Evening star., 1921-05-28
HEAVY PAYMENTS
ACCOUNT TAXES
Bankers Say Total Will Be
Lessened by Special De-
p0SitS-RetaiI Trade.
by 1. A. FLEMING.

Tax money is being Withdrawn from
the banks Of this city very heavily, as
the annual personal, intangible and
realty assessments have to be cared for
during May. if penalty is to be avoided
These payments will total not far
from $9.000.000. with no redeposit for
temporary employment in the District
as was the case before the demands on
the Treasury were so pressing as they
are now.
One thing that bankers note is the
fact that many people have made spe-
cial deposits to care for their tax pay
m.nts. and this may have the effect OF
reducing the Withdrawals somewhat.
Government. deposits are being de-
ple,cd with great rapidity; indeed. bank
ers cannot count on being allowed to re-
tain proceeds of certificate sales more
than a few days.
With juno IS near at hand. deposits
will suffer another serious decrease,
as the second installment of the in
come and excess profits taxes will then
be due and the Semi-annual interest
on the liberty bonds Of the first issue
and Of subsequent issues into which
they were converted. Millions of GER
tificates issued in anticipation of in
come and excess profits taxes will ma
ture at that time. 1t will also. in all
probability. mark the period for the
first issue of short term. probably
three-year. notes, by the Treasury. if
the machinery therefor is ready.
All signs certainly point to con-
tinued high rates for money despite
the fact that there seems to be hun
dreds of millions available for the
government at the going rates for
such security.
Retail Sales Value.
The Federal Reserve Bank of New
York, in it's monthly review of credit
and business conditions. has this to
say of the retail business with espe-
cial reference to reports from forty
two department stores:
Sales of stores located in New
York city and Brooklyn were IS per
cent below those of last year, but
elsewhere. in this district they were
SIS per cent greater.
The number of transactions in
creased 1876 per cent. indicating that
the volume of merchandise sold con-
tinues TO be much larger than last
year. The average amount of each
sale, as compiled from reports of
about 100000 sales submitted by the
stores that keep such records. fell
from $3.e8 in April, 1920. to $3."4 in
April. 1921. decline Of IL per cent
1
less than the average decline in price
of the articles sold.
The dollar value of sales by ap-
parel departments continue to sur
pass those of last year in spite Of the
reductions in price. but sales OF house
furnishings are falling somewhat be
hind. Merchants attribute this tend
ency to the limited construction OF
new houses and apartments in this
district.
stocks held by department stores
increased per cent between April !
and May / because of the receipt OF
the usual shipments of merchandise
at this season of the year. Retailers
continue to buy cautiously, but are
placing fairly large orders for their
fall requirements, especially in those
lines in which they believe prices
have approached stabilization."
Railroad Bctterment.
There he's been considerable en-
couraGement in the reports OF earn
incs of the railroads Tor the month
of April. The comparison with April.
1920. unfortunately made the earn
ings appear much better than they
really were. for the reason that a
year ago the switchmen's strike was
on and traffic was seriously interfered
with.
Another fact that stands out in a
study of the reports is that the gains
in net are accomplished not so much
from Increased business as from the
effective enforcement of economi es
that may have to be paid for later on
in added replacement and mainte-
nance.
Union Pacific. Pennsylvania. New
York Central and Baltimore and Ohio
made good gains in net on small gross
hetterment. while Southern Pacific
showed an excellent net and gross
gan.