The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1870-11-30

eIc ttaue, aNu II IL the source Oh
much complaint. To remedy this, and
correct the evils of this system. ] would
recommend that the law be so amended as
to allow no goods entered for export in
bonded warehouses to be withdrawn there
from for consumption, upon payment OF
tax, until twelve months from the time
they were SO bonded. BY limiting the time
for withdrawal, no goods will he entered
except such as are actually intended for ex-
port, and the privilege Of withdrawing for
consumption after twelve months will re-
l;eve parties who, having entered goods for
export, fail afterward 10 export the same.
Should IT be deemed ineXpedient to limit
the time before which permits for the with
drawal Of goods on the payment of tax are
not to be issued by the Collector, then I
would suggest that further authority be
given to the Commissioner to establish
bonded warehouses a. other places than at
ports of entry, giving such facilities for
bonding and equal time before payment of
taxes To wholesale dealers and jobbers in
manufactured tobacco in other large cities
as are now enjoyed by those doing business
i'll tho cities mentioned, where export
bonded warehouses are located.
Oct Of Js4iy ID, 1871 deem it my duty
to call the attention Of Congress, through
you. to certain defects, antiquities, and
contradictions which in the hurry of legis-
laticu incidental to the closing labors of a
session, appear in the act of July ID, 1870.
1t is believed TO have been the intention to
retain all the taxes imposed upon sales of
distilled spirits, Wines, and malt liquors by
the act OF July 90, 1868, and acts amend
atory thereof. Section Of the act of July
IA, 1870, nevertheless repeals the tax upon
sales OF malt liquors. 1t was evidently the
purpose OF section 5 to empower collectors
IN raynit n n limo r,rSnr fn nc 1879
all penalties for issuing instruments I'M
stamped unless the omission Of stamps was
with fraudulent intent but owing to q
change made in the bill as reported by the
Senate Finance Committee, the letter of the
law iSsuchast to postpone until August, 1871,
the relief which was designed TO be imme-
diate. Section II provides "that sections
100, 121, and 122 Of the act Of June so, 1864,
as amended, shall be construed to impose
the taxes therein mentioned to August l.,
1870, and no longer" Section Is provides
g that there shall be levied and collected,
for and during the year 1871, tax of On
per centum on the amount Of all interest on
coupons paid or bonds or other evidences Of
debt, issued and payable in one or more
years after date, 10y any OF the corporations
in this section hereinafter mentioned, and
the amount of all dividends of earnings, IN
come, or gains hereinafter declared by any
bank, trust company, savings institution, in
surance company, railroad company, canal
company, turnpike company, canal naviga-
ton company, and slackwater company,
whenever and wherever the same shall be
payable, and to whatsoever person the
same may be due, including non-res-
dents, whether citizens or Aliens" It
is believed to have been the inten-
ton to continue the per cent. tax until
Aug. l, 1870, and to substitute a tax of24per
cent. therefor OH ana after that date -; but
owing to the peculiar language Of the statute
no tax can be withheld from coupons fall
ing due during the last five calendar
months Of 1870. According to recent de-
cision Of the Circuit Court in the State Of
PENNSYLVANIA, no tax can be withheld from
dividends, coupons, or interest, payable
during the first seven months Of 1870, and
corporations cannot be required to pay any
taxes upon the dividends payable during
the remaining five months. The right TO
withhold tax from the salaries of persons
in the civil, military, or naval service Of the
United States during the first seven months
Of 1870 turns also upon the points involved
in the case above named. The amount oftaX
indirectly involved in this question is very
little less than six millions OF dollars. It's Of
such Importance that have not felt at lib
erty to acquicScc i'll the decision of the Cir
| cult Court until it shall have been affirmed
by the court OF last resort. Steps have been
taken, therefore, to have the opinion Of the
Supreme Court of the United States pro-
nounced upon the questions in issue.
Owing to IL change in the rate Of taxation
from ) to 2H per cent, taxes properly paid
upon surplus prior TO August l may now
be again appropriated to The payment of
taxes upon earnings since that date, SO that
in some cases these later earnings escape
, h.,,- led
differently if the law had provided for Il de-
uuction Of taxed surplus from dividends in
stuad Of Il reduction of tax from tax.
Public Resolution No. 70, approved July
IS, 1870. relieved Insurance companies from
| certain taxes, but i'm act passed the next
! day restored them in language so plain as,
| in my Judgment, to operate as repeal OF
| the resolution. The repeal OF the tax upon
receipts for money includes practically re-
peal IF the tax upon demand and sight
drafts, bank checks, &c. A person who
mas money on deposit, instead of drawing
| by check, receives the money and gives his
receipt, which is retained by the bank as
voucher. This practice is increasing, and
seems likely TO become general. While it is
| in evasion OF taxes, it is one for which the
present law provides 10 remedy. The re-
peal of the special tax upon apothccaries
takes effect May l, 1871. After that time
| they must either abandon the dispensing
and sale Of wines and spirits oificinal upon
physicians prescriptions, or otherwise, or
pay special taxes as liplor-dealers, unless
there shall be additional legislation on that
subject So far us they are concerned, the
act of July ii, 1870, increases the taxes.
The detects mentioned are but part of
those already discovered, and probably but
O small part OF those which will eventually
be found 10 exist. Some OF thCm this office
has attempted TO reconcile and avoid by
construction. How far this construction
will he sanctioned by the courts remains to
he seen, The Commissioner, for reasons
stated. recommends that the stamp tax on
prepared mustard, sauce, and syrups, jams,
and ieIlies. be abolished. By my direction
tic collection Of taxes on ship-bullders, as
scssed under the fourth section OF the act
of March 81, 1868, was ordered TO be Sus-
pended. ] would recommend that Con-
rrcss provide tor the remission Of all such
taxes assessed but not collected on the sales
of ship-builders.
tinted States Direct TaI.-By act Of
Congress approved August >, 1861, direct
tax of $40, 0OO, 900 per annum was appor-
toned to all Of the then existing States and
Territories and the District OF Columbia.
This act provided that each State and Ter
ritory and the District Of Columbia might
pay its own quota, If notice of the inten-
lion thereof should be properly given on or
before the second Tuesday OF February
next thereafter. Under this provision Of
law all States and Territories and the Dis
trict OF Columbia formally assumed the
PAYMENT OF the tax, except Delaware, the
TERRITORY Of Colorado, and the eleven in
surrectionary States. Provisions were ar
ranged for making the collections IN