The New York herald., 1878-09-19
WASHINGTON. w
FROM OUR REGULAR CORRESPONDENT.

WASHINGTON, Sept is, 1878.
RANKING CAPITAL INVESTED IN UNITED STATS
poNps-Is THE PREMIUM PAID ON GOVERN
MENr SECURITIES Exempt PROM TAXA
TIoS "a QUESTION For THE COURTS.
II will be remembered that the Attorney General
several weeks ago gave opinion to the effect that
reporting the amsunt OF capital invested In United
States bonds national banks and savings institu-
tons were entitled to report only the par
or face valuo OF the bonds. The law re-
ouiring tho taxation Of banking capital Is
separately executed by both the Commissioner OF In
ternal Rsven and the United States Treasurer, the
one collecting the monthly tax OF onetwenty fourth
per cent and the other the several ssmrannual
taxes The latter has held that only the face value OF
tho United States bonds could be deducted while the
has allowed the deduction OF the actual
amount invested, which, in many cases. included
nigh premium paid Tor government securities. Tho
Commissioner adhercs TO his views, and the bank
ing institutions are in a quandary as to what
course to pursue. If the opinion OF the Attorney
General accepted final then the Com missioner is
bound to collect from the banks the tax on all such
premiums heretofore regarded exempt and, as the
period extends over eleven years, the aggre-
gate amount OF back must be very large. On the
contrary, the ruling OF the office OF the Commits
mssioner is correct then tho banking institutions
are entitled to refund OF the taxes paid under
tho United States Treasurer's ruling, which, in the
aggregate must amount to q large snw Claim agents
have at work Tor some time accumulatng
cases and presenting arguments in favor OF refund
of Tho tax collected the amounts paid in OF
the par value OF tho bonds The opinion OF the At
torney General. It is believed would bo sustained in
the United States courts, and for this there
now no desire the part Of the claimants
Tor refund TO press theirs cases before the
Treasury Department. The language OF the
law Is, "The amount invested In United States
bonds" The whole question is whether the govern
ment can take cognzance OF the fact that certain
class OF its bonds are worth more than their face
value, and whether the premium is entitled TO be re-
gardcd as part OF THO amount invested in United
States bonds The matter Is likely to go to the courts
for settlement.
DESIGNATION OF SENIOR zAMAcoNA, THE
MEXICAN MrNIsTER-HIs PROBABLE Sue
CEssoR.
Notice has been received the Mexican Legation
Of acceptance by President Daz OF the resigna ton
OF Sehor Zamacona as Minister to the United States.
The probable OF Se1or Zamacona, men-
toned in recent sdvlcos from Mexico-Gowsz
rnl1cio--was one time Charge d'Ansires in WASH
ington, and also held the office OF Mexican Com
missioner hore about years ago. 1t is thought
that Senior Zamacona will DO made Minister OF State
upon his return to Mexico next month. II so he will
succeed Seiior Mata whose health compsls him to
abandon the ood winter OF the Mexican capital for
tho genial mate of his homo near the Gull.
THE NEW BARGE oPFICE-PRoPosITIoN OF THE
CITY ACCEPTED.
The Supervising Architect OF tho Treasury to-day
teegraphed to Collector Merritt nt New York that the
Secretary of Treasury accepted the proposition of
tho city OF New York in regard tho site for the
new barge office.