The sun., 1898-06-23
NOTES AFFECTED
Bankers Forced to Change Their
Methods Of Doing Business.
BROKERS TO SHIFT BURDEN
Must Pay Money on Call Loans Addi.
tional to the Regular Per Cent.
Courts May be Called Upon to
Determine on Several Para
graphs in the Act.

Local bankers are discussing witt
great deal OF interest those provisions
the new Revenue law which affect thei
business, especially that which impose
a tax upon call loans.
As call loans are made chiefly to stool
brokers on the collateral of the ex
changes, the matter is of great import t,
all people trading in the share market.
There are two paragraphs of the staml
tax schedule, which seem to cover col
lateral notes given by brokers to bankers
who loan them money. Here is the first
of the paragraphs in question:
"Blll of exchange (inland), draft, Ger.
tificate of deposit drawing interest, order
for the pa, of any sum of money,
otherwise than at sight or on demand, or
any promissory note except bank notes
issued for circulation, and for each re-
newal of the same, for sum not exceed
ing 500, two cents; and for each addi-
tional 500 or fractional part thereof in
excess of 500, two cents'
| The contention ia that under this para
graph collateral notes are certainly in
cluded, which means that the borrower
must pay $40 upon a $780, 600 loan in ad-
dition to the regular rate of interest
charged. The brokers' customer, who
pays the broker 6 per cent, for the use of
the SlOO,OGO, will be obliged to pay 1872
per cent. under the new law, that is if
the burden should De entirely shifted to
the customers shoulders.
The second paragraph, if held on the
same collateral, will more than triple the
tax imposed by the first paragraph.
Mortgage or pledge OF lands, estates,
or property, real or personal, heritable
or movable, whatsoever, where the same
shall be made as a security for the pay
nlent of any definite and certain sum of
money, lent at the time or previously
due and owing or forborne to be paid
being payable; also any conveyance of
any lands, estate, r. property whatso-
ever, which shall be intended only as
security, either by express stipulation or
otherwise; or any of the foregoing ex-
ceeding one thousand and not exceeding
one thousand five hundred dollars,
twenty-five cents; and ON each five hun
dred dollars or fractional part thereof in
excess of fifteen hundred dollars, twenty
five cents; provided, that upon each and
every assignment or transfer of mort
gage, lease, or policy of insurance. or the
or continuance of any agree
ment, contract, or charter, by letter or
otherwise, a stamp duty shall be required
and paid at the same rate rs that i'm
posed on the original instrument"
Some of the brokers interpret this par
agraph as meaning that an additional !
lax OF $50 on 100000 is imposed upon
collateral deposited by a broker for IL
bank loan, making the collateral note he
gives promissorv note as well as Il
pledge of property, 81 that b,sld - the /
bank interest he pays the obligation of
go.
1t seems to be agreed that the first is
Intended to include collateral notes, but
hat the second is not 50 intended. 1t
$ not unlikely that the courts may be
'a!led upon to DasS upon certain sec
ions OF the Act which seem to tax
transactions Of the nature Just described,
vice.