Evening star., 1921-11-06
BY WILL p. KENNEDY.

OW much money is there in
- the family sock? That's what
government officials and
members of Congress are
trying to find out. This question has
come up in connection with hearings
before the House post Office commit
tee on Postmaster General Hays pro-
posal to make the postal savings sys-
tenn more attractive. SO as to draw in
this Stacker" money that is now ly-
ing idle and should be at work.
Eugene Meyer. jr.. managing direc-
tor of the War Finance Corporation,
estimates that there is in the sock
something more than a billion dol
lars. Representative Lucien w. Par
somewhat different from that of Post
master General Hays. seeking to
modernize the entire postal savings
system. estimates that there is at
least 100000, 900 in the sock.
1t is pretty accurately determined
that there is several billion dollars
whose activities cannot be traced.
and which ought to be doing an hon.
est days work.
x X X X
Representative Louis T. McFadden
Of Pennsylvania, chairman of the
House committee on banking and cur
rency. points out that much of this
vast Stacker fund is being used for
illegitimate purposes - bootlegging
and covering up large real-estate
deals. SO that they will not have to
pay taxes on the transaction.
Chairman McFadden says that there
is probably more money being used
for illegitimate purposes in the hands
of offenders today than at any period
in the history of our country. He
believes there is less money today
in the family sock-hidden away
under the carpet, in tin cans and
sugar bowls, really hoarded-than
ever before.
In discussing the activities of
"bootleggers." Representative McFad-
den points out that their transac-
tions are carried along on a strictly
cash basis. MY attention was re-
Gently called to the arrest Of one
Of these notorious characters in the
city Of Washington, when $4,000 in
cash was found on his person. The
next day when officers were search
ing the home of one of the boot
logging crowd a bureau drawer was
pulled open, and it was found to be
jammed full of currency which had
been accumulated and hastily hidden.
MY attention was also called to
several large purchases Of liquor. An
volving hundreds of thousands if not
| millions of dollars. Cash was paid
SO that there would be no record OF
| these transactions"
X y X
Chairman McFadden then calls at
tention to the fact that this is only
one phase of the accumulation of
cash for unlawful uses. Another
important phase is brought about by
the present high tax laws" he ex-
plains. 1T has been brought to my
attention that great many people in
this country today are avoiding
taxes by closing transactions with
cash rather than in the usual method
with check or draft
1--WE are in the midst of big real
estate and building boom," he con-
tinued, "in which much property is
changing hands and with large profits
in many cases. Settlements In these
large transactions are being made in
cash, which is stored In safe-deposit
boxes, the homo stocking or other
receptacles where there will be no
record Of the transaction. The gov
ernment thus loses a great deal in
needed revenue.
"Such transactions also entail the
use Of a very large amount Of cash.
Through these two channels it is
estimated by government officials and
l:by prominent bankers that something
in the neighborhoed Of $4,000. 200
Of the circulating medium is kept out
Of the usual channels.
"Thus business and individuals are