The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-25
TRYING TO REACH
COMPROMISE ON
MONEY TAXATION.
Emergency Clause Put
Back by House Into
Pending Bill.
20-CENT RATE ON
$500 is PROPOSED
Amendments Make New Law
Apply to All Money Property.
Whether in Bank, in Private
Safes or Stockings, or
Deposited in Other
States.

While no final vote was reached, the
House OF Delegates yesterday moved
steadily toward a compromise settle
mont OF the question of tax on bank
deposits. Amendments were adopted
which go far toward carrying out the
contention Of Governor Elect Stuart
that property OF this sort should not
be made exempt from taxation, and
also that the relief desired by tho
bankers Of tho State be granted In such
form that 1t will be effective before
February 1, the annual taxing date. A
point Of difference on which no test vote
has yet been taken is on the question
of taxing deposits at their source.
that Is to say, having the banks pay
on the total OF their deposits and
charge tho amount pro rata to de-
positors.
1t is conceded that IL this Is ad-
mitted, the State will reap larger re-
turns from very low rate than it
formerly did. whom only small pro-
portion OF the money in bank was re-
turned for taxation. Although bank
ers vigorously oppose this step as cal
culated to drive money from tho State,
1t Is admitted that. since It guarantees
TO each depositor the secrecy and con-
fidential nature OF his bank account, it
is preferable to having the Commits
sioner of Revenue or occasional grand
juries empowered to examine tho books
OF the banks to determine whether In
divfduais have made proper returns.
Jordan Substitute Pending,
with tho Jordan substitute. favored
by Mr. Stuart. still pending, the House
adjourned until tomorrow at 12. when
the. bill comes up as the first matter
on the calendar, and will probably be
disposed OF along some of tho lines
or compromise ALREADY suggested.
Tho rensertion OF the emergency
clause, which had been stricken out on
the preceding day. was taken to mean
mat whatever may be the final agree
ment as to the terms OF the bill, prac-
tically all parties are in accord with
the Idea that 1t should be made an
emergency matter, and be on the stat
uto books as early this week es pos-
sible. to prevent Withdrawals of money
over the taxing period.
simple amendment adopted yester-4
day will go far to check this. even
though the bill should not take ef-
rect Tor some time 1t was the inser-
ton of the words 'or otherwise after
money on deposit" The man who has
property In the shape OF money must
pay taxes on II ut the rate to be agreed
upon. whether that money be in bank
In this State. in his private safe. hid
in an old stocking. or deposited in
some other State. The mere fact OF
taking the money out OF bank will not
legally or morally enable any citizen
10 escape giving 1t in for taxation as
property, as 1t is still his property.
whether 1T be deposited in a Virginia
bank or In bank elsewhere.
/ weaver Proposes Compromise.
The House was opened with prayer
led by Rev. j. B. Winn. After the
mr. al ,inar rot.-
came UP as unfinished business. Mr..
Weaver, the patron of the bill, which.
as reported by the House Finance Com
mtttee, made the rate OF taxation on
money 10 cents on 500 and segregated
II to the State alone, forbidding the
taxation OF this form OF property by
counties or cities. said that he was
still firm In his conviction that there
should be only nominal tax on this
ut Is evident" he said. that we
cannot get all we want. But we will
yield something rather than defeat
Legislation that all OF us know to be
right and proper. The opposition can
vote as will enable 1t to take effect
ut once. We admit that we cannot pass
10-cent ratio by anything like four
firths vote. So ! propose that you
join with US In motion to recon
slider the vote by which the emergency
of offering Il 20-cent compromise, but
emitting the plan OF taxation at the
source"
Mr.. oliver wanted the additional 10
cents TO go to the counties and cities.
1t was unfair. he held, to segregate a
tax to the State alone, without giving
the counties and cities some subject of
taxation In return. 1t was held that
that could not be done under the pend
Ing bill, but 1T was agreed that the ad r
ditional 10 cents could be specified as
for the public free schools, to be APP
portioned to tho counties and cities.
Mr.. Weaver said he did not care where
the money went so long as the mem
bers got together and took some sane
and prompt action.
Hard to Keep Up With.
IF | had to keep up with the gsn-
tlemen who represent these bankers,
would not know where we stood" said
Mr.. Jordan. First they said they
wanted S6-cent rate, and they pub
lished a pamphlet. giving reasons why
that rate would bring about great pros
perity for the banks. They sent men
all over the State to advocate tho So
cent rate. Then we como down here
and find them advocating 3-cent rate.
Then the bill comes in for a 1o-cene
cent. and now they jump to 30 cents,
and each ono, they say, Is the abso-
lutely fair and Just rate.
THE ascent rate was not my position.
or that of Governor Elect Stuart Wa
wanted the s6-cent rate. "a the bank
ers asked in their circular. but we
agreed to 90 cents as compromise.
Remember that this Is not reduction
from Sc to 25 cents. It Is reduce
ton from $1.75 to 20. and In sonao
places whore the local tax ratio ia
,higheI of moro than that. since there
Is to be no local taxation under this 3
plan. II is an absurdity to levy So
cont ratio Mnless Il IL nctuAllx colI "a