The San Francisco call., 1899-09-12
DEPOS|TORS PAY
NO COMMISSION
To UNCLE SAM
No Tax on a Receipt
Given a Bank.
MUST PRESENT PERSONALLY
IF OFFERED BY THIRD PARTY
IT MUST BE STAMPED.
Internal Revenue Collector Holds
That Non-Negotiable Paper Is
Exempt From Operation of
War Revenue Law.
MUST PRESENT PERSONALLY
IF OFFERED BY THIRD PARTY
IT MUST BE STAMPED.

1t will be of interest to the general pub
lie to know that there are some things
which the war-revenue tax does not tax.
This information will especially interest
those who have small sums on deposit in
the savings banks, but are not in the for
tunate position of being able to employ
the advice of able counsel to protect their
interests. 1t appears that a man with a
bank account may draw upon the same
without being compelled to make a forced
contribution to Uncle Sans income, pro-
vided he makes a personal visit TO the
bank to get his money. In other words.
the depositor is not obliged to pay COM
mission to the Government for the privi-
lege of using his own money, as has been
generally supposed was the case.
This welcome fact has been brought to
light through the attention of Internal
Revenue Collector Lynch being called 10
been for some time past issuing un-
stamped receipts to depositors, to be
signed by them when they desired to draw
money from the bank q practice allege1 e ID
which provided that all checks, drafts,
etc, must bear two-cent revenue stamp.
Collector Lynch says the bank in ques,
tion is acting strictly within the law and
he further says that the savings banks OF
this city are using the same methods and
exact a revenue stamp only when the re-
opinion is in accordance with decision
rendered by the Commissioner of Internal
Revenue after consultation with the At
torney General. The decision was the re-
suit of a communication from the cashier
of the Bank of Lancaster, S. c., and is as
follows
Treasury Department.
WASHINGTON, D. c., Oct. 2l 1898.
Sir: have to acknowledge the receipt Of
your letter of the 10Th inst, in which you
req he rllli n
a receipt in following form:
- LANCASTER, s. c.
Received of the Bank of Lancaster. Of Ian
caster, S. c.. dollars on account
filled out in the handwriting Of an official
calling for and receiving money. is liable to
stamp duty
In reply you are advised that, in accordance
with the advice of the Attorney General, this
Office holds that a receipt given TO bank
by a person 10 whom the bank is indebted
depositor or otherwise, or for whom 1t
than a receipt received or given for any
other debt or demand.
upon checks which are commercial, negotiable
instruments. check, however, is not required
to be in any particular form. II it is In a
form sufficient to constitute an order Tor the
payment of money and assumes the character
of a commercial, negotiable instrument theh
1t is subject TO the tax.
There is much banking done, especially in
savings banks, without the use of checks at
all the depositor having a book in which the
bank denotes the amount deposited one
side and the amount drawn out on the other
OF course the depostor in such case draws
the money out of the bank but he does II In
such a way not to subject 1t TO stamp duty,
because he does not give a check. SO. II a
person does not give a check he does not
have to pay taxes it and If ne goes to the
bank and the bank pays him upon it's dues
to him and he gives a receipt such receipt
does not require a stamp; but If he issues a
receipt so that it will be good In the hands
of another person to draw upon his deposit
for the amount of 1t then 1t loses the character
of a receipt and becomes check or draft ana
is subject to tax. Respectfully yours
G. w WILSON Acting Commissioner
The commercial banks have not yet
adopted the receipt plan, according to Col
lector Lynch. but pay out money only on
checks or drafts which must be stamped
or they will not be accepted. Collector
Lynch further says he started to round
up the banks in this district that were
using these receipts several months ago.
hut when the decision in the case quoted
was promulgated he was obliged to stop
proceedings.