The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-09-16
TAXATION OF RANK DEPosITn
representatives. OF the BANKERS Have Z
Hearing Before Commissioners Raum.

Hearing BeioFe Commissioner kpuIn.
WASHINGTON, September l5.-Sectiol
4OS Of the Revised Statutes provides tina
there shall be levied and dcOllected and paid
a tax Of one twenty.fourth Of one per CEN
each month upon theayenge amount Of The
deposits OF money, subject to payment BY
check or draft, or represented by certi6'
Gates OF deposit or otherwise, whether pay
able on demand or at some future day, with
any person, bank, association, company OF
corporation engaged in the business Of
banking, The power to collect this tax i
conferred upon the Commissioner OF Inter.
nal, Reyenue, who Is also empowered to
make the assessments for the collections.
In constituting this law the Internal Reye.
nue. office has held that where checks were
carried to the credit Of the depositor,
against which he had authority to draw by
check or draft, it was q deposit within the
meaning Of the statute, 1.-THE checks were
left with banks for collection, and when
collected TO be carried to the credit OF the
deposit0r the rule established is that they
can not be treated as deposit until the
collections were actually made, In the
practical operation oil the above law aud
the decision Of the Internal Revenue office,
there has Of late been considerable friction.
Recent investigations made by the Com
missioner Of Internal Revenue for the pur-
poseof ascertaining whether State banks
had been complying With bereguirements
OF the law and the regulations Of the De-
partment, and the reports that they have
resulted IN finding large amounts OF back
taxes due the government, owing 10
improper returns made by the banks,
have somewhat excited the managers OF
private banks, who have been at q loss to
know exactly what tho intention OF the
Commissioner is in regard to future trans-
actions. In order to ascertain the object In
view, representatives and counsel OF prom.
incnt banks in New York and other cities
held a conference to-day with Commission.
er lsaum. He stated In substance that all
they asked was that the existing law should
be applied In such a manner US to give the
Government simply one.half Of oneper
cent on the actual deposits ascertained
from taking the monthly average. They
claimed, however, that In making up this
monthly average the Government should
not insist upon q method which would ex.
aCta tax on each days shifting Of accounts,
making the same money taxable In more
than one place at the same time. e..l
After somewhat extended interchange
Of views, Commissioner Raum sald the
question under discussion appeared to be
u simple question concerning the proper
method ofascertaining the taxable depos.
Its held each day by the batks. He thought
the method which has been in force In tlle
Ireasurers Office since 1900, In tho asCer,
ninment Of the average amount OF deposits
held by tho National Ranks each day was
q Just and proper method for the private
banks That Is to say, theavenge amount
OF deposits should be estimated from bal.
ances ut the close Of business each day and
before the exchanges and settlements OF
the next day, including all balances sub,
ieCt to payment ON check or draft, or rep
resented BY certificates Of deposit or ether.
wise, whether payable on demand or at
some future day, with any person, bank as.
ISOLATION company or corporation engaged
IN, the, banking business, including depos.
Its made OF check. or drafts immediately
carried to the credit Of tho deposltor, and
subject At pnpe to payment by check or
dTaIt. The representatives Of the banks
suggested that the clearing house settle.
ments; for instance, Of to-day could not
conveniently be made up before tomorrow
morning, and that the balance thus ascer,
tgined should date back to the previous
day, as the modern demands oi business
made italmost impossible TO OComplete these
clearing house settlements on the day Of
tho transactions. The proposition OF the
bankers appeared to strike the Commis.
sioner fav0rably, and theconterenoe, which
was chiefly devoted 10 the method Of most
accurately and promptly ascertalning the
daily deposits, concluded with the under.
standing that the Commissioner would
consider the question whether the
method pFoposed by them would
he acceptable To the Government.
During the conference the Commissioner
remarked incidentally that recent invest.
cations by the Internal Revenue Office had
developed the fact that In all OF The large
Cties there had been found banks which
owed the government largo amounts Of
taxes due, beoAuRo VI o failure on their part
to make proper returns, He said that the
government expects TO get from the New
York City banks at least 81 ,00O, 900 Of these
delinquent taxes and large amount from
Boston, Philadelphia and baltimore.