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Cards for game called "authors," and the like, differing wholly from ordinary playing cards, are held not to be subject to tax under this act.

It is held that any number of cards in a deck above 54 and not exceeding another of 54 must be regarded, for the purposes of this act, as belonging to another pack, upon which an additional tax of 2 cents must be paid. (10 Int.

Rev. Rec., 277.) Sec. 1100. [Act of February 24, 1919 (40 Stat., 1057).] That on and after April 1, 1919, there shall be levied, collected, and paid, for and in respect of the several

matters, and things mentioned and described in Schedule A of this title, or for or in respect of the vellum, parchment, or paper upon which such instruments, matters, or things, or any of them, are written or printed, by any person who makes, signs, issues, sells, removes, consigns, or ships the same, or for whose use or benefit the same are made, signed, issued, sold, removed, consigned, or shipped, the several taxes specified in such schedule. The taxes imposed by this section shall, in the case of any article upon which a corresponding stamp tax is now imposed by law, be in lieu of such tax.


13. Playing cards: Upon every pack of playing cards containing not more than fifty-four cards, manufactured or imported, and sold, or removed for consumption or sale, a tax of 8 cents per pack.

Regulations concerning collection of tax, and requiring monthly returns of manufacturers and importers. (T. D.

2817.) Sec. 1102. [Act of February 24, 1919 (40 Stat., 1057).] That whoever


(c) Manufactures or imports and sells, or offers for sale, or causes to be manufactured or imported and sold, or offered for sale, any playing cards,

without the full amount of tax being duly paid;


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Is guilty of a misdemeanor and upon conviction thereof shall pay a fine of not more than $100 for each offense.



3407. Definition of words “ bank" and

" banker."
3408 (amended). Tax on circulation

of banks and bankers. 3409. Taxes, when payable ; how cal

culated. 3411. Circulation, when exempted from

tax. 3412. Tax on notes of persons or State

banks used as circulation, etc. 3413. Taxon notes of town, city, or

municipal corporations paid

out by banks, etc.
19. Act February 8, 1875. Tax on

certain parties' own notes used
for circulation and paid out
by them.

20. (Same.) Tax on circulation

other than national banks used

and paid out. 21. (Same.) Return of amounts and

payment of tax. 3414. Banks' and bankers' monthly re

turns. 3415. In default of return, Commis

sioner to estimate, etc. 3416. State banks converted into na

tional banks; returns, how

made. 3417. Certain provisions of this chapter

not to apply to national banks. 22. Act March 1, 1879. Insolvent

banks exempt from tax.


" bank"

Sec. 3107. Every incorporated or other bank, and Definition every person, firm, or company having a place of busi- and "banker.” ness where credits are opened by the deposit or collection of money or currency, subject to be paid or remitted upon draft, check, or order, or where money is advanced or loaned on stocks, bonds, bullion, bills of exchange, or promissory notes, or where stocks, bonds, bullion, bills of exchange, or promissory notes are received for discount or for sale, shall be regarded as a bank or as a banker.

Who are bankers under this section? (Seldon v. Equi-
table Trust Co., 94 U. S. 419; 23 Int. Rev. Rec. 171; War-
ren v Shook, 91 U. S. 704; 22 Int. Rev. Rec. 77.)

Liability of foreign banks doing business in United
States. Suits to

taxes capital employed.
(United States r. Bank of Montreal; 30 Int. Rev. Rec. 310;
21 Fed. 236.)

A loan and trust company regarded as a bank. (United
States v. Farmer's L. & T. Co., 25 Fed. Cas. No. 15070; 3

Int. Rer. Rec. 62.)
SEC. 3408. There shall be levied, collected, and paid, as
hereafter provided :



Tax on circula. tion.

Third. A tax of one-twelfth of one per centum each month upon the average amount of circulation issued by any bank, association, corporation, company, or person, including as circulation all certified checks and all notes and other obligations calculated or intended to circulate or to be used as money, but not including that in the


vault of the bank, or redeemed and on deposit for said bank; and an additional tax of one-sixth of one per centum each month upon the average amount of such circulation, issued as aforesaid, beyond the amount of ninety per centum of the capital of any such bank, as

sociation, corporation, company, or person. On circulation of branch banks.

In the case of banks with branches, the tax herein provided shall be assessed upon the circulation of each branch severally, and the amount of capital of each branch shall be considered to be the amount allotted to it.

Taxes on deposits and capital repealed. Act of March 3, 1883. (22 Stat., 488.) The taxation ceased December 1, 1882. (29 Int. Rev. Rec., 171; 17 Op. Atty. Gen., 539.)

When the plaintiff admits that his business was that of buying and selling stocks for his customers, and that in such business he employed capital, he proves that he was a banker within the statutory definition, and that, within the meaning of section 3408, his capital was employed in the business of banking. (Richmond v. Blake, 132 U. S., 592; 36 Int. Rev. Rec., 24.)

The tax on circulation of national banks is paid to the Treasurer of the United States. (Sec. 5214 as amended. See sec. 3417, p. 580.)

Certificates of indebtedness issued by a person or a corporation are not taxable as “ circulation" under section 3408, unless intended to circulate as money. (United States v. Wilson, 106 U. S., 620.)

What is capital? (Mechanics and Farmers' Bank Townsend, 5 Blatch., 315.)

Merchants Nat'l Bank v. United States, 42 Ct. Cls., 6. Taxes, when payable.

Sec. 3409. The taxes provided in the preceding section

shall be paid semi-annually, on the first day of January

calcu. lated.

and the first day of July; but the same shall be calculated at the rate per month as prescribed by said section, so that the tax for six months shall not be less than the aggregate would be if such taxes were collected monthly

In regard to abating tax against insolvent national, State, and savings banks, see section 22, act of March 1, 1879 (20 Stat., 327), and Supplement, Revised Statutes No. 1,

(Johnston 1. United States, 17 Ct. Cls., 157;

Jackson v. United States, 20 Ct. Cls., 304.) See p. 580. Circulation,

Sec. 3111. Whenever the outstanding circulation of exempted from tax. any bank, association, corporation, company, or person,

is reduced to an amount not exceeding five per centum of the chartered or declared capital existing at the time the same was issued, said circulation shall be free from taxation, and whenever any bank which has ceased to issue notes for circulation deposits in the Treasury of the United States, in lawful money, the amount of its outstanding circulation, to be redeemed at par, under such regulations as the Secretary of the Treasury shall prescribe, it shall be exempt from any tax upon such circulation.

Legislation affecting taxes upon the circulation of State banks. (Merchants National Bank v. United States, 42 Ct. Cls., 6.)

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page 243.





SEC. 3412. Every national banking association, State

Tax on notes of bank, or State banking association, shall pay a tax of ten Barks used as tite per centum on the amount of notes of any person, or of

culation, etc. any State bank or State banking association, used for circulation and paid out by them.

The act of March 3, (18 Stat., 507), provided that the Secretary of the Treasury be authorized and directed to settle and release any claims for tax on circulation of evidences of indebtedness made against any mining, manufacturing, or other corporations other than against any national banking association, State bank or banking association, by such corporations paying the tax, without penalty, that shall have accrued thereon since November 1, 1873.

Internal-revenue tax on State banks. (14 Op, Atty. Gen., 98; 16 Int. Rev. Rec., 57.)

The tax of 10 per cent on State bank circulation was designed to drive all such circulation out of existence. (Remark of the court in Head Money Cases, 112 C. S., 580,

596.) Sec. 3113. Every national banking association, State

of town, city, or bank, or banker, or association, shall pay a tax of ten per

muvicipal corpocentum on the amount of notes of any town, city, or rations, paid out

by banks, etc. municipal corporation, paid out by them.

This tax not a direct tax and not repugnant to the Constitution. (Veazie Bank v. Fenno, 8 Wall., 533; 10 Int. Rev. Rec., 195.)

Above decision cited and approved (National Bank v. United States, 101 L. S., 1) where the United States suell a national bank for 10 per cent of the notes of the city of Little Rock paid out.

Tax on circulation of State banks (Deposit Savings As-
sociation 1. Marks, 3 Woods, 533; 23 Int. Rev. Rec., 241,
Fed. Cas. No. 3813).

Section 3583 provided a penalty for issuing notes for a
less sum than $1 intended to circulate as money. (United
States v. Van Auken, 96 U. S. (6 Otto), 366; 24 Int. Rev.
Rec., 204; United States 1. Roussopulous, 95 Fed., 977.)

Sertion 3.583 has been reproduced in section 178 of the

Criminal Code. Act of March 4, 1909. (35 Stat., 1088.) SEC. 19. [Act of February 8, 1875 (18 Stat. 311).] Ten per cent

on parties, That every person, firm, association other than national

than bank associations, and every corporation, State bank, or tional banks, on State banking association, shall pay a tax of ten per used for circula centum on the amount of their own notes used for cir- tion, and paid culation and paid out by them.

Sec. 20. [Act of February 8, 1875 (18 Stat. 311).] Ten per cent That every such person, firm, association, corporation, tion of other State bank, or State banking association, and also every than

banks used and national banking association, shall pay a like tax of ten paid out. per centum on the amount of notes of any person, firm, association other than a national banking association, or of any corporation, State bank, or State banking association, or of any town, city, or municipal corporation, used for circulation and paid out by them.

The main object of the Federal legislation on this subject was to secure for the national currency the exclusive use in the United States as a circulating medium; and this 140184°—20—37





object was sought to be effected by imposing upon all competitive money such a tax as would make its issue unprofitable. (21 Op. Atty. Gen., 560.)

The effect of the act of February 8, 1875, was to extend sections 3412 and 3413, which included only banks and banking associations, to all persons, firms, associations, and corporations. The subject matter of the tax, to wit, “ notes used for circulation paid out by them," was the same.

Construction of sections 19 and 20, act of February 8, 1875. (21 Int. Rev. Rec., 346.)

"Wages certificates" of Philadelphia & Reading Railroad taxable. (16 Op. Atty. Gen., 341; 25 Int. Rev. Rec., 167; see Philadelphia & R. R. Co. v. Pollock, 19 Fed. 401.)

Tax limited to obligations payable in money. (Hollister v. Zion's Co-operative Mercantile Institution, 111 U. S., 62; 30 Int. Rev. Rec., 111. In re Aldrich, 16 Fed. 369.)

Glass manufacturers' cases. Warrick and Stanger were glass manufacturers and issued their notes in various amounts, from 5 cents to $5 each, in payment of wages. These notes circulated as money, and when redeemed were constantly reissued. Every issue of the notes taxable.

(United States v. Warrick, 31 Int. Rev. Rec., 327; 25 Fed. 138.)

A national bank paying out on checks and otherwise notes of a bank chartered in a foreign country is subject to tax of 10 per cent upon the total amount of all notes it has received and used as a circulating medium. (20 Op. Atty. Gen. 534.)

Notes of Canadian Banks (33 Int. Rev. Rec., 405; 34 Id., 53, 61, 77, 93 and 94; also T. D. 20507.)

A bank is not regarded as paying out Canadian bank notes when it simply sends the notes to Canada for redemption. (34 Int. Rev. Rec., 101.)

Tax on circulation of notes other than those issued by national banks applies to Canadian bank notes. (T. D. 2782.)

Notes of the Dominion of Canada not taxable. (34 Int.
Rev. Rec., 61.)

Notes of State banks taxable. (T. D. 784.)
Certified checks of State banks not notes. (T. D. 885.)
Ice tickets not taxable. (19 Op. Atty. Gen. 98.)

Opinion of the Attorney General as to whether payroll checks issued by manufacturers and others, and certificates issued by clearing-house associations when used for circulation, are notes within the meaning of section 19, act of February 8, 1875. The tax applies only to promissory notes. (39 Int. Rev. Rec., 398; 29 Op. Atty. Gen. 681.)

Persons, corporations, banks, etc., purchasing from foreigners and returning tourists notes of foreign banks and corporations for resale to persons going abroad, not liable for 10 per cent tax if such notes are not used for circulation in United States, (T. D. 1041.)

Clearing-house certificates not notes within the meaning

of section. (T. D. 1271.) Return of

Sec. 21. [Act of February 8, 1875 (18 Stat. 311).] a mounts and payment of tax. That the amount of such circulating notes, and of

tax due thereon, shall be returned, and the tax paid at the same time, and in the same manner, and with like penalties for failure to return and pay the same, as provided by law for the return and payment of taxes on

circulation, imposed by the existing provisions of internal revenue law.


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