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er 3, 1898.
Record and Guide
PRICE PER YEAR IN ADVANCE SIX DOLLARS.
Piit-lished ei'ei-y Saturday.
Telephone, Cortlandt 1370,
CommunlcaMons should be addressed to
C. W. SWEET, 14-16 Vesey Street.
J. l.LrNDSEY, Business Manager,
•' Entered at the Post-Off tee at Xem York, X. Y., as second-i'lass matter."
SEPTEMBER, 3, 1898.
THERE has been a considerable contraction of Stock Es¬
cliange business in the past few weeks, in both stock and
bond divisions of the market. In the former the reported trans¬
actions have dropped from the record maximum of 890,000 shares
in one day to betv.'een 300,000 and 400,000 in one day, with the
latter reports much nearer the actual total than the former. In
bonds there has been a drop from $7,500,000 to less than $2,000,-
000 for a day's total. These changes have been made in spite of
activity in a good many specialties. Considering the proportions
of the shrinkage in the volume of business, the relatively small
decline iu prices is really remarkable, and suggests that the in¬
vestment buying on the recent advance must have been very
large. It is highly probable that the conservative and slow-going
of the people wlio had money to invest, and who, it may be said,
are in the majority, waited until peace bad actually been ar¬
ranged before making their purchases. They paid rather a
heavy premium for the assurance that tliey might buy in safety,
but if they are satisfied no one else has a reason to be otherwise.
These purchases do not influence the market now, and further
reaction, with advances in spots on new developments, can be
more reasonably expected than anything else. As to the general
situation, that is another thing. Every day makes the outlook
for business better. The talk of enlargements of plants, or the
consolidation of others for more comprehensive operations, that
comes from so many directions, is direct evidence of the hopeful¬
ness and reviving industry and enterprise of the business com¬
munity. Back of this are the good agricultural results of the
yeai-, and a universal feeling that the country is preparing for an
industrial effort that will outdo anything that it has ever done
BUSINESS is encouraged by the Czar's invitation to the
Powers to convoke a Peace Congress, without any regard
to the likelihood of its acceptance, or the probabilities for fail¬
ure or success of the Congress when convened. The reason
why the invitation is looked upon as a favorable factor is that,
as business requires peace for successful operation, and as Rus¬
sia has lately been the power whose policy most threatened its
infraction, a proposal lor disarming coming from that quarter is
naturally taken as an indication of a change of attitude which
precludes danger of war for some years to come, at least. So
business accepts such relief as the proposal gives with thankful¬
ness, and renews its ■efforts, without troubling itself whether
Count Muravieff has by this surprise outdone himself in cyni¬
cism; whether it is offered in full sincerity or not, or whether the
opportuneness of disarmament to the proposer does not taint the
proposition with individual interestedness. As foretold in this
column two weeks ago, the preparations made there for sending
gold to the United States, create no anxiety in London. Rates
for money have stiffened somewhat, a movement that is not re¬
garded with dissatisfaction in financial circles, but otherwise
there is no other effect. The Bank of England makes a strong
showing and the outside demands upon it are not great. Stock
exchange business has everywhere been benefited by the Czar's
message, for the reasons just given. The settlement of the Welsh
coal miners' strike, by the acceptance of a compromise, arranged
between representatives of both sides, removes a protracted ob¬
struction to business. The Italian budget statement, recently
made is an argument of the necessity of disarmament, for Italy
at least. The estimates made at the opening of the financial
year were for a surplus of $1,500,000; the final report shows a de¬
ficiency of $2,500,000, with expenditures of $1,800,000 for public
works included in the estimates not made. Nearly $3,000,000,
not provided for, had to be expended for military movements to
quell the recent popular rising, and the suspension of duties on
wheat, made necessary by the discontent and destitution, are es¬
timated to have cost $2,500,000. While Argentine securities are
strong in the European markets, correspondents on the ground
take a very gloomy view of the financial position of the coun¬
try, based.on the sluggish Irade and the boundary difficulties
with Chili. M. Leroy Beaulieu is urging a partial adoption of
the Cuban debt—that incurred prior to the last rebellion—by the
United States, a suggestion not likely to be adopted, particularly
in view of the unfriendliness of France, which such an arrange¬
ment would most directly benefit, during the war just closed, and
ia view of the fact that this country has demanded no pecuniary
indemnity from Spain. The Vienna bourse has been scared by
tbe collapse of the securities of the Austrian Arms Manufactory,
which appear to have been boomed on fraudulent balance sheets
and the payment of unearned dividends.
WAR TAX RULINGS,
THB following Is a resume of the rulings up to date of In¬
ternal Revenue Commissioner N. B. Scott as to the stamp
tax so far as concerns dealings and dealers in real e&tate:
The exemption granted in the last proviso of Section 17 of the
Act of June 13, 189S, to co-operative building aud loan associa¬
tions, etc., is confined to the stock and bonds issued by the as¬
sociations therein mentioned,and, therefore,does not relieve them
from stamp tax on checks, mortgages, and other instruments
issued by them.—July 8, 1898.
There is no difference in the rate of taxation bel ween that on
a chattel mortgage and on a mortgage of realty.
Upon a mortgage or pledge of real or personal property for a
sum exceeding $1,000 and not exceeding $1,500, a stamp of 25
cents is required, and on each $500 or fracti mal part thereof in
excess of $1,500, 25 cents.
Bach and every assignment of transfer of the mortgage, or the
renewal or continuance of any agreement, or contract, by letter or
otherwise, requires a stamp duty at the same rate as that im¬
posed on the original instrument.—.luly 12, 1898.
Upon each and every assignment of a trust-deed or mortgage a
stamp duty is required at the same rate as that imposed on the
original instrument.—July 12, 1S9S.
The certificates of acknowledgment to deeds, mortgages, or
other legal instrument, require to be stamped with a 10-cent
stamp, as a certificate in addition to the stamp provided by law
for the instrument itself. They are no part of the execution of
the deed or mortgage, and are not covered by the stamp required
upon such deed or mortgage. (This ruling was reversed July 2IS.)
The jurat to an afiidavit does not require to be stamped.
The memorandum on the back of a deed or mortgage made by
a register or recorder that the instrument has been placed on
record is not a subject of taxation,—July 12. 1898.
Any receipt or instrument setting forth any terms of a lease,
must be required to be stamped as a lease, unless there has been
a separate lease made, in the case which has been duly stamped,
in which event the receipt, though containing the terms in ques¬
tion, does not require a stamp. A mere receipt, given under the
terms of a lease duly stamped, does not require a stamp.
A receipt given on or after July 1, 1898, though it contains ref¬
erence to the terms of a lease fully executed before July 1, 1898,
does not require a stamp; but it is advisable in each of these
cases that reference should be made in the receipt to the lease
and to the date of its execution.
There will be no liberal ruling in favor of persons IntereS'ted
in these and other cases under the stamp tax. The construc¬
tion must be broadly in favor of the revenue to prevent evasion.
—July 12, 1898.
No stamp is required on ordinary receipts.
Real estate mortgage notes require to be stamped, in addition
to the stamp placed upon the mortgage.
In cases of loans on real estate, where promissory notes are
given, which are not paid at maturity, but on which an exten¬
sion of time or payment is granted, without the taking of a new
note, every such extension is a renewal of the note within the
meaning of the statute, and the requisite stamp must be affixed
for every such renewal or extension.
Where a bond is given with a guaranty company as surety, the
bond should have, in addition to a 50-cent stamp, as required
under the head of "Bond" in Schedule A., a stamp denoting one-
half of 1 cent on each dollar or fractional part thereof paid to the
principal obligor on the bond as a premium, undar that para¬
graph of Schedule A relating to guaranty companies.
Bonds "required in legal proceedings" are exempt from stamp
tax. They are such as are required in litigation either civil or
criminal cases, such as prosecution bonds, injunction bonds,
bonds to stay proceedings, bonds upon appeal, writs of error,
bonds for costs, and the like; and in criminal cases, recogni¬
zances bonds for appearance, bail bonds, and also bonds in crim¬
inal cases upon appeal, and writs of eiTor, supersedeas bonds, etc.
Bonds given by persons appointed by the court, conditioned for
the faithful performance of the duties of their office or position,
such as receivers, assignees, executors, administrators and guar¬
dians are not exempt, and the stamp tax must be paid thereon.