Evening star., 1917-09-16
By I. A. FLEMING.

An effort is being made by members
of liberty bond committees throughout
the country to secure the passage Of
an act making 1t possible for the gov
ernment to finance installment pur-
chases Of bonds by civic employees. Of
hcials and men of the Army and Navy,
through deduction of payments from
monthly or semi monthly salaries.
The banks feel that they have done
their full share when they finance the
purchases Of the rest of installment
buyers and that it would be nothing
of the nations official family cared for
by the nation.
Such a course probably would result
in larger subscriptions to the bonds,
while the payments might be so ar
ranged that the installments would be
less burdensome than the 10 per cent
payments insisted on by the banks.
other than those in clubs, where small
er sums were accepted.
While not complaining, the burden
of the care of installment subscrip-
tions was a very heavy one to the
banks. entailing as they did the en-
ployment of extra labor at a time
when extra labor. or even the normal
supply. is scarce, and for the recurrent
monthly attention to payments.
The liberty loan committee of the
District Bankers Association, COM
posed of John Poole. chairman; Eugene
e. Thompson. secretary; Eugene Allies
and B. F. Saul. will meet on the call
of the chairman in the near future to
take up the problem OF pushing the
next campaign; the committee is in
touch with the publicity bureau of
the bond issue and a number of new
ideas concerning the conduct of the
campaign will be advanced in the i'm
mediate future.
Investment Bankers Fighting.
Representatives of the Investment
will win the fight for collection at
the source" but admit that they may
have to concede the enactment of a
clause to the effect that hereafter
no bonds shall be issued wherein the
mortgage securing the bonds con-
tains a clause providing for the pay
ment of taxes without deduction at the
source"
The matter is a most important one.
the more so since the doubling of the
normal income tax and the reduction OF
the minimum exemptions.
With the normal tax raised to per
cent, the burden to the corporations, II
the collection at the source should be
would be a great relief for the individ-
ual and an added burden on the corpora
ton. the taxes of the latter being fur
ther enlarged by the per cent cor
poration tax. from which no corpora
tions, operating for gain, are exempt.
Excess Profits Tax.
Then, too, there is the excess profits
taxes, so called war profits. but it is
many corporations will be heavily taxed
on excess profits in no way, other than
if at all. due to the war.
The whole tax question is a most
serious one and can not be more fully
upon until such time as the
committee makes it's re-
ports.
The counsel for the Investment Bank
ers' Association makes the statement
that the difference between collection
and information at the source would
mean a gain to corporations of $7.000.-
900 a year, and a like addition to the
burdens of the individuals. With the
normal tax double the financial diner
ence would be double also, $4,000
instead of $7,000,000.
Local Bank Deposits.
May /. 1917, the deposits in the banks
of washington were at the high mark.
close of. business June 20 there was a
falling off Of S2.600,000, due probably to
liberty loan payments.
When the totals of deposits at the
close of September II are made public
they will unauestionably show the larg-
est deposits in the record of the Dis
trict.
1t is generally recognized that many
influences have contributed to the gain;
hundreds Of new people in the city:
every hotel crowded with transients and
more or less permanent guests: millions
and tens Of millions of government
warrants being sent to Washington
banks for collection: accum ulated dlvl-
dend and interest payments, there be-
ing only small investment for the credit
of shareholders and bond owners these
days; increased salaries to government
employees and labor skilled and unskiil-
cd, Red Cross funds and many other
causes.
The following comparisons are inter
esting, showing total deposits OF the
banks on the dates Of the latest calls: