Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-04-19
Payment Of Interest in Advance
Requires Notes to be Stamped.
PAYMENT OF INTEREST DUE DOES NOT
Recent Letter to Carey lnskeep Put in
the Form of Ruling and Pubs
lkshed in the Bulletin
Letter and Ruling.
[From Fridays Daily.l

ohA Ddliy
The question as to whether or not
payment of interest on note past due
has the effect of renewing note and
thereby subjecting it to the operation
of the stamp tax law, was u much
mooted one until Carey inskeep, cash
Ter of the City Savings bank, wrote
the department and received reply
to the effect that it did not. However,
payment of interest in advance of a
matured note does not have the effect
of renewal, and the instrument
should be stamped the same as the
original.
The gist Of the communication re-
ceived by Mr.. Inslleep has been put in
the form of a ruling and is printed III
the bulletin issued by the department.
In order that no confusion might arise
over a seeming discrepancy with those
who read the former article in the
Courier some time ago, both the Cour-
Ter article and the ruling are given.
The Courier Article.
The revenue department. holds that
payment of accrued interest on note
past due, does not have the effect of
renewing the note, but is considered in
the light of forbsarance on the part
| of the holder, thus not bringing the
matter within the operation of the
stamp law as renewal. This is in a.
cordance with a letter received by Ca
rey 1nskeep. cashier of the City Saw
lngs bank, who queried the department
about the matter. An agent of the de-
partmerit was in the city few days
ago on the lookout for infringements
of the revenue law among the banks.
1t is said that while here he laid down
the hard and fast rule that payment
of interest on notes past due was in
effect a renewal of the note and must
bear stamp under the section of the
law governing notes. 1t is said that
one of the banks Immediately COM
piled with the order, but Mr.. Inskeep
was disinclined to take the revenue
mans word for it and wrote the de-
partment, with the following result:
Treasury Department. Office of the
Commissioner of Internal Revenue,
Washington, d. c., March %, 1900.
Carey Inskeep, Esq, Cashier City Saw
ings Bank, Ottumwa, Iowa:
Sir-This Office is in receipt of your
letter of March II, 1900, in which you
state that owing to the diversified -ul-
ings as to whether notes secured by
mortgage require to be restamped up
on payment Of interest you ask to be
informed whether note which is past
due requires to be restamped when
accrued interest is paid thereon, and
same is Endorsed on the back of the
note.
You are advised that this office holds
that promissory notes which have been
matured and which have been allowed
to run without suit are held not to be
renewed by the payment of accrued
interest, altho said payment of accrued
interest may be Endorsed on the back
of the note. This is looked upon as a
| forbearance and not renewal, the
holder not relinquishing his right of
action for any stated period.
Respectfully,
G. w. Wilson, Commissioner.
This is question that has bothered
many people but the ruling from head
quarters settles the matter for all time
and persons who are in doubt would
do well to keep in mind the above COM
munication as it is official and gov
erns.
The Last Ruling.
':To Collectors OF Internal Revenue and
Others:
"The following rulings, with regard
to internal taxation on loans secured
hv hedges OF collateral under Sched-
ule A of the war revenue act secured
June ID, 1898, are in accordance with
the late opinion of the honorable at
torney general, dated March 20, 1900
| (see treasury decisions. internal reve-
nue. ruling No. SOY, and are published
for the information and guidance of
collectors of internal revenue and all
others interested.
az ANY promissory note, whether
given for call loan or any other in