The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-11-07
WAR TAX ON CALL LOANS.
GAGE REFERS THE CONTENTION TO
THE ATTORNEY GENERAL.


New York Hank. Have Declined IN R.,or,
to the Treasury IN. DETAIL, Of Th.,r =. ~
Loan Bu.,ness sinc. July I. 1909
Claus. Of the Law That IL in ou.,tlon.
W,su,xo-o, Nox "a ,.,,.r .,,
n, tho Tra..,r, n.n.r,,.n, 49,. ,.
dra...d % e.or.,a., n.ao r., = 80. au
simmon. ns..ia.., =, ,h. ron.,s 49,,
Bnnk q, N.- w .,.,,na hi. ,isua 90 81 ae
nor,.d in,on,ion y, ,ha aa,r.,.r, a. 49,.
.iIIoon. =, NJ vi, ~. ,a..I,o
w.. 'o pn " ne" ho't VsnAs o.e unaer inc
banker. tbatI,tb. tar ia ..,c,ed q, Iii in.
n.n, hrar..an. 80, ,.,.s,aa San WI. u.N, y,
business. II a stamp should be placed
on loans mads on pledeed securl,i.. In
the Same way that mortgages on
real or personal property are stamped.
the banker say. an exorbitant rate OF interest
would have to be charged. The bankers repre-
sent further that the collection OF back taxes
Of thIs character, back to July !, 1898. would
70 ~ vu,uensoe 70 .noso VINO nave con-
Quoted their business with no thought OF hav-
s,n, 49,. ,a,,.r,o ~. CO., ns 'n. MI
PIN mons ls'er 70 tne commissioner OF In
upon ref.rrsd 10 tho NEUTRALITY-SUSPICIOUS., ,or !,
i.o.i on,n,an '' ''' 7"
A,oo-d,,o % Oh. co-,,.t..,.
, eou'us w '"e commissioner OF interha
Nevenue all call loans OF an amount exceeding
.Sa NO, s I'm s! ,sa arc 'aesc. to
n 20 o' 20 cen''' apu ,or ea'n sooo IN excess OF
S,ions 'nIy ~" c,"ss a, OF ,b I'D
enue law on which Tho Com mi..,o,.r r.,,., -.
"Mortg.qs ar nledrs ~ /, nd. .s,,,. - go
erty. real or personal, heritable. or movable.
whatsoever, where the same shall be nads IA
.:ourit, for the psym.n, ., any definite and ID
certain sum OF money. lent at the time or pre-
y!op,ly ,du. and owing or tor.Sorno i to be be
;I ny a 10 sos o. or P9psI IN
eith.r by eIpr.ss stinni,ton on Ivy 10 ssSTr,y
or any OF the forssoinr eIeesdinp al Uoj
and d net ssSo exceeding 800. p cents; and On
snd every or transfer 81 moor ssS
SSartep sS 81 any s9n,rscs
hst 9e rsSua'd and paid a, the sam. rate az
The banks have been Tor some time mating
all their call iosns under general aerssmcnts
promissory notss formerly UTILIZED In ,his
way payment OF the war tax Of y cents psr q 100
th.P nsM S,n s' Of n. oIsd heIssrdns
authorities. PrssIdsnt Simmons OF the Fourth
SSS,ionai Bank prepared this statement ysstef.
snce to the eontsntion bstWsen the intereal
banks OF New York city. together with the Dor.
rowsrs upoa collateral seourIty on tbs othsr
hand A 10 tbs nsosssity q. ths nss ~ .yonr
msntary STAMINA whsn loans s+e m,da bv
banks. banTsrs or private indi,iduais vnon
collateral security. Without the reouIrIne Inv
ths Lender oS sitL:r nromissnry Nj. nrs.py
ins,rumsnt in nritips snscinc,IIy NJ. Ir,og az.
COLLATERAL riven for the loan ''sINA 'H'
Sans nonths sincs ,hs I'pIt.i s,.,.s Com,
nission.r ~ in,srn.l Ra,snn. ai,s,,aS IN III
ColIsctor az this tistrict 10 rsopirs tba NJ
Sort babSs 10 msEs rstprn ~ n ~ - III
*.
snce July /. 1ss,S mnon which no .,nmn tny
had been pnid. rnlinr that wbsn co,iat.rsis
ibonds stocIs AZ vers bvnn,hec.tsJ ~ ~
hoyrox.r 10 ,a:,raa ,nsn 81 mo rnc s',h Oy 2
no ipstrnmcnt wss sIecm,od Nv n,,,i..fn
the dealing the trnnsne,ion con.ti,u,sd n
the War Rsysnu. law .ucb tnx smonnHing 90
about one.twentieth o, per eent Tbs
bsnss rers nty1ssd that N. Cnmmi..,o,n,'.
ruling was srronsou Wv
81 Bscau.s an oral pledp. wns not .uhiact
10 Stang duty un der The War Rsysnus law ''s'