New-York tribune., 1875-03-11
FINANCIAL INTERESTS.


STAMPED CHECKs-EFFoRr MADE TO ENFORCE
THE PENALTY FOR EACH VIOLATION OF THE
IAw-vERY SERIOUS LOSSES THREATENED TO
BANKERs-TnE ACTION OF MANAGERS.
Banking men throughout the country are
very much excited over the action Of the Internal Reve
nue. Department at Washington This feeling grew out
of o recent effort the part OF the Department TO
establish an nquisitorial system OF Investigation
Into the manner OF transacting business at the
banks. with n view TO learning whether any
checks which wcrelDot properly stamped have been
paid. The hanks called upon TO furnish
she evidence of any careesnoss omission on their
part IN this respect the Obi ec being to collect the
penalty $a for every check discovered to have been
paid without stamp With the purpose OF ascertan'ng
the history and OF the proposed invesuSauoh'
inquiries made yesterday, and the following in-
formation obtaned:
In 1862 the stamp tax. always odous. was imposed
ms a war necessity. Changes occurred from time to
fine until is72 when the Stamp law was repealed. All
requirements for stamps on papers were cut
of except for checks, the tax on these
being the smallest and most Objectionable OF
all Many believed that it had been the intention OF
Congress to repeal tais provision also and that the fail
ure 10 was accidental omission, which would
be remcded at the next session. The panic reduced
the revenue that It deemed inadvsable TO DO
thing that would further decrease the receipts OF
fhe Government In the meantime, owing TO the ex-
pectaon that tax merely nominal and not in-
tended to be strictly enforced while many thought
that 1t had actually been repealed, laxlV
In tho observance OF the law enGeDdered Paying
teIlers in the transaction Of business. without the
knowledge of the chief Officers OF The bank would cash
the unstamped checks OF customers who were ignorant
Of the requirements OF the law These facts became
known 10 persons hanging upon the skirts OF
high officials, who found scheme 10 make the banks
pay the penalty OF their failure comply with the law
all s1a haplg h0V
deposors who draw only few checks.
and when their bankbOoks are balanced,
they do call for their vouchers THIS was well under
stood 10y the revenue officials, and therefore 1t was
much more convenient for the moiety-hunters to at
tack bank, where they would have less trouble in
finding evidence than in searching private offices They
began their observations New-YOTk several weeks
aee and have extended all through the principal cities
Of This State and into the New England aud Western
States.
The first stems were taken in regard TO some OF the
principal hanks OF this city, among them being the
American Exchange Bank at Broadway and Cedar-st.,
and the Metropolitan Bank at Broadway and Pine-st
Applying TO the President OF lhe american Excnange
mission 10 examine the vouchers OF the bank 10 this
sgen. Insisted the President demanded 10 see MS au
thOIitv. letter confirming the mans statements OF
h oie5i POSITION vas loau'en, but tnG frGs
prOccediug intended, and the agent departed,
saving thu nc WoI,i Te.ut1 aeaiu' A. tue MetIopo-
Tan Bank man called, and representing himself as
specis agent. demanded to see the vouchers John T.
the agent obliged TO leave the bank without having
The effect Of dscOnco The agents and they directed
their attention TO Western and country banks gen
teman connected with bank in Syracuse and now in this
cty said that made application at his bank
the unclaimed vouchers OF his customers He declined
10 SHOW the vouchers taking the broad ground that the
action OF the special agents was nquisitOria and
violation OF the rghts Of the citizen and Of the nsitu
were the property Of his bank but that the latter
merely the custodian, and ned them In trust for
10 Tu Of haOk
might not violated the determined bank officer col
ectcd ali the unclaimed vouchers and then quietly sent
them around 10 llS patgous
In some cases whore bankers had refused to comply
with the demands OF the special officers the latter
threatened to have the bankers taken before Internal
Revenue snperysor Hawley. in New York, and IN addi-
the performance their duties. There about $50
assessors engaged N tis work OF searching the hank
smt The assess6s and agents are retcent IS to the
n@'tg oG 81; VI !e2se l!yestIgattInsc They aa, d,
here & i' a to hoa ali paid pa%ss aSssS chss @
bank official bas estimated that If this oppressive
penalty inncteL L. there would he oss OF over 10000
TO the banks Aplt from the fact that largo number
,ber have lost their stnnp from tie fact that they have
very little adhesive power, ana The stamps drop
ofcer went into the apartments where the bank vonc
kept Immediately after the visit OF one OF the
Treasury agents and hy brief examination discovered
60 unsamppd checks the penalty on which would az
eregate So COO legal opinion oD the right of assessors
or special agents to invas banks other institutions
Tor the purpose OF obtaining tbeo vouchers haS beeu
ohtained and is herewith submitted ---s--<~
Tie question whether the Collectors OF Internal
ReyenIe have visitoria powers over banks, &c, in
spect 10 taxes imposed upon checks IS presented for
examnatiOp. Toe right Of visitation aud examination
l. claimed by virtue OF section 377 OF the laws OF the
United States revised jane 1874 This section is re-
enactment Of sections 81 and 50 OF the act OF Jane 3O
and wherein the visitora powers were expressly
confined 10 taxes upon liquors ana cigars In the pro
cess OF the revision Of the statutes tue praseOogy OF
this section has changed and abbreviated but the
powers conferred thereby have not been enlarged or ex
tended. believe The construction OF the section OF
the revised Immediately preceding Section III and
particularly Section Si72 shows concusvely that this
Tor the apphcatiop section imposed
Upon checks would bo utterly impracticabe, and yet
tie literal wording OF the section would require every
individual 10 make annual returns OF the checks used
by him under heavy penalties -, ,..,,o.o,,- ,.o
n will be by the working OF section 3171, the
penalty for refusing admlssiqn TO an office imposed
when the owner OF tho orlidlnS or one VINO has ine
agency from him, amt manifeStly refers to business
which is carried or an article OF property ~heh Is
manufactured in such building Tbealucles or objects
az TO which visit0ral powers are given on the sec
tion are those which are made. produced or Kept
III such building. Checks are neither " made or pro
duced in bank, they must be held then TO bring then
within the meaning OF the act 10 be kept in such
bank Now check which hos been paid Is rot Kept" IN
any article or object subject 10 AXaton and
Its whoe vitality article OF property has been lost
U 1t ever had any IL is no longer subject TO taxation
ali there about It that some persons may be liable
To- q suit for not having previously paid tax on IT,
Tie policy Of the law oOnoxlous as 1t it) has been 20
discover property subject 10 taxation ana which might
he forfeited If taxes had not been paid upon IT, but not
snectiSn merely for the purpose Of founding
penalties upon their diseove1es More than all else the
iion which should abrdge or yioate the rights aud
PRIVILEGES OF the citizen.
AL an informal conference Yesterday between Mr.
Williams President OF the Metropolitan Bank; MI Tap
pen President Of the GallatB, aud Mr.. Vermiye Pres
iden Of tho Merchants National Bank, the subject of
the stamp tax checks was considered. The Bank
officers written TO the Commissioner OF the Internal
Revenue Department some time before asking for an
official ruling lnterpre citation or the Tax law feser
day they telcgTaphed for reply, and received iu an
swer a telegram stating that the letter was coming
CONSIDERATION OF TARIFF PROVISIONS.
A meeting of the Board of Trade was held
yesterday afternoon at their at No. % Parkrow
The Board arranging committees for consideration Of
separate sections OF the tariff imported goods with