount or TAX, when Is % cents Oh e'e,y
$1,000 IL is believed by those well informed that the
n
such transactions aud 10 is the intention or the ohcia5
To give all parties candid and fair examination 10 ascer-
tain tue exact facts relation 10 their financial anas
which 10 puzzle all except those Initiated m inc
ny sicr,es OF Wast The Office IN Ccdarst. Is daily visited
| by numbers OF the Wall aud BrOadst operators,
| who seem DO very nervous about any
| publicity Of their transactions. Most all or
them very to fix the amount OF their capital
In numbers, but become alarmed and petulant IN
will BE- necessary inspect their books Some OF the ok
have submitted statements covering their purchases
and sales for the past Is months IN which they state mat
had no fixed capital being Intercepted by the AS
they admitted that they had borrowed money on
from $500 20 100000 In Government bonds OF course
they were surprised lind that the Assessor regarded the
money obtained Government bonds az capital The AS
as IL would probably get him into trouble. Several firms
have been summoned appear with their books Some de-
INJURED, aud others hluy refused TO comply WIN INC
order Tho Assistant Assessor, whose business IL ~ 10
the assossneuts j. thoroughly acquainted with the
mysteries and 81 tie Ii~ees OF Waist Rnd ~
generally posted what might lac termed the tricks OF
trade hfcr repeated interviews with the Assessor
tie parties summoned have sgnied their intention Of
making voluntary statement They Will be expected
answer the following questions. which Information
must appear on their books: ,,
Fsi-Nhat ~ the amount " fixed capital held by you
in your busiucssi
Seeond-1he average amount Of deposits in each
month";
TIir-Thc average amount used In the purchases OF
gold, stock bonds, bullion, and other securttiesf
Very few Will probably court investigation In their
Of doing business. 1t j. reported that many nave
decided make their returns and after the assessment
l. made contest It's collection. The order from the As
SCISSORS Office il for the gentlemen 10 call at headquarters
and MAKE their aifdays.