The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-12-18
FINANCE COMMITTEE
WILL FAVOR REPEAL
BANK DEPOSIT TAX
Will Use Every Endeavor to
Get Emergency Bill Through
General Assembly. Many
Bankers Appear.
State That Repeal of the Tax
Suggested to Them by
Many of Their Patrons and
Bill is Not Chiefly for
Bankers.

Members of the senate finance com
mittee engaged In drafting the State
appropriation bill In advance of the
legislature, which assemblies next
month, went on record last night
unanimously In favor of the repeal OF
the $1.75 tax on banks deposits and
pledged themselves to use every en-
deayor 70 get bill through the gen
eral assembly before the first OF
February, Hs an emergency act
with that end In view.
The committeeman recorded them
selves to this effect after hearing talks
from several representatives or bank
ing interests. who made Ii clear that
the present tax. while Ineffective 10
large extent, is working "a great
hardship on the banks by causing
millions of dollars to be withdrawn by
depositors who object to being as
sessed at such high rate compared
with the rate they receive on their
money.
Proposes Nominal Tax.
In lieu OF the prevailing tax law
relative to deposits. George Bryan, Of
Richmond. attorney for the State
Bankers association, proposed that
nominal tax OF two cents on the 800
he imposed In such instances. He
then read the text of the bill. which.
he said. would be introduced TO
remedy the matter. The bill follows:
Il. Be It enacted by the general
assembly OF Virginia that in pursu-
ance OF the provisions Of section one
hundred and sixty-nine of the con-
-stl.A.iea- at Virginia money-on-de de-
post with any bank or other cor
poratien or firm or person Is hereby
segregated 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.
"a The total rate OF such segre-
gated taxation on such money on de-
post shall be two cents on the hum
dred dollars. one-haif of the proceeds
OF which shall be applied to the sup
port of the government. one-fourth
TO the support Of the public free
schools OF the State and one-fourth to
the payment of pensions.
-. All acts and parts of acts in
conflict herewith are hereby repealed.
~. The collection OF current reve-
nue. being affected, an emergency is
declared to exist. and this act shall be
in force from it's passage.
Lost 5000, 900.
Arthur L. warthen. president of the
National Bank Of Front Royal. and
first addressed the committee on the
subject. In urging adjustment OF
the tax. he pointed out that banks in
Virginia lost more than $4,000, goo In
deposits as q result of Withdrawals IN
cident to the activities of the au-
thorities In endeavoring to collect the
tax.
He was followed by Mr.. Bryan. who
stressed the importance OF repeating
ha In n
withdrawn. he said, never comes
back 1t goes into peoples pockets
bur most frequently in goes into
banks in neighbor!ng States, where
there Is no such law. He pictured the
uneasiness displayed by thousands of
depositors during the assessment
period last winter, and he said that
the same state of unrest on their part
was again in evidence.
While Mr.. Bryan was talking
Chairman Echols took occasion to
interject a remark to the effect that
he had been reliably informed that
fully 100000 were withdrawn from
period. and he had also been inform
ed that half OF this sum had never
been put back in bank.
Taxes Evaded.
Continuing. Mr.. Bryan said that the
records show that barely one-twenty-
NTH Of the deposits are returned for
taxation. even when II remains In the
bank. the depositor, feeling that an
injustice IL being worked when he is
required to pay In taxes, In most IN.
stances. more than half OF what he
gets In the way Of interest.
In closing, the attorney doubted
whether any other State in the Union
imposed such an unreasonable tax.
Thomas Branch McAdams. cashier
OF the Merchants National bank.
pointed out that the bill calling for
repeal OF the tax did not originate
with the bankers He said 1t was
born OF numerous letters no had re-
cived from bank patrons throughout
the State while he was president OF
the State Bankers association. These
prayed earnestly for relief from tho
tax, he said.
II the committee would endorse the
bin and use its influence to get 1t
through as an emergency measure. he
was confident much. IL not all. OF tho
prevalent fear would be dissipated.
The situation last winter. he said, was
four times worse than ever before.
and things would certainly not inn
prove unless something urgent were
done.
O. J. Sands, president OF the
American National Bank and chair
man Of the taxation committee OF
the State Bankers association. spoke
along the same lines, urging prompt
and favorable action on the part of
the committee. The tax as it stands
al present. he said. affects COM
mercial interests generally and the
individual In particular and 1t was
CONTINUED on Fifth page.l