The Birmingham age-herald., 1912-02-06
TOEXEMPT MONEY BOARDED IN BANKS Brooke Defends Provision
 of Revenue Law ITS MANY ADVANTAGES State Examiner Gives His Reasons for Fayoring This Provision as Bene-
 ficial to the Whole
 State

H. Y Brooke, state examiner or puphc accounts and candidate Tor congress man at large, while in Birmingham yes terday. expressed the opinion that one section of the state revenue bill was en- tirely worthy. That section exempts from taxation money hoarded in banks. As Mir
 Brooke aided in framing the bill, the fol- lowing interview will probably be of interest:
 There is much comment on the revenue bill adopted by the last legislature, some of which is not merited., That section, of the revenue laws exempting from taxa ton money on deposit in bank IS the best feature of the law, for the following reasons:
 "The old law taxing money hoarded whether in bank or in safety deposit vaults only brought to the state treasury about 5000 per annum. The present law will ultimately bring in several tunes that amount.
 ''The book value of bank stock is as certained by calculating the capital stock, plus the surplus and undivided profits. A bank makes profit by loaning out the money of the depositors, and when it has an abundance of funds to loan 1t Will necessarily increase it's profits and there by increase the taxable value of bank stock and this will increase the states $ revenue. In our anxiety to collect taxes we should not overlook the fact that other matters are to be considered. Tax assessors have no power 10 go into the affairs of a national bank to ascertain I. oad uua ba de- posit. The state banks would be the only ones to suffer and this would force peo- pls to make deposits exclusively in na- tional banks, which would be very un- fair to our state banks. Again, If 1t were not for the provision exempting money on deposit in banks from taxation, people would patronize postal savings banks
 and thus avoid the tax.
 However, a more potent reason exists, namely, the prevention of scarcity or money at a time when it should be most plentiful in the south. It is well known fact that money is tighter at the time cotton is being marketed than at any other time This may be accounted for by taking into consideration that the farmer sells his cotton and takes the money home where it temporarily passes out of circulation. At the present time bank cashier can inform him that his money, if left in bank, is not subject to taxation, but if it is carried home 1t is taxable The prudent man leaves it in bank The proof of this is found in the fact that bank deposits at the assessing
 time of last year were about 30 per cent greater than they were at the same time year previous.
 This difference in deposits has enabled the banks of this state to help the farm CTS to hold their cotton and to realize difference of about s7.50 per bale in the last sixty days. It does not stop at aiding the farmer, but it aids every business. It has enabled the banks to protect the credit of the state for the past year. It has kept money in large sums from being
 temporarily invested In Alabama bonds and other non-taxable securities by those who would not have paid taxes on the
 same. If a large amount of money is on deposit in a bank about the 18th of Sep tember of each year and the owner wishes to escape paying taxes on it, all that is necessary is for the owner to purchase non-taxable bonds and hold them until after the second day of October. when the bonds can be converted into cash. The wisdom of exempting money deposit- ed in bank will make itself apparent and then we will wonder why we were so
 blind as not to have taken this step sooner"