The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-18
EVERY PROSPECT
OF AN ADJUSTMENT
Question of Tax OH Bank De-
posts Will Be Settled Within
Next Few Days.
WEAVER AND STUART CONFER
Governor-Elect Fully in Accord
With Efforts to Relieve
Present Burden.
AND STUART CONFER

There is every prospect OF = settle-
nent OF tho differences between Gov
ernor- Elect Henry c. Stuart and tho
General Assembly as to the Weaver bill
reducing tho tax on deposits In bank
The House Finance Committee will
meet Tomorrow morning at 10 o'clock
to take up the matter, and II Is prob
able that Mr.. Stuart Will be present
Chairman Aubrey G.. Weaver patron of
the bill, said yesterday that he had u
long conference with MIR. stuart before
he left for Lynchburg, and that there
was every prospect OF an adjustment
which would permit OF prompt legisia-
tion.
Mr.. Stuart" explained Mr.. Weaver,
lis fully In accord with the efforts
TO relieve the burden now resting on
bank depositors, and he agrees that 1t
should be made an emergency measure
and made effective before the taxing
date on February 1. His own express
sion was that tho only question be-
tween US Is one of flgures-the actual
rate of taxation, on which l am sure
VIC can speedily agree"
The Supreme Court has decided that
money In bank Is property. Under
the present law therefore. IT Is subject
to taxation by the State at 30 cents
on 500. and to additional tax In the
counties and cities, the rate In Rich
Inond, city and state, being si.75 on
500.
The Weaver bin, designed TO prevent
the wholesale withdrawals OF money
from bank at the annual taxing period
and to check the movement of money
out OF the state, segregates bank de-
posits as a subject for taxation by the
State only, forbidding It's taxation by
counties and cities. and proceeds to
lay a State rate of , cents on 500, re-
garded ms n mere nominal compliance
.t-it 7, I'm to-, flar
all property is liable to taxation.
AR. Stuart opposes the practical
exemption Of this class OF property
from taxation, but. before leaving to
attend the Carter Glass dinner In
Lynchburg yesterday. he gave assur-
anccs that his differences with the
committee were on tho point OF adj
justment.
Stuart FavOrs Reduction.
He heartily favors sweeping reduc-
ton IN the tnX rate on bank deposits
and agrees that Il should be immedi-
ate, and that tho bill should be an
emergency measure. designed to take
effect before February L. He Insists
however that, In his opinion. the rate
OF taxation should be sufficient to be
real tax, dignifying, and at the same
time levying on this class of property
FOR the support OF the government, and
that II should be large enough to DO
revenue producer. When Mr.. Stuart
returns from Lynchburg to-day, fur
ther conferences will be held, with n
view TO agreement on the terms OF the
measure. 1t is entirely unlikely. there
fore, that any tax will be levied this
year on bank deposits which will be a
burden TO depositors. or which would
form sufficient incentive To dcpositors
! TO draw out their money.
Neither Will this form OF property
be made exempt from taxation, and so
leave tho loophole pointed out by Mr.
stuart, by which tax dodgers might
convert their Investments into bank de-
posts over the annual taxing period.
Members of the committee express the
opinion that with a proper compromise
amount fixed for the tax on bank do
posts, n much more complete return
VIII be made. Under present conditions
people simply cvade the law and do
not return their bank deposits for taxa
tion, the total amount returned In Vir-
ginia last year having been less than
the total of deposits in single banks in
Richmond
Realizing the burden on tax OF sl.75
on 500, where the average bank in.
teresi Is only So on the siOO, commits
siohers OF the revenue and grand juries
have winked at the omission AS a
matter OF fact, therefore, the State de-
riVes little Income, and the banks are
severely strained by tho withdrawals
OF money just before the tax date.
Chairman Weaver and Auditor Moore
are both of the opinion that with a
more equitable rate. properly enforced.
more complete return OF the amounts
In bank can be secured, and the State
in the end reap a larger return than it
does at present, with the burden OF
taxation more evenly distributed.