The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-29
No Voice Raised Against
Lowering Rate to 20
Cents on S100.
MEASURE GOES TO
GOVERNOR TODAY
1t Carries Emergency Clause,
Which Makes It Effective From
Time Signature of Mann Is
Ahixed-Ena bling Act Is
Amended and Re-
ported Adversely.

Unanimous approval was given by
the Senate OF Virginia yesterday to-
the House bill segregating the tax on
money and fixing the rate OF taxation
at 20 cents on siOo The bill as passed
by both branches. will he enrolled to-
day. and presented to Governor Mann.
AS the Governor. personally appeared
before the House committee in favor
of u lower tax on bank deposits, and
made a strong recommendation for Il
rate even lower than that named in
the bill in his message to the General
Assembly. there is little reason to
doubt that the bill, which carries an
emergency clause giving effect from
its passage, will be a law this after
noon.
Is "a Compromise Measure.
The final passage of the bill marks
the end of the most spectacular fight
before this session of the General As
sembly-a fight in which the leaders OF
the House OF Delegates sharply dis
agreed, and which was conducted with
ability on both sides. The result is :.
compromise measure. The bankers
carry their point for II low tax on this
class OF property, while Governor Elecr
stuart. Delegate Jordan and other
rouse leaders, through their vigorous
eHorts, have secured an increase from
the purely nominal rate of = cents, to
ten times that amount, thus greatly
Increasing the revenues Of the State
The bill seGregates the tax to the state
alone. without giving counties and
cities any subject OF taxation i'm re-
turn. The city of Richmond IT is said
VIII lose about $4,000 a year through
It's operations, but il is believed to
have removed all reason for boarding
OF money outside or the banks. or send
ing 1t from the State
Tax Has Never Been Collected
Since 1878 there has been a statute
on the books imposing 4 tax on money
fractically no money has been re-
turned FOR taxation save iduciary ac-
counts. less than sT,OO0,000 out of q
possible Se00,0O0,OO0 having been re-
turned by the people OF Virginia for
assessment in 1912. Auditor Moore
went into office sworn to enforce tho
law as he found it. His efforts to get
grand 1uries to enforce the law in 1919
as to deposits in banks resulted in II
condition, as the taxing period Of 1915
approached, which promised heavy
Withdrawals. 4 city and State tax OF
S1.75 on SlGO when the average saw
lngs bank only pays So on S100, was be-
lieved to be little short of conlisca-
tion. 1t is estimated that $2,O00,00o
was removed from Richmond banks
last year to escape possibility of taxa
w
ed AS money in bank is loaned out
again for the development OF trade and
commerce, the Virginia Bankers Asso-
citation took the ground that it was
double taxation. and asked for nom
inal rate that would mean practical
exemption.
Mr.. Stuart's Position.
While agreeing that the old rate was
prohioitory. and against public policy.
C;overnor-Elect Henry ., Stuart took
the ground hat when the General AS
sembly is about to begin definite
movement TO equalize tho burden OF
taxation. 1t would not appear to ba
evidence OF good faith practically to
exempt s200.000,000 from any tax.
Through his influence the rate was
raised from cents, first to 10 cents
as the bill was reported by committee.
and finally to 20 cents as it finally
passed The plan to collect the tax
through the banks was new idea to
Virginia Legislators. having been bor
rowel from President Wilson'S plan
for collecting the Federal income tax.
and, while it received active support OF
many members, 1t was not altogethes
surprising that it failed of passage.
Taxes Money I'm Out of Bank.
AS the bill will go 10 the Governor
to day. it provides Tor tho segregation
of money n subject OF taxation for
the state alone. prohibiting it's taxa
ton by counties, cities or school dis
tricts. tax rate of 20 cents is laid
for money on deposit with any bank or
other corporation. firm or person. or in
the possession, or under ths control
of the owner. whether such money bo
actually in or out OF the State pro-
vided il belongs to n citizen OF this
State
The belief is expressed that the eN-
ceedingly low rate of s? per $1,000, tho
lowest on any class OF property in Vir-
ginia. will result in much more honest
and general returns OF money in bank
On February ], and that. as a matter
OF fact. the State Will reap at tho
lower rate a larger tax than was col
lected under the old almost prohibitiva
rate. AS compensation to the cities
and counties. the bill provides that one
half OF the total receipts from this
tax shall be apportioned back to the
public frea schools OF the cities and
counties.
The Enabling Act.
The Williams enabling act was re.
ported TO the Senate yesterday by tho
Committee on Privileges and Elections, 4
with amendments, and with the recon-
mendation that it do not pass. 1t will
take its place on the Senate calendar,
and the amendments may be considered
to-day. The CHIEF amendments are
that the ballot In the proposed eIec-
ton on the question OF licensing the b
sale OF liquor, instead of reading "for "
Statewide prohibition" and against
Statewide prohibition," shall read FOR
State wide prohibition and "for local
option" thus putting before the voters
not a wet and dry Issue. but choseo
between the two methods OF resutat-