THE COLONIST. NELSON, THURSDAY, SEPTEMBER 25, 1866. THE PROPOSED NEW STAMP DUTIES.

Colonist, Volume IX, Issue 939, 25 September 1866, Page 2

THE COLONIST. NELSON, THURSDAY, SEPTEMBER 25, 1866. THE PROPOSED NEW STAMP DUTIES.

When the Stamp Duties were proposed for imposition, we stated that trade would be considerably embarrassed by the. system. This will follow of course, but we did not expect to find that, even in a House of Representatives more than ever a run-holder's and wool-grower's hair of legislation, there would be such palpable one-sideness as the proposed schedule of the Stamp Act now before us displays. Marine insurance policies are to bear stamps; minutes or memorandums of agreements, bills of exchange and promissory notes, conveyances of property, receipts for all sums of forty shillings and upwards, bills of lading and masters' or mates' receipts for cargo sent out of the colony, drafts and cheques on bankers, leases, letters of administration to the property of a deceased person ; and deeds of all kinds are to bear stamp duties, except apprenticeship indentures ; and—of all things—mortgages of real estate, and transfers of the same, and, also, all preferable liens under the "Wool and Oil Securities Act, 1858." Now, here again, as is the peculiar character of the mass oi the taxation which proceeds from the Assembly, the landed interest, real property is carefully shielded as far as possible from the operation of the tax. It is true the exemption from stamp duty of deeds of mortgage and discharges thereof will be a small advantage to the owners of small properties, or to those who borrow small amounts on the security of the same; but :.he advantage is very trifling, while to the revenue the loss caused by such an exemption is very great, and the saving to the richer classes equally so. Let us look at its operation for a moment. A man who wishes to borrow only £200 or £300 on security of his property, would have to pay say, twenty or thirty shillings, over and above what it now costs him to execute a deed of mortgage. This sum, which is just alialf per cent., oi ten shillings per £100 more than the preseni expense, would go to the revenue, and as ii is easily collectable cause no extra trouble and would represent, in the mass, a con siderable amount of public income in the course of the year, it seems a great error to exempt mortgages. On the other side, the owner of large tracts of laud, the wealthy runholder who can -borrow largely on his real estate, escapes and causosa proportionate loss to the revenue. -It is true that the small sums of small proprietors escape the duty, bbt the disproportion in favor of the wealthy few, is -very great when the comparison of amounts is taken. Such sums as £20,000 or even £iO,OOO are not uncommon in one mortgage, and it stands to reason, that if short-dated bills, which are based on a system of borrowing in a regular course of trade, are subjected to a rate of stamp duty equal to about a half per cent, per annum, most certainly the system of mortgage ought to be included in the list. Bills of exchange are part of a trader's tools, which he -is allowed to employ in accordance with the extent of credit which he has earned by good tradeainanship. A mortgage is formed over real estate, and if we tax the one and add still further to business annoyances it is not less just that'the other should be similarly taxed. Still more flagrant is the exemption of transactions under the " Wool and Oil

Securities Act, of 1353." This act was

passed in the interests of the sneep-owners and of those who advanced them money on their year's clip, the latter having a preference over other creditors. This, in effect, is a bill having a certain time to run. From this source and from mortgages, a considerable sum might annually be obtained for the exchequer; but, as it is, the largest dealers and the largest transactions escape the new mpost, while the currency of ordinary nisiness is checked and impeded. The Government calculate that the amount to be derived from Stamp Duties will be £50,000, but we fear the actual result will prove to be like that which has been experienced in New South Wales, where the sum realised fell far short of the anticipations of the Government of 1 hat colony. The schedules of Mr. Fitzherbert's resolution in favor of Stamp Duties, a copy, of which we have just received from Wellington, are four in number. Schedule I contains "the Duties on Deeds and other Instruments relating to transactions between living persons." Schedule II contains the Duties on Probates of Wills, and Letters of Administration, distinguishing the duties on estates disposed of by will from those on intestate estates. Schedules 111 and IV contain the rates of Legacy and Succession Duties, on testate and intestate estates. We give a condensed summary of the duties proposed

Agreement, or Minute or Memorandum of Agreement, under hand only, where the matter is of the value of £10 and upwards, a Stamp Duty of Is. is chargeable. Bills of Exchange (Inland), Is. for every £50, or fractional part of £50. Foreign Bills, the same rate, distributed over two -or three, as the case may lie; thus, if there is a set of two Bills of Exchange, the rate is 6d. for each,—if three, 4d. for each bill on every £50 or fractional part of £50. Bills drawn out of the colony, but indorsed or negotiated within the colony, the same rate aa inland Bills. Promissory Notes (othei:

than payable on demand),, not; exceeding £25, 6d., Stamp Duty; exceeding £25, and not exceeding £50, Is.; and so on, Is. t ot every £50, or fractional part of that sum, Promissory Notes, payable on demand, is. sued by any Bank in New Zealand, are exempted from these dutiea, but banks are otherwise chargeable, as will be seen further on.

Bill of Lading, or Eeceipt from the master, mate, or agent of any vessel, for any goods to be sent put of the colony ; for each Bill of Lading or copy thereof, Is.; for each 80. ceipt or copy, Od. This does notihterfere with coastal traffic.

Conveyance of Property (except transfers, otherwise provided for) an ad valorem Stamp Duty of 10s. for every £100 or part of £100 of the purchase price of the property; If the price of the property is under £50, then the Stamp Duty is ss.

Deed of Instrument of any kind not ape. .cifically described, 10s.

Prom this are excepted, as we have already stated, Apprentices and Clerks' Indentures; and "Mortgages, whether affecting real or persoual estate, and transfers and re-convjy. ances and discharges thereof; all preferable loans under " The "Wool and Oil Securities Act, 1858," all Customs Bonds, Administra* tion Bonds, and Bonds on appointment of Special Bailiffs.

Drafts or cheques for payment on demand o" otherwise, one penny each.

Lease or agreement for a lease of yearly rent, £50 and under, 2s. 6d.; and above that sum, ss. for every £100, or part of £100 of | rent.

Policy of insurance of ships, or cargo, or freight, for any period under three mouths, 2s. 6d., and for all other marine policies, la, for each £100, or part of £100.

Promissory notes payable to the hearer on demand issued by any bank or banltiog company at the rate of, for every £100 of the average annual amount of circulation, as certified under the "Bankers Beturns^cfc," £2. This is two per cent, on the i% Zealand circulation of all the banks in tli« colony, and will produce a considerable sum,

Receipts for payments of money of forty shillings and upwards, one penny. The exemptions from this are, money paid to or for the Government; receipts endorsed on duly stamped instruments acknowledging the receipt of the consideration money therein mentioned; and acknowledgements for money deposited in banks. i Transfer of any run.or station held under lease or promise of lease from the Crown, ot of any interest therein, ten shillings for every! £100, or part of £100 of the declared valua thereof. .

Transfer of shares of stock of any compasj or corporation, 2s. 6d. for every £50,0r fractional part of £50. STAMP DUTIES ON PROBATES 03? TVIHS iiYD LETTERS 01? ADMINISTRATION. Testate. IntesWi £ £t Value of effects £100 '.. 1 ••■ H< Above £100 and under £200 2 ... 3( 200 „• „ 300 3 ;.. 411 300 „• „ 400 4 ... 6 ( 400 „■ „ 500.. 5 .... 711 Above 500 ' : 1f • cent. U\)ml . LEGAOr DUTIES. If the legacy be to children and their lineal descei dants,°or for the father or mother, or any lines ancestor of the deceased, £1 per cent on the amoiu! of the legacy if over £20. If under £20, duty i not exigible To brother or sister, or their descendant...£3 fKB To uncle or aunt „ „ ■•'£s J" To grand-uncle or grand-aunt „■■ ...£oY m To persons of remoter relationship, and all stranger in blood W* These duties apply to residiary legatees a well as ordinary legacies. Xhe exeroptioo from the duties are in shares or residue falling to husband or wife of the decease who is not charged.

SUCCESSION DUTIES. TO EEAI ESTATES. 'Ihe rates of duty are precisely the saffl as those above enumerated under the to of legacies. \ Such is the proposed Stamp Act.