Evening star., 1921-05-06
MILLIONS IN TAXES
ARE CHECKED OUT
Report Probable Payments of
$4,000, 900 to $4,000, 900.
Educating the Public.
ny I. A. FLEMING.

II is well that the banks of WASH
inGton are well fortified with the de-
posits of their customers. for. during
the balance of this month somewhere
between $500. 900 and Ss.o0n.000 will
be withdrawn to pay real estate. per
sonal property and intangible taxes,
due without penalty this month. and
thereafter. with penalty. increasing
with each month.
Already the flow OF the millions
from bank deposits TO the tax col
lector has started and each day is in
creasing in amount.
With the middle Of the month. the
18th. to he exact. S232. 100000 Treas
ury certificates viii mature. and an
other certificate issue. in all prob
ability will be offered. and further
Withdrawals from deposits will be
made for investment in this popular
form of investment for conservative
investors
AS against this obligation the
Treasury has to its credit from the
proceeds of March Is and April Is
certificate issues over $3.50. 900, 900 in
cash.
Between now and the 18th instant
the Treasury will require probably all
of the balance of the March Is GER
tificate proceeds and perhaps part Of
ing sl9O.7l5.50O.
May i the second installment of
income and excess profits taxes will
have to be paid to the internal rev.
enue department This will make an
other heavy draft on bank deposits
the country over and with a practical
certainty of causing a furry in the
money market.
There is one good result sure to at
tend the opening of the call money mar
ket in Washington next Monday morn
ing. There may not be sufficient de-
nj ind for loans to absorb all the Of
fAings. nor is it likely that acceptable
securities will be available to insure
| large loaning on call from day to day.
People here. as elsewhere. Believe that
| the only purpose of the call loan as made
| on Wall street is to take advantage
Of the high rate OF interest available.
Many still believe that 10. 20 or even
| 30 per cent may be obtained on such
loans.
With the daily Offering of call money
! on the local market at the normal rates.
6k to per cent, with prospects OF
slight changes either way. the matter of
| actual interest received will be the more
| firmly fixed in the public mind and the
| old theory of extraordinary large rates
will be dispelled.
Bank depositors know that they
will be paid the amount of their
checks on presentation to the proper
| bank. IL they have a sufficient balance
| to their credit. They should. there
all of its deposits and resources, that
! 1t must be ready on a seconds notice
| to hand over the cash to the owners
Then. too. many special deposits
are made with specific date for re-
payment of the funds fixed. The
government leaves millions to its
| credit with national banks and at
irregular periods calls for the repay
! nent Of fixed portion of the amount.
In order to be ready for these with
drawals the banks carry their Sec
| ondary reserves with New York on
| call. the funds being repayable on
| call.
| Local Securities.
There was more activity on the
market for local securities, with a
little firmer feeling, but without much
| change in actual quotations.
Capital Traction 5s. steady at
| SSl2: Potomac Electric Consolidated SIS
| improved to Sc, but other bonds were
nominal.
In the stock list Lanston was rea-
sonably active at n. with one small
lot selling at TN. Railway preferred
improved to 81. Washington Gas
slow at Al =. A sale of Capital Trac-
tion stock was reported at Ss, and
Mergenthaler sold at 12O.
Clearing House Meeting.
The Washington Clearing House
Association will meet this afternoon
; to indorse a candidate for director
of the Federal Reserve Bank of Rich
banks. pFe resignation of ". r.
Guide as a candidate has been re-
ceived.