6. Drafts drawn abroad on a foreign drawee with a foreign payee, passing through a bank in the United States in the course of collection unless delivered by an agent of the drawer to an agent of the payee within the United States.

Promissory Notes

The following promissory notes and renewals of the same are included among instruments taxable:

1. Notes given for security only.

2. Notes payable on demand or after date.

3. Promissory notes accompanying mortgages of joint-stock land banks.

4. Promissory notes secured by bonds of the War Finance Corporation.

5. Promissory notes executed and mailed in the United States to a payee in Canada.

6. Extensions or renewals of promissory notes brought about by extension of mortgages by which such notes are secured.

7. Instruments in the form of promissory notes, representing the interest upon promissory notes, not included under (6) below, and either separate from or prepared in a form and for the purpose of being separated from the principal note.

8. Policy loan and premium extension agreements containing an unqualified promise to pay a specified sum of money at a certain date, except where the sole remedy of the payee in case

of non-payment of the premiums or loans is to reduce or cancel the rights of the insured.

The following instruments are exempt: 1. Certificates of deposit.

2. Bank notes issued for circulation.

3. Promissory notes executed and mailed in Canada to a payee within the United States.

4. Promissory notes issued directly by foreign governments and placed in this country for sale.

5. Promissory notes secured by certificates of indebtedness issued by the Director General of Railroads.

6. Coupons and interest notes which are attached to a principal obligation and are substantially repetitions of the promise to pay interest contained in the principal obligation.

7. Promissory notes secured by United States bonds or obligations issued after April 24, 1917 or secured by the pledge of a promissory note which itself is secured by the pledge of such bonds or obligations. Such bonds must have a par value of not less than the amount of such notes to exempt the latter.

Cancellation of Stamps

Any person using or affixing stamps must so deface the same as to render them unfit for further use by writing or stamping his initials and the date thereon with ink, or by

cutting and canceling such stamp with a machine or punch, which will affix the initials and date. The cancellation should not so deface the stamp as to prevent its denomination and genuineness from being readily determined.

In addition to the above, stamps of the value of 10 cents or more must have three parallel incisions made by some sharp instrument lengthwise through the stamp after the same has been attached to the document, except where the stamps are cancelled by perforation.

Use of Cancelled Stamps-Refunds

A stamp affixed to an instrument and cancelled cannot lawfully be removed and attached to another instrument. Refund will be made by the collector of internal revenue for amounts paid for stamps used in excess of requirements, or on instruments not actually effective and for which a substitute is prepared and stamped, or on instruments not subject to tax.