AN UNWISE PROCEDURE.
Now, however, Washington is endeavouring to obtain income tax on all profits made on the New York Stock Markets and to that end is calling upon bankers and Stock Exchange !inns to disclose the names of their clients. Needless to say, this is entirely contrary to English procedure where, save under legal compulsion, neither banker nor broker would disclose the name of his client. So far as the English client is concerned, the authorities in America have no jurisdiction over him here and so long as he has no assets on the other side which might be appropriated—though the idea should be unthinkable—by the American authorities, he has nothing to fear. With bankers and brokers the matter is rather different and the American authorities are accompanying their enquiries for the names of clients with the suggestion that, failing the necessary information, it may be necessary to assess the institutions or firms for taxation. Needless to say, the whole procedure is unusual, especially as it is supposed to be retrospective, the claims made being not merely over future transactions but over those extending for some five years back. I doubt very much, however, whether these demands, will ever be pressed because there is little doubt that on balance the American authorities would. lose far more than they might gain. As matters stand at present, the dealings in 'Wall Street, with the commissions paid to brokers there, must bring in a fine revenue to the U.S. Exchequer, but if this question of taxing foreigners were to be pressed, not only would dealings in Wall Street on foreign account tend rapidly to diminish but American houses would probably be opening offices in London with the object of transacting much of the business on the London Stock Exchange.
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