The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-07-30
WASHING on.
Important Action Relative to the Tax on the
Borrowed Capital Of Bankers.
Appointment Of Commissioners Under the
Treaty Of Washington.
General Sheridan's Views OH
the Indian Question.

the Indian Question.
WASHINGTON, July 90 1871.
appointment of Commissioners Under tue
Washington Treaty.
Information has been received here that the Bit
ish government has appointed Mr.. Quincy, the Re-
corder OF the city OF London, Commissioner on Its
part under the Treaty Of Washington. The Presi-
dent 1t Is known. has appointed the United States
Commissioner Judge Frazer, Of Indiana. The third
Commissioner Is to be appointed by the United States
and Her Majesty conformity; but in case the third
Commissioner shall not have been so named within
period of three months from the exchange Of the
Publications OF the treaty. then he shall be named by
the Spanish Minister at Washington. It is thought
here, however, that no such contingency will arise,
as Minister Roberts, under the treaty, Will
designate the third Commissioner only in the
event OF the failure TO do so by the United
States and Great Britain. The recent telegram
from Madrid stating that he had been authorized to
exercise the functions or the third Commissioner Is
premature. The Commissioners under the treaty
are to meet at the earliest convenient period after
they have been respectively named, to examine and
decide all such claims as shall be laid before them
the part of the governments OF the United States
and Great Britain. 1t has heretofore been stated
agent or attorney under the treaty provisions Henry
Howard to present and support the claims on It's be-
half and to answer the claims made upon it, and to
represent 1t generally in oil matters connected with
the investigation and decision thereof. The United
States government has just appointed on lis part for
similar purposes Mr. John 5. Hale, Of New York.
None OF the arbitrator to meet at Geneva have yet
been named.
The Tax Upon Borrowed Capital Of Bankers.
The announcement to-day by Commissioner
Pleasonon, that the provisions OF the Revenue law
should not be construed to impose tax upon Dor
rowed capital of bankers, and instructing assessors
hereafter assess the same upon the basis OF the
capital owned by bankers and employed by them in
o banking business, created surprise among those
acquainted with the history OF the subject. Com
missioner DelanO shortly after his appointment,
decided that the tax of one-twentyourh OF one per
cent should be assessed monthly upon the capital
employed in the business Of banking, whether
by bankers or brokers-that u.s. beyond the
average amount invested IN United States
bonds. This exemption, however, applies
only to national banks. During the spring
and summer OF 1869 the New York bankers
ana brokers opposed most strenuously the ground
taken by MIR. Deano, but were finally compelled
to yield and comply with the order to pay the
assessment made on all borrowed capital used in
their business transactions Under the present rul
ing OF Commissioner Peasonton claims for refund
ing the amounts already paid Will be fled and that
will bring the matter directly before the Secretary
OF the Treasury who will refer the construction OF
the sections OF the act bearing upon this tax to the
Attorney General for his opinion. Judging from the
renor OF previous decisions emanating from the De-
partment of Justice, Attorney General Alderman Will
decide that Commissioner Pleasontons construction
i,pn md hat q IN OH no
assessed on borrowed capital. The public will then
be treated to repetition Of the order OF May 10 last
wherein Mr. PleasOnton was Overrued in his
opinion or the law authorizing the collection of
| tax OF two and oNc-nan per cent on dividends,
interest coupons &c. for the last five months OF
1870 1t appears that the increase Of revenue from
the tax on bankers during the fiscal year ending
June 80, 1870. when the order OF Commissioner
Delano TO collect the tax OF one-twenty- fourth
Of per cent on borrowed capital
had been in operation throughout the year, was
1914 Ia excess Of the amount collected during
the previous fiscal year. The entire amount Of this
tax collected during that year was s4419,el1 Of
which the collection districts OF New York city paid
nearly one-tenth. OF the increased collections
during the year 1870 1t Is safe to say that fully
$3.50 900 was from the tax on borrowed capital, while
the claims Tor refunding Will probably exceed twice
that sum.
General Sheridan and the Indians.
In forwarding TO the headquarters OF the army a
letter from Lieutenant Davidson, OF the Tenth United
States cavalry, expressing the fear OF war between
the Cheyennes and the Kiowas. General Sheridan
| endorses it as foOws--
Much of wha; you hear may be set down as Indian
| talk. 1t is well known on the Plains that the Ko-
| was are the most cowardly and at the same time
the most noisy md troublesome OF the tribes dc
| think they canget any special sympathy from any
of the other indian tribes If the agents will only
hold out stiny 20 the policy that when the IndiaT
| commits q crime he must be punished the lndiaI
question VIII soon pass into thing OF the past.
The Interest ON the New Loan.
The checks FOR the quarterly interest on the new
| loan VIII be mailed on Monday to all parties hodn,
registered stock. The checks are printed on vioe
| colored paper containing localized fibre, the SAM
as III the legal tenders and fractional currency
The wording on the face OF the check is as olows:-
| Funded loan of 1881. Interest at five per cent
Treasurer OF the United States Assistant Treasurer
or designated depository, pay to 49, or order II
| CON- dollars, FOR three months interest due on
registered stock, and charge amount In general ac-
count with Treasurer United States.
On the back Of the check is the following endorse
| ment:-
This check is payable on presentation, properly
endorsed, at the Office OF the Treasurer at Washing
ton the Assistant Treasurers at Boston, New YORK
Philadelphia, Charleston, New Orleans or San Fran
cisco, the designated depository at Buffalo, Chi
cago Cincinnati, Louisville, Mobile or Pttsburg.
vgnette Of President Grant ornaments the left
OF the check.
The subscriptions to the new loan during the past
week were less than sixty thousand dollars.
DisiilIeries Held by the Goverument.
| An article having been published in many news
| ppers the enect Of which creates q wrong I'm.
pr,sson as to the number OF distilleries now held
blythe Internal Revenue Bureau OH purchase at
saes disrain and as to negotiation for the pos
ehn f.ttAv
| fats taken from the records is pub
lihed:-Tne government now holds eighteen
| tncts OF real estate BID in at such
sies since February, 1862 to secure taxes that
Guild not have been otherwise COLI ected, OF which
nnc are distillery premises. No negotiations are
gang on with SPECTATORS or others for the pos
session Of this property, but 1t Is held subject to