Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-09-04
TOTAL BANK DEPOSITS
/ WILL SHOW FAIR GAINS
BY I, A. FLEMING.

A call was made this morning by the
controller Of the currency on all ma
tional banks. and. in the District. or
all banks. for a statement Of the con-
dition of the institutions at the close
of business August 81.
The latest previous call was for June
20. In the interim between the last
call and the call for reports as of Au-
gust 81 the vacation months have
passed. not generally a saving time.
but less generally getaway months
than usual, the call of duty incident
to the conduct of the war keeping
thousands of workers at their desks.
During this interim the national
banks of Washington have paid 40
per cent Of tax deposits back TO the
Treasury Department. calllng Tor
Withdrawal of about $1.600.o00.
The United States Treasury has called
for the repayment OF all liberty loan
funds OH deposit in the banks. further
reducing the credits OF the government
with the banks. and has sold many
Treasury certificates to corporations.
Nevertheless the aggregate statement
of the various institutions when finally
compiled will probably show a satisfac-
tory Increase in deposits.
To the credit side OF the deposit &C,
count must be placed the semi-annual
payments on interest on savings
deposits, the semi-annual and quar-
terly interest and dividend pay.
ments to investors and the savings OF
scriptions to the fourth liberty loan, and
in carrying out the very valuable new
thrift idea generally
The American Security & Trust Co.
with deposits Of s12.S36. 2S4. showed a
4 Trust Co.. deposits. ss.213,215'
gained s4so.274: Union Trust Co. de.
posts. s5.o55.5S4. showed a gain OF
$4,000; the Continental Trust. with
deposits of s3.468.ooo. showed gain
4 Trust Co. with deposits Of $685.
724. made a gain of $361.543.
The Home Savings Bank. with de-
posts of ss.S346s7. made a gain OF
$75o6o6.
These figures would plainly indicate
very satisfactory increase in de-
posits at a time when gains were not
anticipated. despite the heavy with
drawals.
The Money Raising Problem.
The National City Bank of New
York. in it's September circular. has
this to say on the revenue problem:
problem for this fiscal year contem-
plates practically doubling the receipts
from both taxation and loans; that Is
10 to BY raise and
nearly $4,000. 100000 BY taxation and
$4,000. 100000 by loans last year. The
committee will probably bring in the
$4,000. 0o0. 900 by taxation; that is COM
paratively easy with first chance at
tant question is in what shape does it
leave the field for the raising Of the
$16.000.o00.000 of loans.
The bill is planned to obtain the
bulk of the new revenue from business
profits and the larger personal incomes
and it is obvious that this is levying
Upon the sources from which bond su b.
past. We shall not argue over the ad-
vantage or propriety of making the
rich pay by taxation instead of by
some persons lay. the chief. emphasis,
but to our view the point of chief i'm
portance is the necessity for raising
s24.000.O00.000 in all. against a little
evidently necessary to tap new sources
of Treasury income. and this is where
the new bill is weak.
THE surplus profits of business and
the surplus incomes Of the rich after the
payment Of taxes have been going into
the bonds and will now be diverted
largely to the other channel. This will
save interest. but does not give the
treasury more money Tor this year
use. The so-called luxury taxes, and
most of the other taxes. are directed at
the same pocketbooks. The levy Of tax
alton ID not broad enough to produce
important revenues from new sources,
and il the bill becomes a law in this
form the undertaking to raise s24 .000.-
600. 900 in the year will depend for sue
cess upon a great increase Of bond sub
scriptions from people who are practi-
cally exempt from taxation.
THE policy OF the bill reflects the
fallacy that the incomes of the rich il
converted to public uses will solve all
problems. The trouble with this idea is
that the incomes of the rich in the main
are already applied to public uses: in
normal times they go back into industry
and at this time they are largely needed
there. Ii all the money which the rich
spend on themselves was turned into
the Treasury. and all Of the man. power
which the rich employ for their own
private support and pleasure was re-
leased to the government the results
would be insignificant compared with
the governments needs at this time
Partial Payment Plan.
Members of the District Bankers
Association this morning received the
full report Of the committee appoint
ed to consider the best plan for the
handling and recording OF INSTALL
ment purchases of fourth liberty loan
bonds in denominations of $50 and