The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-12-18
Senate Finance Commit
tee Will Urge Repeal
of Obsolete Law.
MONEY
FROM VIRGINIA,
Bankers Show Importance of
Prompt Action to Prevent
Withdrawals on February /,
Approval Being Given Plan
for Relief-Put Through
as Emergency Measure.

unanimous approval was given by.
the Senate Finance COMMITTEES last
night to a bill practically aboliship..
the present heavy tax on deposits i'm
banks, which it was stated by members
of the Virginia Bankers Association
mas caused the withdrawal from banks
In this State of millions of dollars for
deposit elsewhere. To meet constitu-
tional objections, tho bill recommended
provides for the segregation of this
subject OF taxation TO the state alone
forbiddinS its taxation by counties or
cities, and then imposes only n nominal
tax on behalf of the State. That LITTLE
actual loss will bc suffered bv eitber
the state or the cities where the banks
are located is shown by the fact ,bat
Of the Sl,o,O0o.OOO of money in hanI-
less than 100000 was returncd fo,,
taxation o'
Feeling Effect of Withdrawal
me recent efforts of grand juries.
HoWc'cr' TO discover omitted taxes al
most caused IA panic among small de-
positors, and already il was asserted
banks all over the State are feeling tho
cHectS OF Withdrawals. 1t is the pur-
pose OF inc committee to have the bill
inauc an emergency measure for irimc-
Assembly meets on January II, and al
ready, IT was stated, more than Is per
cent OF the members have pledged their
support To its immediate passage. in
order that 1t may take effect before
February THE day on which animal
taxes on money in bank are levied.
y draft of the proposed bill pre
pared by George Bryan, attorney for
the Virginia Bankers Association. was
read. Chairman Echols stated that it
was desired to have an immediate and
pubic expression of opinion from the
committee as to the general purpose
OF the bill. and after discussion. tho
committee voted unanimously in its
favor.
Text OF the Bill.
The text of the bill follows:
y bill to provide for the segregation
OF the tax upon money on deposit and
to make 1t liable to taxation by the
state alone and to fix the rate of such
taxation.
/. Be 1t enacted by the General AS
sembly of Virginia that. In pursuance
OF the provisions of section lG9 OF tho
Constitution OF Virginia, money on de-
post with any bank, or other CORPORA
ton or firm or person. is hereby seq
reGated and made subject OF taxation
by the State of Virginia only. and shall
not be liable to taxation by any OF the
cities or counties OF the State
,. The total rate OF such segregated
taxation on such money on deposit
shall be cents on the 500, one-half
OF the proceeds OF which shall be APP
piled to the support OF the government
one fourth TO the support OF the pub
lic free schools OF the State and one
fourth To tho payment Of pensions
8. All acts and parts OF acts In con-
llct herewith are hereby repealed
!. The collection OF current revenue
being affected, an emergency is de-
clared TO exist. and this act shall be
IN force from its passage.
bankers Defer Other Claims.
Arthur l.. Warthen, president of tho
Front Royal National Bank, led the
delegation which presented the sUs
ject ilc was accompanied by G%cr.e
Bryan. attorney for the Virginia sank
ers' Association; Thomas Branch Me-
Adams. cashier of the Merchants Ma
tionai Bank. and O. J. Sands. president
OF the American National Bank. The
Bankers Association had for some
time ii was explained. thought that
the tax on bank stocks was ncquitable
but this matter Of deposits was so
much more urgent, and had such an
immediate and definite bearing OH tho
commercial welfare OF the State, that
IL had been decided TO drop all other
appeals for relief and centre on this
one matter. Mr.. Sands. chairman OF
the taxation committee OF the Virginia
bankers Association, explained tho
matter very frankly.
The old Auditor" he said, looked
At the spirit rather than the letter of
the law, and never made any effort to
collect this tax. 1t has been on the
statute books for years, and we never
had any complaints. no attempt was
made TO enforce il.
New EfOrt To Enforce Old Law
The new auditor. Mr.. Moore who is
doing Il very effective work for the
state. evidently believes that the best
way TO get bad law repealed is TO
enforce 1t. SO he called Il TO the at
tcntion OF grand juries all over the
State last year The net result is that
with Richmond people who make re-
turn OF their money In bank the State
and city taxes amount TO 81 per
cent, while the interest on savings
funds only amounts 10 per cent. We
are not asking this for the banks. Tho
tax doesn't fall on us but on our de-
positors. But last year, when it got
about that money in bank was prop
erty. and was subject TO tax as prop
erty. at 50 cents Tor the State, and
Sl.40 for the city. on each 800 OF
value, we had millions of dollars OF
Withdrawals. This year we are pro-
pared to meet any demand that may
come The banks OF Richmond have
millions OF dollars piled In their vaults
for those dcpositors who wish TO draw
il out before the nrst of February. For
months past we have been unwilling
to make loans that would extend over
February /. because we knew IL this
tax were imposed. the people would
take their money out We have tho
money. II our depositors want IL. but
tho real trouble is that III pilnR UP ALI
this idle money. we are withholding
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