Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-04-28
URGE THAT TAX MONEYS
Be PLACED IN BANKS
Local Financiers Want Custom Of
Depositing $4,000, 900 With Ma
tional Institutions Continued.
Plea of Chairman Of Clearing House
Communicable Life in Wash
ington Stocks.
BY I. A. FLEMING.

Washington bankers are decidedly in
terested in the decision which the
Treasury Department will make within
the next few days on the question OF
redepositing a large part of the tax
collections for the fiscal years in the
District in the national banks, in
former years.
w. r. Galliher. president of the
American National Bank, is chairman
Of committee appointed by the
Clearing House Association to wait on
the Secretary of the Treasury and pre-
sent the claims of the banks for the
continual ton OF the understanding Gus
tom of depositing 100000 of tax
funds in the District banks. to be re-
paid 90 per cent in July. 20 per cent
in August. and thereafter 10 per cent
q month funds bearing interest at =
per cent and secured by deposits of
securities acceptable to the depart
rent at rs per cent of their market
value.
Owing to the illness of the Secretary
of the Treasury. Mr.. Galliher took the
matter up with Mr.. Malhurn. assistant
secretary, who. in turn. consulted with
MIR. McAdoo on the matter. following
which he wrote to Mr.. Galliher asking
the latter for his views on the PROPOSE
ton and as to whether the money was
actually needed by the banks. etc.
Mr.. Galliher replied at some length.
setting for the facts in the case.
that these funds were strictly District
moneys and, therefore, entirely differ
ent from government deposits; that the
withdrawal of ss.o0o.ooo to s'oooooo
from the banks by the taxpayers of the
District had always been effective in
reducing the available surplus of local
fiscal institutions. and that the rede-
post of 100000 by the Treasury De
partment had been considered an es-
sential relief to the situation.
He also called attention to the fact
that the new plan of assessment was
effective and that this probably would
cause larger taxes while the action of
the government in transferring its
moneys to the federal reserve system.
now fairly under way, was another
reason why the tax funds should be re-
turned to the national banks as usual,
if not in larger proportion. to be with
drawn as the government needs the
cash.
Discussing the matter of actual need
OF surplus funds by banks. Mr.. Galllher
practically admitted that just at this
time there was plethora of cash, but
with government deposits being with
drawn, with the millions of tax money
taken out and the probable betterment
in business. the chances were that the
tax deposits could be used to advan-
tage. Moreover. he called attention to
the fact that the summer months were
not periods of saving on the part of the
people of the District. but of liberal
spending-the vacation season
Treasury Statement.
The condition of the United States
Treasury at the close of business yes
terday was:
Net balance in general fund, $2c, 451,-
1862, total receipts. s2,511,12s; total pay
ments, sS.o94.637.
The deficit this fiscal year is $780,.
e69.515, against a deficit of $32,357.S40
last year, exclusive of Panama canal
and public debt transactions.
Local Securities.
The Washington stock market seems to
be settling down to midsummer dullness
much earlier than usual Not transac-
tion in the leading public utilities stocks
was reported on the session this after
noon. the nominal prices being 80 bid and
90 asked for Railway common: s5E. bid
and sSL4 asked for Railway preferred:
SIS. bid and 81 asked for Capital Trac-
ton, and 691a bid and FOX asked for
Washington Gas shares.
Actual transactions included Lanston
shares at 81, sales Of Capital Traction SIS
at los and Gas SIS at los to 1047s