The New York herald., 1869-02-05
THE WALL STREET SCARE.

The Revenue Omcials and the Brokers' Com
troversy-A Delegation of Brokers Go TO
Washington Investigations to BE
Public.
Wall street has not as yet quite recovered from
the scare into which 1t wss thrown last week by
Assessor Webster's announcement that he intended
to tax all the capital In active by the brokers;
and, judging from present Indications it seems very
doubtful whether they VIII be able to get 1t for
some time to come. For days past appeals from oil
quarters in the busy money mart have been
daily pouring in upon the assessor. in which all
sorts OF specious arguments to prove his action in
the matter unwarranted, and, in fact, altogether le
gal, are paraded with all the usual stereotyped
language Of "styled briefs;'' but the assessor
remains firm in the bold position he has
deemed 1t his duty to take, and positively
refuses to recede one step to oblige even the mil
lionnares who popularity supposed TO be able to
move heaven and earth In any particular direction
they DESIRE II Is well known that the tax, the i'm
posing OF which has created such q fearful commo
ton, Is one-twentyfourh OF one per cent on all capi
tai employed by dealers I'm stocks and securities.
1t is equally well known, at least to those most
concerned, that 1t is the intention OF the
rssessor that the dealers shall not only
pay the taxes regularly accruing from time to time
but also the arrearages in default of past payments
due the government from the date OF the passage OF
the Internal Revenue act, as amended July 1S 1866
and which made to apply TO their special cases.
The brokers meanwhile doing all in their power
to prevent the assessor from efTectng his purpose
and falling In that to obtain by fair means or foul,
a repeal OF the law If it should happen to be inter-
preted by Commissioner Rollins in way that will
make them down with the dust !" noIentes polentes.
IL Is rumored on the street that in addition to able
counse l. VINO have been employed TO plead their
cau rev arpW
TO raise certain amount which Is TO be FUSED" to gain
the point either in Congress or out OF Congress.
They claim that the assessor Is all wrong In his
action and that to prove this but very little argu-
ment Is required. For instance, they claim that 1t
viii be utterly impossible for them TO conduct many
OF the branches OF their particular business with
the slightest prolific II the tax Is enforced
on pe capa ON soc borrowed FOR certain time AZ
seven per cent upon which sum the original holder
has already paid tax they would be placed IN the con-
TWENTY-FIVE cents and sells It for fifteen cents,
or, otherwise speaking, for less than he him
self had TO pay for 1t. They are also very
sore over the taxing OF their capital In banks which
is in constant use the ground that many brokers
have no capital q Their own tS nn, plenty Of credit
their name actually belongs 10 their customers. For
example. they give the case OF man who goes to q
for $4,000 drawn against a certain bank, In which
the latter has credit but IN which he has no funds
$40 900 worth OF particular stock is bought for the
customer. In order 10 make things all right before
banking hours close the $1,000 margin, with the
stock i placed TO the brokers' credit in the bank.
this THIS $4,000 he taxes the broker for capt
tai which is not ms own, and which
he does not use for his own beneat. u.
his term OF ofce TO become very familiar with all
the little tricks ard rickeriesnot TO use harsher
terms--of the brosers does NOT appear 70 De very
willing 10 see things In the light which the dealers
would have him set them, and explains away many
OF their theories about customers funds IN man
ner which they do hot at all relish now. and which
they win certainly relish far less when the tax is
vigorously imposed. Mr.. webster believes that II
certain amount OF gold-say 100000 worth-is pur-
chased nj thirty, Tor three days, by one man. for
which he gives his cheek, and at the expiration OF
the three days gold goes up to orty when the seller
gives the buyer his cneck ior $4,000, the
9th er capita actively used In any business. Again,
N on speculation awhiskey dealer buys OF another
saw 5000 barrels Il whiskey and, for convenience
time the buyer sek the 5000 barrels OF an increased
pront 10 another dealer the capital used by the
original buyer Is taxed as wen as lhat used by the
second buyer. sud- being the case. he thinks that
stocks stand exactb in the same condition, as far
their liability to tai Is concerned, as whskey.
Thus far but tvo firms have been notified that
their returns OF capital actively used would be well
come al the assesss ONCE. The first firm put Its
foot down in vert determined manner, and refused
20 comply with the request OF rather peremptory
the firm, or one OF its responsible members,
appear beforeshim vhen, under OATH deposition
what s capital s y ssat w' o 0e wam yahn dne
OIIrien who at thesart were very loath TO accede
70 the views OF the sessor, and they also were to
have been examines s YESTERDAY, & After consulting nl
before the hour nxed for the examination
mad arrived informed the assessor that they
wqH iSsr oase Is Ss,osed o. but whether she VOL
untary return that In all probability VIII hereafter
be made by many brokers who, for reasons best
snsOn 70 nto tS business sairs viii % con-
eidered satisfactory 10 the assessor is rs