New-York tribune., 1869-04-10
THE EVASION or STAMP DUTIES.


Internal Revenue law the ingenuity of business men Of
nearly all classes has been taxed 10 its utmost to devise
ways and means Of eyadng IT, The wies OF the whisky
men are familiar to the public, from the late trials In
this city, as well from tho exposures MADE almost
daily by the press but the devices OF the proiesSon
shirkers have not been 80 well ventilated Inc ate
action Of Assessor Webster his raid the brokers' has
IN light many facts which otherwise might have
remained I'm total obscurity, known only to those
whose interest demanded their suppression Some years
ago IL was the prudent custom OF banks TO allow brokers
10 draw checks almost dd tbtum the understanding
being that the account to be made good Deiore
o'clock. One morning very large operator-a
broker IN whom wallst trusted implicity-ehecKed
out about onehird Of the capital Of certain bank ana
at O'Clock failed to make hs account good Since thls
little transaction has been the custom OF cautious Dah
funds TO his credit or deposits collateral This regulation
enables the brokers. aided by the banks to aceompn
OF at least $9OOO,0O0 annually ana ptoDnDy huon @
larger sum SO eleyery devised Is ,n he naIny see
that the Government is daily defrauded cannot DIng te
banks and 10 y simple and under the
existing laws II would be difficult 70 convict pank or
broker Of fraud. although viewed ina common'Sonse
Suppose that Nh. fiIem broker, desires TO borrow
AN envelope indorsed, "New-York 1859: Loan TO
j. FiXem 100000 Rate, per cent Benealh thls III IN
Inc cases the bonds other securities contained In the
envelope say that he collateral 100 United States
SSoTs pas These he fully describes under the heading
OF ooaieras pcloses them in the envelope and hands
100000 The cashier having satisfied himself OF the
and genuneness OF the securities accepts te,
and gives Mr. Fixem either his check or credit on
the bank for the amount required. He then ae-
poss the envelope containing the securities ~ LIS LIS
tered in the books. aud the transaction completed Inc
cashier has given receipt of the eur t tho hor oa %
Now suppose that instead OF depositing United states
bonds which generally rule at about the same rate every
daV
utost Fixem had deposited Ere which has been known
TO fan p esi mser o. 'Oss course 09 9So Cautious
cashier would require what he terms "safety
re the stock 70 be $1,000 in excess OF the loan But
suppose that Fisk Gould on the next day produced
nimost any day. Eric fo 20 per cent, Here y
will be seen, the Bank has loaned fIea l ~ c SaH anu
n FiKem feels inclined to do So what is 70 Rreyent MN
stead Of redeeming il 100000 with interest addedi He
has given receipt for the money the bank does not
hold his note and fears OF prosecution 60 he has
none He gains $4,000 by the transaction, besides hay.
Ing the OF toaOO0 without Interest: ,,..r-,..
IN case tho cashier desires 10 cheat Fxeu no mas quite
"a fail swing lie abstract certihsate or two, re-
turn the balance when the money paid. aud tken Us
denoeted any securities with bank and II he grounds
hls prosecution the banks books he at once SHOWS
or rather the evasion OF is tho pivot which this
loose transaction tnrns Frem gave ms nots lof .e
Revenue would require that he should place on that
note stamp for go and suit could not Oe carried 70
the envelope called the "loan-ondemand envelope Is
used. .... =, a., ,ror,o na s,e A. which
added 10 the duty would make the rate equa 70
cent annun ioT one o he1ce the ingenuity
OF those Interested In evadng the law inc law oI 100
m t % tbIs busness is concerned does not come un-
der that law but in 1864 the law changed TO Directly
eet transactions OF the nature above described After
M ords promissory note were inserted IN the act OF
1894 these words: "or any memorandum eheca, doSvp
money 10 be paid on demand or at time designated
Tho 70 this LAW and the tSe ndorsed en-
yeI0pe given by the borrower "a memorsnd1m ndnna
s e5 bs psid on demand or designated time - DO
not the Cashiers memorandum W tne oa % the
ettep and the spir Of awi Is not clear ynSi
ton OF the law ,,n.sSas 60 mako loans Oh 'O'Ai
ha oaeSton has not yet fairly brought before
avoid prosecuting these men for their frauds
II aborns man or ~ msTSnspt oao ns bapS IA
he must give his note indorsed by a. good name. ana
bearing 80 cent s,saP Se Se deposs United states
bond for 1900 market value 3 oO sayJ as security
hon Nc opsTstor Wallstreet millionaire whose opera
tions are felt throughout the country, ueiu AZ ion M
the law has no terrors Tor hi MS ioas
a. efycted without even the formaty OF signature ana
The Government treasury suffers in proportion to the mag
stSseS RTae Sr the Inc cashier and and 4 either party
desires repudate there is has bnen no
o honor on the part OF either bankers OF
in series of does not argue aat bsn be nbSepce
of yellow fever last year wond JUSTIFY ono III aSserns
that win not visit us thIs sess0h % ,aement It will be
aeei that the loans and Discounts oL n'o Inch Va mora
hSr onethrd may safely be olassed under call loans
Al this estimate which very ioW as ea hyoTos nv
nsr clever system OF efecng loans from the Dahks
succeed in defrauding the "a NOT hall
or nt the above estimate, whlchs cohio''0u" NV "
~ ~ the amount. s., 600 900 year. ., ,oroara
The example set by the banks IN ts naae @ , ~ as nv
,s ts foIowed by the private bankers, as wen as w
iore numbers Of merchants For instance ~ tno HS Gnu M ~
days transactions, tho frn OF s. s,aa caa Jones who
n p Office next door opportunely enters ara ASKS lof
that amount. As Jones good tne t and ne sends
him for one two three days at per Ts % good fortune
an GOO shares Of stock which Dy LnIo %orthIess
has watered SO mueh as 20 the entry rs made
i'm the books but neither party gives ne f,overnment
and Tue S ss required by the law OF June %
s Ibs T. moi acicar OF revenue ira9a wnat
Ihe pensy, ,Iv lqT esJ' set forth in the following extract
person or persons who shall make sign OK Issue,
nt document or paper OF any Kind or descripuoa
whatever, or shall aceep, Ur pd dr or order or prois
sorry note Tor the payment OF money, ar aShssXo
beg dH t dsnot{ng The duty chargeae thereon with In,
tent 80 evade the provisions OF ns nc" SH"' '04 0'''
sUcb ofense forfeit the sum OF $50. 80, 4, IN
suuh% % orsed envelope system is not adopted with
intent 10 eyae tho provisions OF this ae theh nre III
% Of law and common set at defiance u u Is
t Sone 10 eyade the law, why make transactions ot
ch magnitude mere matter OK honor DC Ts h,ea
on The night OF the transaction before he reacnea nis
oaee how conld his heirs recover the secufites ol
Hrohers chose 20 keep them Suppose the sioekS .vso
IN value 10 fabulous extent dnring the next day ale.
thev we're iiepOsited (such things hare happeheu nu
smith Brothers chose 10 dispose OF them ~ pIon' m
thar thon hold them as security, how can Jones re-
covert He has no receipt for his delst ana h,noun @
his bonds arc perhaps worth siseoc NO p maSt az
nroGt On them unless his neghbois are hoaS
enough 10 hand them back when Joness dept Is
The system has became general IN All oaGn'S , vii nj
husness and unless 10 "a summarlly dealt VIII, w "
eventuaiy bring upon the country shock from wniuh
viii not recover many year NO one hol %
nnyarsant with tho highways and by'ways tho ooohs
ood ,nrns of Wallst can make even an approximate on
a % ~ 20 ,ha on,onnt OF mor1y which IA yearly Vst 70