Year: 1865

FINANCIAL AND COMMERCIAL.


------~>>~.>~~-,~~->~>> ssa.a


FRIDAY, June e-sP II


rnere was Q moderately large business transacted q
the first stock board this morning but prices were gems
rally fraction lower than the second board yesserosy
New York Central showed decline at the close Oh ~
Hudson River y, Reading Michigan southern ~ Fort
Wayne y, Ohio and Mississippi certificates y, Cumoer-
land " Quicksilver e. Ere and Cleveland ana ritts-
burg were unchanged Government securities were dull
but steady.


At the open board at one O'Clock prices we're
Q fraction, higher At The second regular board
the market was dull and somewhat irregular.
New York Central closed u higher than at the first
board Reading r. Illinois Central 21s Erie was steady.
Cleveland and Pittsburg declined ", Rock Island y,
Fort Wayne n. Government securities were inactive
and without change Al the open board prices were
fraction higher and the speculative feeling stronger
New York Central sold at coz % 49, Hudson River lo3x,
Reading o. Erie 75x, Michigan Southern cox, Cleveland
and Pittsburg 81 Rock Island o. Illinois Central l2l
Northwestern 24x


The money market continues TO show increasing ease,
and on government and first class railway securities the
general rate FIVE per cent with exceptional transactions
the former at four and the latter at six In the dis
count line what little business Is done in strictly first
class commercial paper Is q. eK Per cent ordinary
good rates at7a9. 3I


The gold market has been aattened little to-day by
the bears the report that the shipment Of specie
on Saturday will not be heavy previously rumored
but still viii be large The opening quotation was 1885,
but steadily declined from that point to 1914, and
closed at l37X.


The demand for foreign exchange has been moderately
active but buyers deferrng their rcmittances In
some cases in the hope Of lower rates. Of which, how
ever there is sign in the present condition Of our
foreign trade Bankers sterling at sixty days is quoted
at 10Y Xthe majority of transactions being at 110K
Short date bills offered at 1llh Mercantile bills are
In demand but scarce, at l09H g.


The subscriptions the thirty loan are little
more active but they hardly yield sufficient to supply
the pressing of the Treasury Hence the issue OF
certificates OF indebtedness to meet defcienciesa pan
however preferable to paying or the public creditors
with thirty II is stated that about eighty
millions of have been paid out in this manner
to creditors pledged hold them for periods OF three or
four months without selling them Upon these they
have however, borrowed freely, and in somo in
stances effected the equivalent Of sale. The
notes have been, therefore, offered below tho
government price by second and third partes and this
has probably nterfered TO little extent with the
legitimate subscriptions of the sub agents Of the Tres
sury The government is believed to require than
two millions day in OF its receipts from reve





loan fall short of the required it has to resort to the
expedien OF paying either certificates of ndebt
edness in substitution for those maturing making
forced of the thirty loan The expenditure
OF the country calls for reduction but the process OF
contraction is always difficult and slow.


The of the United States Cutting still pending be-
fore the United States Circuit Court regarded with
siderable interest in Wall street. The construction placed
upon ninety Of the Internal Revenue law by
the brokers that the tax Of onetwentieh of per
all sales Of stocks gold, or contracts for
such saos, intended to be tax upon brokers' COM
missions and that it to apply exclusively to their
commission business They maintain that it not in
tended by the tha. the should be deducted by
them from their customers accounts but that being
willing to do q commission business for loss than
eighth each way, they adopted the custom of
adding the tax on sales to their usual commission.
That the intention Of tho act however, TO levy the
tax sales by brokers, when acting for themselves
well others, is obvious Upon the propriety or even
the equity of such tax opinions may reasonably differ
out In the OF government securities there good
for its repeal they less able TO bear 1t
than speculative Stocks which 1uctuate moro violently
and rapidly. We informed that the aggregate
ceipts OF the Internal Revenue Department for the
tax in question during the last year amounted
TO seven millions of dollars which paid the





would argue favor of reduction of tho tax from
twentieth to say one foroth nftieth of per
cent making It, however general tax upon all sales Of
securities and specie, whether made by bona de owners
or brokers II the decision Of Judge Nelson in the
referred 70 is in favor of the brokers' II is against the
law and at tho same time the law If rightly construed
somewhat onerous the bulk Of the business OF tho
Stock Exchange results in loss to the operators tho
transactions being almost entirely speculative. But as
the OF brokers likely net losses
their the brokers themselves there Is
why the latter should be exempted from tax to
which both under the act equally liable.


That for entire year, however, after the act came
into effect the officers Of Internal Revenue should have
applied for and collected from the brokers only the tax
on their commission business and that they should
come forward TO collect on all their sales shows the
inefficient working of the system thus far the incom-
petcncy OF the officials entrusted with the duty
or enforcing the provisions Of the law, and
also In degree the crude character
OF the law itself II Is indeed not too much to say that
Internal Revenue law and regulations, are for the
part series OF bundcrs and tissue Of absurdi
tes calling compendious condemnation and the close
investigation Of the commissioners appointed by the Sec
rotary Of the Treasury In accordance with the authority
Of Congress- 70 inquire into our system Of taxation.


These form committee OF three; but not
that they nave entered upon the active dues OF ther
ofice yet II is high time, nevertheless, that they
did We have heard their names mentioned, but
having never heard them before they have passed from
our memory aud the public's 1t is TO be hoped, hoy
ever that they competent mon and not mere nsru
rnonts OF power tools OF party The present Secre-
tay Of the Treasury appears TO have the best ntcnons
bat he has hard task before him, financial di
cultcs may bo said only to have begun, that the
Is ended The country demands the utmost
economy in expenditure and the maximum OF taxation
with the minimum Of TO the taxpayers AT
present tho people burdcned By mul.
titude OF oppressive and obnoxious exactons, which
yield little 10 the Treasury the cost Of collection being
nearly equal TO the revenues produced Taxation Is
encc, and Que In which inexperienced The
leading fault Of the existing scheme Is that too