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stamp: Provided, That playing cards may be removed from Playing cards the place of manufacture for export to a foreign country, cepted.

for export ex. without payment of tax or affixing stamps thereto, under such regulations and the filing of such bonds as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe.

Concerning the exportation without payment of tax of playcards, see Regulations, Series 7, No. 19, revised, and the following supplements :

Supplement No. 1: Relative to the exportation of playing cards.

Supplement No. 2, amending Supplement No. 1: Relative to the exportation of playing cards.

Supplement No. 3 (Oct. 18, 1898): Concerning exportation free of tax of playing cards.

Where a box of playing cards is opened and cards withdrawn, a new stamp must be attixed to the package before its resale. The broken stamp can not protect the package. In sending packs of cards abroad, even as samples, all the provisions of the law and regulations relating to the exportation of playing cards must be complied with, unless tax stamps are affixed to

these packages. (Vol. 2, Treas. Dec. (1899), No. 21669.) SEC. 44. That every manufacturer or maker of playing Penalty for recards who, after the same are so made, and the particulars

of stamp, wrapherein before required as to stamps have been complied with, per, or cover for

the purpose of takes off, removes, or detaches, or causes, or permits, or ovading the tax. suffers to be taken off, or removed, or detached, any stamp, or who uses any stamp, or any wrapper or cover to which any stamp is affixed, to cover any other article or commodity than that originally contained in such wrapper or cover, with such stamp when first used, with the intent to evade the stamp duties, shall, for every such article, respectively, in respect of which any such offense is committed, be subject to a penalty of fifty dollars, to be recovered together with the costs thereupon accruing; and every such article or commodity as aforesaid shall also be forfeited.

SEC. 45. That every maker or manufacturer of playing Penalty for cards who, to evade the tax or duty chargeable thereon, or selline orales Pre

for , . any part thereof, sells, exposes for sale, sends out, removes, moving, or conor delivers any playing cards before the duty thereon has cealing playing been fully paid, by affixing thereon the proper stamp, as tixing the stamp. provided by law, or who, to evade as aforesaid, hides or conceals, or causes to be hidden or concealed, or removes or conveys away, or deposits, or causes to be removed or conveyed away from or deposited in any place, any such article or commodity, shall be subject to a penalty of fifty dollars, together with the forfeiture of any such article or commodity.

SEC. 46. That the tax on playing cards shall be paid by Playing cards the manufacturer thereof. Every person who offers or ex- of domestic

foreign manu. poses for sale playing cards, whether the articles so offered facture shall not or exposed are of foreign manufacture and imported or are

posed for sale of domestic manufacture, shall be deemed the manufacturer without affixing thereof, and subject to all the duties, liabilities, and pen- payment of tax.

stamp denoting alties imposed by law in regard to the sale of domestic articles without the use of the proper stamps denoting the tax paid thereon, and all such articles of foreign manufacture shall, in addition to the import duties imposed on the same, be subject to the stamp tax prescribed in this Act.



be offered or ex. be

SEC. 47. That whenever any article upon which a tax is required to be paid by means of a stamp is sold or removed for sale by the manufacturer thereof, without the use of the proper stamp, in addition to the penalties imposed by law for such sale or removal, it shall be the duty of the Com

missioner of Internal Revenue, within a period of not more Assessment to than two years after such removal or sale, upon such infortwo years in cer- mation as he can obtain, to estimate the amount of the tax tain cases. which has been omitted to be paid, and to make an assess

ment therefor upon the manufacturer or producer of such article. He shall certify such assessment to the collector, who shall immediately demand payment of such tax, and upon the neglect or refusal of payment by such manufacturer or producer, shall proceed to collect the same in the manner provided for the collection of other assessed taxes.

This is a reenactment, without change, of section 3437, Revised Statutes.

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 fiftyfour and not exceeding another fifty-four 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. (40 Int. Rev. Rec., 277.)




Sec. 3407. Definition of words “ bank" and [3413b.] Tax on circulation other than “ banker.”

national banks used and paid 3108 (amended). Tax on circulation of

out. banks and bankers.

[3413c.] Return of amounts and payment 3409. Taxes, when payable; how calcu

of tax. lated.

3414. Banks' and bankers' monthly re3411. Circulation, when exempted from

turns. tax.

3415. In default of return, Commissioner 3412. Tax on notes of persons or State

to estimate, etc. banks used as circulation, etc. 3416. State banks converted into national 3413. Tax on notes of town, city, or mu

banks; returns, bow made. nicipal corporations paid out by 3417. Certain provisions of this chapter banks, etc.

not to apply to national banks. [3413a.] Tax on certain parties' own notes

used for circulation and paid out

by them. SEC. 3407. Every incorporated or other bank, and every Detinition of

" person, firm, or company having a place of business where and " banker." 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.

In regard to special tax imposed on bankers by act of June 13, 1898, see page 133.

Wbo are bankers under this section? (Selden v. Equitable
Trust Company, 94 U.S., 419; 23 Int. Rev. Rec., 171. See note,
p. 133.)

Liability of foreign banks doing business in United States.
Suits to recover taxes on capital employed. (United States r.
Bank of Montreal; 30 Int. Rev. Rec., 310; 21 Fed. Rep., 236.)

See notes under next section.
SEC. 3408. There shall be levied, collected, and paid, as
hereafter provided :


Third. A tax of one-twelfth of one per centum each month Tax on circulaupon 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 obli. gations calculated or intendeủ 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, association, corporation, company, or


On circulation

In the case of banks with branches, the tax herein proof branch banks.

vided 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.)

Congress did not intend that the question of taxation upon capital employed in the business of banking should depend upon the mere vame given to such business, either by those engaged in it or by others. 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 3108, his capital was employed in the business of banking. He brings himself within the rule that Congress prescribed for determining who, for the purposes of the taxation in question, though not necessarily in the commercial sense, were bankers and what was banking business. (Richmond v. Blake (1889), 132 U. S., 592; 36 Int. Rev. Roc., 24.)

The tax on circulation of national banks is paid to the Treasurer of the United States. (9 5214 as amended. See section 3417, p. 337).

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 v. Townsend, collector, 5 Blatch., 315.)

A bank in Canada, which has established a branch in Chicago, must be held to carry on a banking business within the definition of section 3407, it having a place of business where credits were opened by the deposit of money, subject to be paid or remitted upon draft, check, or order, and where bills of exchange were issued and sold.

The meaning and intent of the whole of section 3408 was to assume that the active moneys employed by an incorporated bank were represented by its capital, and that the capital of a branch bank was the amount which was allotted to it, or which it was permitted to use, and the branch, for the purpose of this tax on capital, was deemed a separate entity. (United States v.

Bank of Montreal, 30 Int. Rev. Rec., 310; 21 Fed. Rep., 236.) Taxes,

SEC. 3409. The taxes provided in the preceding section payable.

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

and the first day of July; but the same shall be calcuHow calcu• lated at the rate per month as prescribed by said section, lated.

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 22, act of March 1, 1879 (20 Stat., 327),

and Supplement, R. S., No. 1, p. 243.

SEC. 3411. Whenever the outstanding circulation of any Circulation, bank, association, corporation, company, or person

rewhen exempted

duced 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 Secre


from tax.

tary of the Treasury shall prescribe, it shall be exempt from any tax upon such circulation.

The exempting provision of the first clause of this section, when considered in connection with section 3416, is interpreted as not intended to apply to any national bank except a bank that had been converted from a State bank or banking association into a national bank; and then only to the outstanding

circulation of such State bank or banking association. SEC. 3412. Every national banking association, State Tax on notes of bank, or State banking association, shall pay a tax of ten banks used as cir. per centum on the amount of notes of any person, or of any culation, etc. State bank or State banking association, used for circulation and paid out by them.

The act of March 3, 1875 (18 Stat., 507), provided as follows: “ That the Secretary of the Treasury be, and he is hereby, 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 first, eighteen hundred and seventy-three; and that the provisions of section three thousand four hundred and twelve of the Revised Statutes of the United States shall not be construed in pending cases, except as to national banking associations, to apply to such evidences of indebtedness issued and reissned prior to the passage of this act, but said section shall be construed as applying to such evidences of indebtedness issued after the passage hereof.”

Internal-revenue tax on State banks. (14 Op. Atty. Gen., 98; 16 Int. Rev. Rec., 57.) SEC. 3413. Every national banking association, State Tax ou notes bank, or banker, or association, shall pay a tax of 'ten per

of town, city, or

municipal corpo centum on the amount of notes of any town, city, or munici- rations, paid out

by banks, etc. pal 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 U. S., 1) where the United States sued a national bank for 10 per cent of the notes of the city of Little Rock paid out. See also Deposit Savings Association v. Marks (3 Woods, 553; 23 Int. Rev. Rec., 241).

Section 3583 provides 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.) [SEC. 3413a.] Section 19 of the act of February 8, 1875 (18 Stat., Ten per cent 311). That every person, firm, association other than national tax on parties,

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

(SEC. 3413b.] Section 20 of the act of February 8, 1875. That Ten per cent every such person, firm, association, corporation, State tion of other than bank, or State banking association, and also every national national banka banking association, shall pay a like tax of ten per centum out. 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 effect of the act of February 8, 1875, was to extend sections 3412 and 3413, which included only banks and banking associa

their own notes


tax .

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