The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-06-25
The Banker and the
Poor Widow
Editor of The Virginian:

Sir.-Some days ago In a communication
called attention to the fact that nearly all cti
zens OF the State who do business of any kind
are required to pay license tax to the State
for this privilege, I spoke Of the license tax
paid by the boarding house keeper and stated
that no license tax was paid by banks. COM
pared the business done by two widows who
run boarding houses in my home town to the
business done by the two banks in the same
town. The comparison showed that II the banks
were required to pay license tax to the State
in proportion to the license tax imposed on the
boarding house keeper that the banks of this
town would have to pay several thousand dollars
as a license tax / stated that in all probability
like conditions obtained in all other towns and
cities of this State, and asked the question,
Why should not business institution organized
by who pool their money pay license
tax in proportion to the poor widow who has no
money, but Is working for honest llving?"
/ further asked If banks pay any income tax.
Mr.. H. l.. Eley, of CORTLAND in your issue of
June goth, answers by saying that it is true
that banks are not required to pay license
tax and informs us that banks are not organ
ICED alone profit producers for the investors
but for the public benefit well. and there
fore should not pay license tax Did Mr.. Eley
stop to think about the public benefit of the
boarding house, the dental office, the grocery
and host of other businesses for which Ii
cense tax is required? Was Mr.. Eley ever hun
cry when out of reach of home and friends. or
did he have good, sound of the
ltoothache? If so. and he found food at the
boarding house and got relief at the dental office,
he should have equal appreciation of the
services rendered by these licensed businesses
as that rendered by his bank in cashing check
or dscounting a note. All receive from him
compensation for services rendered, and all are
public benefits. Why should the bank which
makes $4,000 profits in its business while the
boarding house keeper makes s10o. go scot
free OF license tax, while $500 is charged
lagainst the boarding house keeper? Mr.. Eley
will admit that his reasoning above rected is
not satisfactory answer.
I Mr.. Eley further answers that banks pay in
come tax He stated in his letter that the writer
was familiar with the law relating to tax
on bank stock. and kind enough to advise
him where to go to get information Now he
hxrr
the law requiring an income tax to be paid by
banks,
! Mr. Eley informs us that the State Bank as
isociation is conducting vigorous campaign for
the correction of inequalities in taxation 1t is
to be hoped that they will begin at the license
tax end of the problem. There they will find
THAT common justice demands that banks should
Ipay license tax well other business in
|stitutlons The men who direct the financial
Interests of this State should be broad mi nd ed
enough TO point out determinations for, as
well against, banking institutions when they
seek a revision OF the tax laws.
1t is very easy matter for the bankers of
this or any other State, through their organi-
cations, to make a vigorous campaign for legis-
lative enactment. The banks are we'll organ
ICED, have money at their command, and can
present their case in the best possible light.
The trouble is that our bank men. like Mr. Eley,
do not look at the proposition from the other
side. All of them Will readily admit that
there is no reason why banks should not pay
a license tax for the privilege of doing business
just others pay it. Mr.. Eley quotes from a
little booklet which, he states, gotten out
by the taxation committee Of the Virginia
Bankers association. This booklet opens up
as follows: Willing to pay their proper taxes
and asking only the justice due every citizen, do
the bank shareholders get it?' Well II the
banks are asking the justice due every citizen,
this taxation committee should say to the gem
eral assembly of Virginia: We think 1t right
for the banking institutions of the State to pay
a license for the privilege of doing business If
other citizens of the State are required to pay
for such privileges Why does this committee
not call attention the fact that there are good
women. but poor, within the bounds Of this State
who are paying s250b per year license tax for
the privilege of making living by running
boarding houses; and further call attention to
the fact that If the banking institutions of the
State required to pay license tax in
proportion, that the State would get hundreds
tot thousands Of dollars which go into the
pockets of men of means by reason Of this dis
elimination under license tax laws. 1t will
he observed by those who read these communi-
cations that the writer has not touched on the
general laws in reference to banks. MIR.
Eley informs the writer from whom information
may be had. The writer has different source
from which ~he-Eats~ his information and~yyft
discuss this feature in later communication
Will Mr.. Eley give the Information as to the
income tax paid by banks?
Q. c. RUCKER.
Bedford City, Va June 23d
1