The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-01-05
FAVOR REPEAL OF STAMP TAX.
SAVANNAH GETS 1T IN THE NECK
FROM THIS ACT.

The City Is Contributing over $780,
900 a Year More 10 the Govern
ment From This Source Than Was
the Case Before the Passage of the
Act-Eanks, Railroads, Express
and Telegraph Companies Would
All BE Glad TO See the Bill Re
pcaIed-WouId Bring JOY to the
Hearts of the Druggists Also.
The bill by Congressman Lewis OF Geor-
gia 10 repeal the stamp tax act adopted
as a war measure shortly after the declar-
alton of the war against Spain meets
with almost universal approval in Savan-
nah The stamp tax act catches every
line of business and every business trans
action of any character requiring the ex-
change of cash or goods by means OF
notes, checks, bills of lading, deeds, trans
fers of property, money orders, and prac-
ucally every other exchange or communi-
cation requires the aflixing of a little
stamp which may vary all the way IN
value from one cent to many dollars In
surance policies, kilograms aud express
receipts are among the things taxed.
Savannah has probably felt the effects of
the tax act more heavily than any city of
its size in this section of the country
The revenue of the government from this
source through the local stamp office here
has Teen increased more than $4,000 dur
ing the last year the receipts have gone
up from less than $4,000 a year to about
$4,000. Next 10 the breweries, whose
taxes were doubled under the stamp act
the railroads have probably felt the effect
of the act more than any other line of in
dustry the contributions of the roads GEN.
tering al Savannah to the stamp fund
being over $l.CG9 monthly. This is be-
cause one cent revenue stamp is attach
ed to each bill of fading.
The banks would be glad TO see the b'll
repealed Their customers must afiix
2-cent stamp every check or draft
drawn by them, no matter how small the
amount, and on all notes the tax is
cents per 800. While the banks DO not
pay the tax the law interferes with their
business and tends to reduce deposits IS
small depositors prefer to keep their
money in their pockets or in some oih1r
convenient place rather than be compelled
to afiix a 2-cent stamp TO each check
drawn.
Il am satisfied that this very thing ac-
counts largely for the apparent scarcity OF
money in circulation" said "A banker yes
terday. "Many people, even the well to
do. prefer to keep the cash on hand nee
eSsdTy ~ pay tHtiI tuIlNIt t-Nlfcil''7a' 'AAA-
er than adopt the more convenient meth
cd of placing their cash in bank and pay
ing their bills by means of checks. When
YOU consider thar there are thousands of
people throughout the country who are
keeping anywhere from $50 to 800 month
out of the banks because OF the stamp tax
on checks you can readily see what IN e.
feet this must have upon the amount Of
bank deposits and hence upon the circula-
ton of currency
1T may not be generally known" said
the banker, but the banks are caught for
a heavy tax under the internal revenue
act being taxed according 10 their capital
This is a very considerable tax. icing
81, 800 in the case of this bank. While the
stamp act effects cur business somewhat
I do not know but what the banks raj
rather have the other lax done away
with if they had their choice OF the two
evils"
The express company pays the stamp
tax on its bills of lading in this state,
though in many other states the shipper
pays the tax This is under decision
of the State Supreme Court. The tele-
graph companies. on the contrary require
their patrons to affix the 1-cent stamp re
duired on each dispatch, the companies
being interstate corporations not WITHIN
the reach of the state courts.
The druggists. both retailers and manu-
facturers, would like 10 see the stamp tax
act repGaieQ. EVERY JdtGiAt AAtSulNlAC VI
proprietary article of whatever descrip-
ton is taxed, the tax being cne-eishth Of
q cent for each cents of retail value.
The local medicine manufacturers have
found this tax quite a burden, amounting
10 several thousand dollars a year eacn,
for which they get no compromising ad-
vantage, as they state that they have been
unable 10 increase the prices of their prep
arations The retail druggist, however,
have suffered in just the contrary direc-
ton They state that the manufacturers
of patent medicines generally throughout
the country have made The stamp tax an
excuse for increasing prices, the increased
price being in nearly every Instance great
er than the cost of the stamp tax 10 the
manufacturer. The manufacturers thus
get The tax out of the druggist and profit
besides while the articles being sold al
the standard of prices as before, the drug
gists have no chance to recoup their loss
es from heir customers. When, in addi-
ton TO this, it is remembered that the rate
war among the druggists is still on, pro-
urietary articles being sold by the lead
ing druggists At cost, it will be seen thar
their situation is not Il very happy one.
AS the tax is one which so generally af-
fects almost every branch of industry and
business, the demand for its repeal may
be expected to meet with a cordial in
dorsement from all sections of the oouu-
Try, without regard 10 political or party
bias. Al the same time 1t is admitted that
the measure has proven one Of the most
successful revenue raisers that the gov
eminent has ever adopted, and hence some
opposition from the administration fuan-
ciers is 10 be expected 1t is reasonable
to expect. however. that amendments will
be made TO the act which will remove the
more Objectionable features.
FLEMING TO BE POLICE SERGEANT.