Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-02
MILLIONS PAID TO
TREASURY IN TAXES
Richmond Reserve Bank Has
Avoided Graduated Dis
count Rates.
BY i. A. FLEMING.

Millions of dollars were added to the
Treasury of the government in the last
few days through the heavy payments
of capital stock taxes. due on or before
July 81
Then. too. there were more millions
from other taxes. the special taxes on
brpkers. pawnbrokers. museums. the
alters. concert halls, bowling alleys etc.
including taxes on pleasure boats.
power yachts. special tax on tobacco
sales, tax on renting automobiles.
Wholesale liquor. o!eomargarine ship
brokers and custom brokers, etc
The capital stock tax applies to every
corporation doing business in the United
States Domestic corporations must pay
II for each $1,000 of capital employed
IN business in excess of $1,000. Foreign
corporations are not given the benefit of
the $4,000 exemption. but pay 81 on
each $1,000 employed---its average cap
ital employed in the transaction of bust
ness in the United States for the year
ended June 80.
There is no way of estimating the
total amount of the taxes due and
collectable July l under the capital
stock and special taxes, but the total
must be very heavy.
Assessor Richards kept open house
at the District building today for
such late corners as wished to file re-
turns of personal property and in
tangible property taxes in order to
avoid the 20 per cent penalty. Taxes
on these returns will be payable next
May.
Avoids Sliding Scnle.
Charles A. Peple, deputy governor
OF the Federal Reserve Bank of Rich
mond. has addressed form letter to
the various banks in the district, in
which he congratulates the banks On
the fact that the Richmond bank has
SO far been able in avoiding the use
of the sliding scale rates-graduate
rates of discounts.
I'm an earnest effort to avoid the
establishment of graded rates in this
District, We have given more than our
customary attention to all applicants for
loans for the past six months
I'VE. are much gratified to be able
to say that up to the present time we
have been in a position to furnish
needed funds to the banks in the
agricultural districts (many Of whom
were previously borrowing very little
or nothing at alO by securing reduc-
tons in the lines of other banks
through the payment or curtail of
loans as they mature. In this way
we have avoided increasing our dis
counts with other federal reserve
banks. And we believe that. if we
can get through this season without
an increase in these discounts. we
will be able to avoid the graduated
rates"
The deputy governor then illus
trates the basic line of loans to which
a specific member bank would be
entitled in case progressive rates
of discount were in force. and makes
comparison with the existing loans
to the bank in question
Bankers are congratulated on their
earnest efforts to cooperate with the
reserve bank, and the banks are fur
Their cautioned that this whole
hearted cooperation is vitality neces-
sary if the situation is to be handled
to the best interests of the district
at large and the bankers of the dis
trict in particular"
Local Securities.
Capital Traction shares were among
the leaders in activity on the local
stock exchange, selling at ssh to IS Il.
Railway common brought 17A and IS.
Railway preferred opened at Sis and
after call eased off to 51E.
A few shares of Lanston sold at II.
Personal Mention.
George Bowie Chapman. manager of
Hartman & Cos, local offices, has re-
turned from Bar Harbor. Me.
Brooke, Stokes & Co., bankers, men,
bers Of the Philadelphia State Ex-
change, have opened local offices at
1874 18th street northwest. II. X
Douglas Peachy and Cough w. Thomp-
son are managers.