Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1914-01-29
SENATE ACTION
WAS UNANIMOUS
No Voice Raised Against
Lowering Bank Tax to
20 Cents on s100.
GOES TO GOVERNOR.
Emergency Clause Makes Measure
Effective From Time Executives
Signature is Affixed.

Richmond, Va, Jan. 29.-Unari-
nous approval was given by the Ser
ate of Virginia yesterday to the House
bill segregating the tax on money and
fixing the rate Of taxation at 20
cents on 500. The bill, as passed by
both branches, will be enrolled today,
and presented to Governor Mann. As
the Governor personally appeared be-
fore the house committee in favor of
lower tax on bank deposits, and
made strong recommer: alton for a
rate even lower than that named in
the bill in his message to the General
Assembly, ther els little reason to
doubt that the bill, which carries ar
emergency clause giving effect from
its passage, will be law this after
noon.
The final passage of the bill marks
the end Of the most spectacular fight
before the session of the General AS
sembly-a fight in which the leaders
of the House Of Delegates sharply
Disagree, and which was conducted
with ability on both sides. The re-
suit is a compromise measure. The
bankers carry their point for low
tax on this class of property, while
Governor-Elect Stuart, Delegate Jor-
dan and other house leaders through
their vigorous efforts, have secured
an increase from tie purely nominal
rate Of cents, to ten times that
amount, thus greatly increasing the
revenues of the State alone, without
giving counties and cities any subject
of taxation in return. The city of
Richmond, it is said, will loose about
$25, 900 year through It's operations,
b.7t it is believed to have removed all
reason for boarding of money outside
of the banks, or sending it from the
state.
Since 1878 there has been statute
on the books imposing a tax on
money. Practically no money has
been returned for taxation save tidu-
riary accounts, less than S7,0OO,OOO
.ut of a possible S20O,00O,0oO have
;np been returned by the people Of
v;rp;n;a for assessment in 1912. Au
d;tor Moore went into Office sworn to
enforce the law as he found it. His
effort to get the juries to enforce the
law in 1918 as to deposits in banks
resulted in a condition, as the tax
neriod of 1914 approached, which
nrorised heavy Withdrawals. A city
and state tax Of SITS on $40 when
the average saving bank pays only
S3 ON s10O, was believed to be little
short of confscation. 1t is estimated
that s2,0OO,O00 was removed from
Richmond banks last year to escape
nossibility of taxation, and much OF
Il has never returned. As money IN
h,nk is loaned out again for the de-
ve.opment of trai5e and commerce, the
Virginia Bankers Association TOOK
the ground that it was double taxa
ton. and asked for a nominal rate
that would mean a practlcal eNehlp-
ton. =,
While agreeing that the old rate
was prohibitory and against public
nolicy, Governor-Elect Henry c.
Stuart took the ground that when the
Camera, Assembly is about to begin
a definite movement to eq9allze the
burden of taxation, it would not ap-
near to be evidence Of good falth
practically to :, exempt PTS $500, ,ooo'ooo
from any tax. ;:.Sv;i'h Through a5h its influence
the rate was raised frop cents, tlrSj
ito 10 cents as the bin was reported
by the committee; and finally to ~
cents as it finallylrassed! The plan
to collect the tax through the hanSs
was a new idea to Virginia leglsia+
tors having been borrowed from
President Wilson's plan for collectins
the federal income tax, and, while II
received active support Of many
members, it was not atogefnert sur
prising that it failed of passage. -
As the bill will go to the Governor
it provides for the segregation Of
money as subject Of taxation for
the state alone, prohibiting its taxa
ton by counties, cities or school dis.