Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1921-10-04
WORLD NOT ON
ROAM TO RUIN,
BANKERS TOLD
No Cause For ePssimistic Con.
clusion, Says President Of
American Association
FORCES AT WORK TO
RIGHT TMAL-ADJUSTME.NT
A Little Human Sympathy Need
ed In Revenue Act, Says
eDuoiter

LOS ANGELES, Oct 4.-(By As
sociatcd Press There is nothing in
either the domestic or foreign situa-
ton to give rise to the pcssimistic
conclusion that the world is riding
straight to ruin, John S. Drum, Of
San Francisco, president OF the
American Bankels association, de
clared at the opening SESSION Of the
convention of that body mere today.
"Rational examination of our con
dition today must prove TO the great
est doubter that our problems are bul
natural manifestations of world wide
mal-adjustmcn5 that great natural
forces are working to remedy he
said. e..
The injection of little human
sympathy into the Revenue act will
do no harm. Henry NJ. Campbell, OF
DcIoit. chairman of the legislative
committee, said in an address.
Section 205 OF the new act
amends section 2O2 Of the act of
1918, SO as to provide that in the
case Of gifts made after December
81, 1920, the value, as a basis fol-
taxation in case of sale, shall be the
cost to the donor or, the last preced
ing owner by whom it was not ac
quired by gift said Mir. Campbell
while in the case of bequests, de
vises and inheritances, the basis is
the value at the time the bequests
take effect. This distinction is H.
logical and unfair. Some acadeH4ie-
theorists must have devised this
scheme.
Sentiment Alone Enough.
Sentimental reasons alone are
sufficient to justify fixing the valde
of property at the time the gift Is
received as the basis for ascertaining
the gain or loss, in case of sale. The
significance of the gift is lost if ii
must be accepted subject to the re.
qurement that the donee must ascel-
tain the cost and in case of sale must
pay tax upon the basis of what the
gift cost the donor or the last pre-
ceding owner by whom i was not ac
quired by gift.
cost of the gift to the donor of the
last preceding owner by whom it was
not acquired by gift is also likely in
many cases to be insurmOuntable, In
cluded in the gifts subject to the act
are heirlooms, books and manuscripts,
works of art, cherished household be-
longings, Christmas gifts, wedding
presents and many other things
whose value lies chiefly in the senti'
ment attached to them Imagine the
recipients Of. a wedding present re-
plying to the donor: 'We gratefully
acknowledge acceptance of your gift
provided you furnish us with certl-
fled statement Of its cost
A Notable Example.
"Another interesting illustration of
how the law might operate--a sword
once owned by Lafayette was glVenI
by him to a distinguished member of
a prominent Virginia family The
sword has been handed down from
father to son for more than one hun
;dred years. The present owner has
been offered fabulous price for 1t
but he has refused to part with 1t
But suppose that poverty or hllSloI'
tune compelled the owner to sell the
sword, what value would be taken
as the basis for the tax? Would
it be the cost to Lafayette, provided
that it could be shown what he paid
for it?
"There is also grave doubt as to
the validity of the provision authorlz'
ing the commissioner to fix the value
in the absence of all information
available for the purpose.
"There has been some apprehen,.
sion-that the word gift was used
in the Revenue act might be con-
strued to include what are generally
known as voluntary or living trusts
The voluntary trust is not a gift, but
is more of the nature of transfer
under general appointment, or in
contemplation of death,
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