, 1872-12-28
MONEY AND C0HlM|ERGE.


MONETARY.
FE1pAr EVENING, Dec. q. /
MoneT continues tight in tho local market, |
but there, is o tendency to IN on5icr condition.
Tho receipts OF hogs and cattle haye fellen oil
t}is. week considerably, and tho demands Of !
however, will not bo llkeiis, to let out ,nouey
very freely until after they know the day dosg-
mated IN the expected call for report. In the
open market money is in better supply, apd good
commercial paper would DO taken at ~, por cent
Der month.
One important feature il the monetary situa-
tion in Chicago is the increase Of Eastern money
offered for loans real estate. There WAS
period OF BONE weeks after the Boston IRE, in
which the offers Of such money from Now Eng
land nearly ceased. but they aro increasing again
now quite largely.
New York exchange is in very large supply,
but the demand for remittanccs to New York is
also unusually large. Sales we're quotable be-
tween banks to-day at 75o per 81 900 discount.
TEE 5000, coo REDISTRIBUTION,
Secretary Boutwells forte seems to be eelf-
contradiction, OF at least it must be acknowl-
edged taat be possesses the faculty Of making
himself misunderstood to greater extent than
any other public man. His electioneering
principle announced III his official reports,
ana bis fiscal policy in the administration
OF the Treasury has contradicted both his
speeches and his official reports. The latest in
staace Of A1r. Doutwell's getting himaclf mis-
underetood is in his denial that he indorses the
recommendation OF the Comptroller Of Currency
TO repeal the provision Of the act OF 1870 for
redistribution Of So, 900: 600 Of National Bank
notes, and to issue S25, 100000 Of additional
hank circnl larlou in five annual instalmonts. The
Secretary SAYS he has not expressed. any opinion
on the subject, and Btands entirely uncommltted
70 that proposed imitation. It was with great
deal Of pleasure that few days ago we COM
mended Secretary BoutweI's supposed sensible
views of this S25, 600, 900 redistribution matter
But it seems llr. Boutwell, would not be himself
il he we're not denying or contradicting some
statement Of his own or somebody else. .-
:. TAXES ON SAVINGS DEPOSITS.
The internal Revenue act OF June So 1864,
deyied T. tax Of one-haH Of per cent per annum
on al deposits Of money in banks OF any kind,
eented by certificates Of deposit. The e1emp-
lions to this were: National Banks Which we're
already taxed at the ratio OF q half OF per cert
per annun on their deposits BY the National
currency act passed June 8, 1864; aud all that
class OF savings banks ''havirg no capital stock,
and whose business wes confined to receiving
deposits and loaning the Eame for the benoht Of
depositors' only, and which did no other busi-
ness OF banking" On the deposits ct all sav-
dngs banks not included in the class just
mentioned, the tax was to be collected except
upon deposits Of $500 or less. By the new law
oi June 6, 1872, this last mentioned exemption
IS extended to all deposits of each individual not
exceeding $4,000. The average amount Of say
3ngs deposits to the credit OF Individual deposit
ors throughout the United States does not ex-
coed s400 per capita: 1t appears, therefore, that
from taxation. There is however, still smother
qualification to this intricate legislation, viz. !:
The Commissioner Of the Internal Revenue has
instructed Supervisors that I'm the new law
The deposit Of any person that
has more than that Gum to bis credit, but only
e1e1npts the deposits OF such persons as have
no more than $4,000 to their credit in one &C.
$4,000 to his credit, he must pay the tax on the
whole $2,00l. A careful consideration Of the
foregoing exemptions will show that the class Of
savings deposits which would be liable to the
tax OF 4 OF per cent per annum is so small
that savings deposits might we'll have been
entirely exempted from taxation. The legal sit
uation would then have been much clearer, and
the net result in the collection Of revenue
would have been about the same as it will he un-
der the new law.
EyADESa TIE Two-CEyT TAX.
The National Banks In some parts Of the
country are adopting the contemplate and diA-
on bank checks. The Meadville (Pa) Repub
lica1 says a number of banks in that place an6
elsewhere have substituted receipts for checks
for counter use, in order to R.ve the tax. II
'A4@4 ~ ee~s eAo 49,! ~ eng ~oAAoos
letter was addressed to Mr.. Griffith, the membe,
Of Congress for the district, by James E
Mcfarland, Esq, Cashier OF the Merchants
National Bank, which elected from the Treasu1,
Depa1tmen reply to the effect that: ~
banks and their depositors choose to substitute
receipts for checks, they must Of course incu
any legal risk which may arise from the use Q
such vouchers. But when, es in the form in
closed by hfr. Mcfarland. paper, which pur
ports to be receipt, contains the name OF
third party az payee, negotiable words, othe
additions, FROM which it appears upon its face t.
be Of the nature Of check, it ehould be stampe
u SUCH"
UsuR1oCs INTEREST.
The Comptroller Of the Currency mentione
In his last report that three Of the Nsw Epglan
6tateB-Rhode Island, Massachusetts, and r.
pently Connecticut-had abolished usury Ian
entirely, and thus inaugurated free trade i
money. On the other hand, New York eti
makes usury criminal offence, for which th
offender can be imprisoned, and the New Yor
Court Of Appeals recently decided that til
National Banks OF that State arc not exe1n1
from the statute The futiity OF attempts
regulate the price of money is shown by tt
fact that for considerable portion of the re,
IN New York, money ls LET at the rate from 80
100 per cent per annum on call 1oanB. Tt
evasion Of the law is accomplished By calling a
that portion Of the interest over the legal ra
commission" !" which is common practi
not only in New York but elsewhere.
LOCAL STOCK AND BOND l1ARKEET.
Messrs Lunt, Preston d kean quote as X
1owH this afternoon: