The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-03-18
The Application of the Stamp Tax.

The Application Of the Stamp Tax.
On March 4th. Mr.. F. D. Happen, President
OF the Gailatin National Bank, Of New York,
addressed letterin behalf of himself and other
bankers to the Commissioner of Internal Rove
nue., asking his decision of the following ques-
tions:
Ftrst-Are notes, drafts, and acceptances,
when made payable at a bank, subject to
stamp tax OF two cents, and if so. does the tax
apply TO notes. drafts, and acceptances drawn
or accepted prior to Feb. g. 1875, and which
have matured and sincebeen paid?
Second-Does the tax apply to checks drawn
by bank upon itself, for the purpose of pay
ing its own dividends. and the dividends, con-
ponS, or interest OF other corporation?
Thtrd-Are checks drawn by State, coun-
ty, or city Government on bank subject to
this tax?
On the 18th Mr.. Tappen received a reply from
Commissioner Douglass, in which the latter
says:
reply to your specific questions:
First-That if there is any understanding
between the bank and the maker of the notes,
or acceptor of the checks, drafts, or orders pay
ces shall be paid by the bank and charged in
the account OF the maker, drawer, or acceptor,
in the same manner as ordinary checks would
be, such notes and acceptances are consider
ed liable to the two cent stamp tax as ''vouch-
ers" for the payment of money by the bank.
! This applies to notes, drafts, &C., made, drawn,
or accepted prior 10 Feb. s, 1875, when paid by
the bank on or after that date.
| Second-This tax applies to checks drawn by
a tank upon itself for the purpose OF payingi its
own dividends, coupons, or interest of other
corporations, or for other payments.
| 1hird-Checks drawn by state, county, or
city officers in their official capacity upon pub
lie bonds deposited in a bank are exempt if
said bonds are kept separate from any private
accounts, it not being within the intent of the
law to tax public treasury.
Twill add with reference to some other ques-
tions frequently proposed to this office: That
orders for dividends are subject to the tax If
drawn for definite and certain sum, but not
otherwise.
| An ordinary certificate of deposit used in the
ordinary manner is not liable.
| Interest coupons are considered exempt =
Bills Of exchange, foreign as well as inland,
when drawn upon bank, banker, or trust
company, are held to be subject to the tax,
whether payable at sight or otherwise.
Duplicates of bills, orders, &C., are liable the
same as originals. Receipts not selating to
banking business, for instance for rents, are
exempt.
THE INCREASED POSTAGE ON TRANSIENT
NAIL MATTER.-The Postmaster General, af-
ter full consultation with the law officers of his
department. finds that lie has no authority
to suspend or temporarily evade the provisions
of the new law raising tile postage on mail
matter Of the third class, which includes tran
sient newspapers. The Postmaster General is
in receipt of intelligence from many of the pest
offices announcing the delay of large numbers
| OF newspapers OIL account of insufficient post
age, and proposes to give directions to forward
such as has accumulated u, to the time Of the
| general announcement of the increased rate.
The Postmaster General in explanation states
| that the mistake arose through misunuer-
standing Of terms. While the subject was I'M
der consideration in Congress, in reply to let
ter from the chairman of the Senate committee
OF post offices and post roads as to whether the
transportation of merchandise seriously OBJ
structs the transportation of the mails on rail
roads, the Postmaster General replied that it
does not threaten to do so at present but that
| on some of the trunk stage routes it does now
| give embarrassment and will lead to extra eX-
pense; that he did not favor doing merchan-
disc transportation business at the same rates
| for long rs short routes. Ae stated that as the
law had been in operation for SO short a time,
| he did not feel warranted in recommending any
very radical changes, but suggested that the
rates OF postage on merchandise be doubled
that Is, the rate should be one cent for each
| once or fraction thereof instead of one cent for
| each two ounces. In the nse of the term mer-
chandise the Postmaster General had no inten-
ton to include transient newspapers, but, fail
| ing to draw the distinctions as it existed in his
own mind, the committees of Congress applied
| the term employed i'll the post Office enact
mcnts. The Postmaster General feels the mis-
take keenly, :ne if there were any possible way
Of relieving the people without special legisla-
ticn he would take advantage of it.
| The Legislative Finance Committee have
had their faith in Mr.. MacKinnon, the recapi
talization man, somewhat shaken. According
to the Richmond correspondent of the Peters
burg news tit turns out he is not quite all Inc
pretends to be. The Governor has letters from
the Gilliatts and the Earrings, of London
| which take some OF the wind out of his sails
and the Finance Committee have instructed
their clerk to write to Mr.. MacKinnon, who il
now Ia Arkansas, and say to him that he mus
furnish undoubted evidence of his ability to d
what he proposes to undertake before they
will further consider his proposition. 1t is no
| doubted that he represents British Banking
| Association, but the character and resources O
that Association, it is charged, have been over
| stated"