The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-10-05

Va-NNfNfN%Nefl - ~ 9NlA9SA WIZ
missioner Raum, to-day, rendered the fol-
lowing decision in relation to the taxation
Of banks and bankers
TREASURY DEPARTMgNT,
OPFICR OF INTERNAL REVENUE.
October 5, 1881.
Where deposits are made Of checks
or drafts which are Immediately car-
Fiel to the credit Of the depositoF, and
which are subject ut once 10 payment by
check or draft, then they must be treate1
as taxabledepOsits on the day the same are
received, and entere,l TO the credit OF the
depositor, But in adjusting the daily ball
ances OF deposits OF the Clearing House,
settlements will be recognized, and banks
and bankers will rectify balances appear
ing on the books ut the close OF each days
business, by deductinS tho amount Of
checks received from the Clearing House
each morning, and treating such checks as
though they had been received and charged
up before tic close OF business on the pre-
vious day. Where q banker borroWs
money upon p'edge OF stocks
or bonds for the purpose Of completing
payment for the same stocks or bonds,
the money so received can not be treated
US deposit within the meaning Oi the
statute. Where's bank receives money for
Immediate investment in bonds or stocks,
either in partial or in full payment for tha
same, and such money Is so invested on
the day It is received, or on the following
day, 1t is not q deposit; but where money h
received for future investment in bonds or
stocks, il would be subject to the order OF
tkl a NIL mn l. A.
cd rs q deposit subject to taxation. Where
q banker sells bonds or stocks received from
or held by him for customer, and RENTS
the proceeds on the day OF the same, oI
received on the following day, the amount
Is not deposit, but where such proceeds
are carried to the credit Of the customer,
and held subject 10 his check or draft, such
money Is a deposit, subject to taxation.
Where money, checks or drafts ARE received
by bank or banker and carried to tile
credit OF q person who delivers the same.
or for whose use the same are delivered,
they become and are adeposit In the hands
OF the bank or banker, and II subject TO
check or draft, or payment on the return Of
the certificate OF deposit or evidence Of
debt, they are deposit subject totaxatioh,
whether the money be payable on demand
or at some future day, with or without In
teTOst, and whetherth the depOsitOr be secured
by collateralS or not. But where hank,
by It's charter has authority 10 borrow
money, or private banker goes into tho
market and negotiates for and borrows
money to secure the payment SOf which
notes are given, or bonds or stocks pledged,
the money 80 obtained Is not % deposit, and
y not subject to taxation, as such depos.
Its made with bank or banker, and mixed
with other funds OF the bank, although ne
Ceiyed for special purposes, such as Tor in-
stance, TO pay dividends or interest ON Cou-
pons, or to provide Tor other payments, are
subject to taxation. But special deposit
OF mSney held In tact to be returned to the
depositOr, ls not subject 10 taxation as a
deposit Banks and bankers when max
ing up their returns for taxation are not
entitled to deduct from balances OF deposits
shown upon their books, amounts Of
money In possession and not invested, nor
amount Of money redeposlted with other
banks or bankers. The business Of the
banker Is to negotiate purchases or sales
OF stocks, bonds, exchange bullion, coined
money, bank notes, promlssary notes or
other securities.
He y kes no possession as broker Of tho
subject matter Of negotiation. Every per-
sou, firm or company having a place OF
business where stocks, bonds, bullion, bills
Of exchangeor promiSary notes aro received
for discount or for sale IL regarded in law
as bunk or banker, and the capital and
deposits Of such bank or banker, nfc sub
ject to taxation as provided in seCtiOn8 ,408
Of tho United States Revised Statutes.
Where checks or drifts are received for
collection md remittance, and arecollected
and remitted for the following day, the col-
leCtions should not be treated as II deposit;
but where money collected Is held BY the
collecting bank and remitted at q snlsC-
quent time, during the period II Is 80 held
II should be treated as deposit.
Signed GREEN B. RAuM,
.- Commissioner.