Evening star., 1921-10-05
RECORD Of LEGAL
DEPARTMENT ABA.
Judge Patton, General ColIn.
sci, Reviews Efforts as
to Certificates.
BY 1. A. FLEMING.

The chief interest of the morning at
the American Bankers Association
convention at Los Angeles was in the
address of Thomas S. Patton, the gen.
cral counsel of the association.
Details of the work before Congress
during the year included the success
full fight on the proposed measure
taxing bank deposits Z of l per cent
to be paid by the depositor, the bill
being opposed by Judge Patton, For
mer Representative Burke FOR the
Pittsburgh clearing house. and by
The counsel for the Cleveland Clear
ing House Association.
, At the request OF H. H. Mckee OF
Washington, Mr.. Patton, Mr.. Mckee
and George o. Watson appeared at
hearing before the banking ana cur
rency committee against providing
for the establishment of savings de-
partments in national banks, ana seq
gregation and special investment OF
capital and assets.
A similar bill is now before the
Senate.
Judge Paton's story detailed every
act of the legal department, including
the work for the exemption OF oank
deposits of nonresident aliens; the
extension of provision for deduction
of worthless debts to include partial
write-off of worthless debts-as- pro-
vided in the revenue bill: exemption
of income tax on community chests
and deductions of charitable gifts to
charitable corporations; opposition to
objectional provisions in the Long
worth bill providing a basis for as
property acquired by gift. under
which the cost Of the gift would have
TO be determined by every donee
'when he disposed of 1t. 1t was held
that these provisions would kill the
voluntary trusts. Provisions are still
Contested the $500 exemption on
income from building and loan as
sociations successfully. :.
Secured presentation in Congress of
proposed laws. providing that state
taxation on national banks shall not
he at greater rate than Is assessed
foa other capital used in banking"
Fought and will continue to fight
10 make robbery of a federal reserve
bank or member bank a felony and
advised against the publication Of
bank salaries. as called for by J. Skel-
4. ton William just before retiring from
the office of controller of the cur
rcncy.
citation resolutions Is being prepared;
ais" of state banking statutes. and
recent Supreme Court decisions af-
fectinS banking.
Treasury Certificates.
Every issue of Treasury certificates
outstanding is selling at a premium
OF the issuance price This strength
reflects the increased firmness in
bonds and especially the sharp ad-
vance in liberty issues. with u nine
point gain in the fourth AIS and an
eiGht-point rise in the third ANS:
are stTons at hid and
100 ILLS asked. while the June Is is
sue of three-year notes, bearing 5S
;per cent interest, is held at 101A.
with 1918 bid. Premiums of x to
7-16 are bid on March maturities,
1922
Bankers hold that the next issue
of notes and certificates will be made
at lower rates.
The matter of an issue with October
j. is still doubtful, although the
Treasury is strong enough to meet
the sG35.000.000 Treasury certificates
third liberty bond interest and 9TH
er interest maturing then. without
again appealing to the loan market
until October, when matter of s527.-
100000 certificates and interest ma
ture.
1t is held by some bankers that
there is possibility of small
cial conditions and as guide to fu-
ture financing plans.
Up to date the Secretary OF the
Treasury has not called on the pro-
ceeds of the September Is sale, hav-
ing credit of $69S.149.100, the
amount allotted to subscribers.
Local bankers report continued
demand over the counter for all is
sues of Treasury certificates. Here
tofore." said the official of a savings
bank. when a customer came in with
money that he would not need for.
say, six months. l was generally able
TO secure the deposit at per cent
on certificate of deposit. but now
they know all about government
financing and wish to participate"
Local Securities Slow.
There was very little doing on to-
days session OF the. local stock ex-
change. Neither in stocks or bonds
was there anything approaching ac-
tivity Traction So sold at 87h and
S73s. Railway preferred at 59k and
n few shares of Capital Traction at
s6A.