Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-10-31
|NCOME: TAX
JARS LOCAL
BANKERS
Face Problem in Teaching Patrons
New System, Which Levies on
Interest Due Saturday,

The first effect of the income tax
touching the coupons and registered
interest due November 1. was noted
In Atlanta Friday in the number and
gravity of the conferences in various
banks, and particularly in the meet
ing Of Special Clearing House Com
mittee, headed by Robert F. Maddox
Of the American National Bank.
The bankers were in a flurry-at
least, as nearly in a furry as bankers
ever get The confusion spread also
to other investment firms and centers,
but most of the interest conferred IN
the meeting OF the Clearing House
Committee. which would settle a uni
form plan by which the Atlanta banks
would cope with the situation.
1T means a huge muddle OF ac-
counting and bookkeeping" Mr.. Mad
doX said. There will be a great bur
den of extra work in the banks, and
lot OF bookkeeping among the in
vestors-a new kind OF bookkeeping
too
All Kinds Of Incomes Included.
The income tax OF itself is not hard
to understand, and to a certain class
of citizens does not sound unpleas-
antly. It is a tax OF I per cent on
the income of any person who enjoys
a yearly revenue Of $4,000. Cor more)
II single, and OF $4,000 Cor more) IL
married
If the person, single or married, en-
Joys less than the prescribed limits,
he Cor she) does not figure in the de-
signs of the government.
And It means any and all income
from whatever source" Mr.. Maddox
said. Salary, bonds rentals-why, if
a real estate dealer whose usual in
come is only couple of thousand a
year, happens to turn up a trade by
which he makes say. SIS 1000, he's liza
BILE in that fiscal year to the income
tax, though he never made that much
before and may never make it again"
Informing Customers.
But the situation that confronts the
clearing house Is largely one of ac-
quainting the customers OF its mem
bers with the new legislation, which
goes into effect on all the coupons
clipped November /.
Mr. Maddox's committee met at
noon Friday, and devoted the better
part of an hour TO methods of con-
veying to a host OF banking connec-
tons and customers the exactions Of
the tax.
1t was decided to mail out circular
that hereafter must be attached 70
every single coupon presented to a
bank for payment.
The idea" MIR, Maddox said, "ls
that the Government win tax the
income at its source. Thus the cor
poration Issuing bonds. f,r instance,
must show on every coupon from
those bonds a certificate of owner
ship, duly made out by the owner,
stating If he is exempt or liable to the
tax
II liable, the bank handling the cou-
non deducts the l per cent for the
Government.
Called Burden to Banks.
IF exempt by reason Of not having
an income large enough TO be taxable
the l per cent Is paid by the corpo-
ration, and the certificate admits the
payment Of face value by the bank to
the coupon holder"
The whole business, Mr.. MADDOX
said, would impose great burden IN
the banks. which may have to open
special departments to handle the
rush OF coupons about January 1 of
each year when the bulk of coupons
are payable.
July | also will be a busy date,
also March |, and in fact, the first
OF every month will take It's toll o.:
labor and ] per cent revenue from
the hitherto delightful and luxurious
pssstims Of coupon clipping.