dollars, and imprisoned not less than six months nor more than three years.

See Sec. 3392 for provisions in regard to imported cigarettes. Also, same section for requirements as to packing both cigars and cigarettes.

As to packing, stamping, and marking imported cigars, Sec. 2804 R. S., as amended by Sec. 26, act Aug. 28, 1894, is as follows:

SEC. 26. That section twenty-eight hundred and four of the Revised Statutes be amended so as to read:

"SEC. 2804. No cigars shall be imported unless the same are packed in boxes of not more than five hundred cigars in each box; and no entry of any imported cigars shall be allowed of less quantity than three thousand in a single package; and all cigars on importation shall be placed in public store or bonded warehouse, and shall not be removed therefrom until the same shall have been inspected and a stamp affixed to each box indicating such inspection, and also a serial number to be recorded in the custom-house. And the Secretary of the Treasury is hereby authorized to provide the requisite stamps, and to make all necessary regulations for carrying the above provisions of law into effect."

after April 1,

1869.

Selling imported cigars not packed and

SEC. 3403. All cigars of every description, on hand Cigars on hand after the first day of April, eighteen hundred and sixty-nine, shall be taken to have been either manufactured or imported after the passage of the internal revenue act of July twentieth, eighteen hundred and sixty-eight, and shall be stamped accordingly. Every person who sells or offers for sale any imported cigars, or cigars purporting or claimed to have been imported, not put up in packages and stamped as provided by this chapter, shall be fined not less than five hundred dollars nor more than five thousand dollars, and be

stamped as required by law; penalty.

imprisoned not less than six months nor more than two years.

SEC. 3404. Every person who purchases or receives for sale any cigars which have not been Purchasing branded or stamped according to law, shall cigars not be liable to a penalty of fifty dollars for each stamped.

such offense.

SEC. 3405. [Repealed.]

branded or

This section provided a penalty for purchasing cigars from a manufacturer who had not paid the special tax. The act of October 1, 1890, by repealing this special tax, virtually repealed this section.

Stamps on

emptied cigaratroyed; pen

boxes to be de

neglect, etc.

SEC. 3406. Whenever any stamped box containing cigars, cheroots, or cigarettes, is emptied, it shall be the duty of the person in whose hands the same is to destroy utterly the stamps thereon. And any person who willfully neglects or refuses so to do shall, for each such offense, be fined not exceeding fifty dollars and imprisoned not less than ten days nor more than six months. And any person who fraudulently gives away or accepts from another, or who sells, buys, or uses for packing cigars, cheroots, or cigarettes, any such of emptied stamped box, shall for each such offense be fined not exceeding one hundred dollars and be imprisoned not more than one year. Any revenue officer may destroy any emptied cigar-box upon which a cigar stamp is found.

stamped cigar

box.

CHAPTER EIGHT.

BANKS AND BANKERS.

Sec.

Sec.

3407. Definition of words "bank" and [3413 a.] Tax on certain parties' own

"banker."

3408. Tax on circulation of banks and

bankers.

3409. Taxes, when payable; how cal

culated.

notes used for circulation and paid out by them.

[3413 b.] Tax on circulation of other than national banks used and paid out.

[3409 a.] When banks are insolvent or [3413 c.] Return of amounts and pay

Definition of words

"banker."

3417.

State banks converted into national banks; returns, how made.

Certain provisions of this chap

ter not to apply to national banks.

SEC. 3407. Every incorporated or other bank, and· every person, firm, or company having a bank and place of business 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.

The requisites of a bank or banker under this section pointed out. Selden v. Equitable Trust Company, 4 Otto, 419.

SEC. 3408, as amended by Sec. 1, act March 3, 1883 (22 Stat. 488). There shall be levied, collected, and paid, as hereafter provided:

culation.

Third. A tax of one twelfth of one per centum each month upon the average amount of circula- Tax on cirtion 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, association, corporation, company, or person.

of branch

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

The taxes on deposits and capital of banks and bankers were repealed by the act of March 3, 1883.

The tax on circulation of the national banks is paid to the treasurer of the United States. See Sec. 5214, as amended; also Sec. 3417.

Certificates of indebtedness not taxable as circulation under the third clause of Sec. 3408 R. S. unless they were calculated or intended to circulate or be used as money. United States v. Wilson, 16 Otto, 620.

SEC. 3409. The taxes provided in the preceding section shall be paid semi-annually, on the Taxes, when first day of January and the first day of payable.

How calculated.

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.

Case of in

solvency or bankruptcy

of banks.

[SEC. 3409 a.] Sec. 22, act March 1, 1879. That whenever and after any bank has ceased to do business by reason of insolvency or bankruptcy, no tax shall be assessed or collected, or paid into the Treasury of the United States, on account of such bank, which shall diminish the assets thereof necessary for the full payment of all its depositors; and such tax shall be abated from such national banks as are found by the Comptroller of the Currency to be insolvent; and the Commissioner of Internal Revenue, when the facts shall so appear to him, is authorized to remit so much of said tax against insolvent State and savings banks as shall be found to affect the claims of their depositors.

SEC. 3410. [Related to the capital of banks and has become obsolete by repeal of the tax on bank capital.] See Sec. 1, act March 3, 1883 (22 Stat. 488).

Circulation,

when exempt

SEC. 3411. Whenever the outstanding circulation of any bank, association, corporation, company, ed from tax. 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.