At the present time the United States collects a tax upon all bonds at the rate of five cents for each $100. This tax is paid by the borrower who must affix to the bond and cancel proper internal revenue stamps for the appropriate amount. Bonds are personal property and taxable as such. In many States, including New York, this tax is not levied and collected annually, but is satisfied by the payment at the time the mortgage is recorded, of a certain percentage of the amount of the loan. In New York the rate is one-half of one per cent of the principal amount. In theory this tax is upon the lender; upon his personal property, the bond. Actually the law works out quite differently, as in nearly all cases the borrower is compelled to pay the amount of the tax as one of the expenses of procuring the loan.