Evening star., 1922-11-20
NATIONAL BANKS T0|
ASK TAX REDUCTION
Favor Commissioner Ru'
doIph's Plan as Far as
They Are Concerned.
BY 1. A. FLEMING.

While savings banks are very well
content with the reversal Of the de-
cision Of the appraiser to tax savings
banks on the same basis as they do
national banks, the fact that the mat
ter has been, under discussion has
started movement for more moder-
ate taxation by national banks.
There Is small question but what
the national group will support the
plan suggested by Commissioner Ru-
dolph for an assessment Of 6 per cent
on gross commercial earnings and
per cent;for gross earnings from saw
ings deposits, first being allowed to
deduct the amount of interest paid
to savings depositors
Practically every national bank has
it's savings department, and this also
is true Of all but one trust company.
while the trust companies also pay
enormous amounts of interest annu-
ally on checking accounts.
Rates of interest vary between 8
AUD per cent in savings banks.
A million dollars of savings, draw
ing per cent and yielding per cent
revenue to bank. providing every
dollar Of it could be loaned out at
$6o.000 less 100000. the amount of in
terest paid to depositors. The saw
ings bank would pay 4 per cent in
terest on the balance. $4,000. and tn"
national bank per cent on the
$4,000.
Savings banks would thus be able
to pay much higher rate Of interest
on savings than national banks or
trust companies.
Thus readeth the law and the saw
ings banks were right in their in
depreciation thereof. So said the
nj
But the national banks and trust
companies may be expected to put up
fight for concessions in the matter,
at least. for deduction of interest
paid to depositors before taxation.
Exemption Expires Soon.
1t is believed that there will be a
lively demand for taxfree bond
issues in the next few months. the
more so as Congress is expected to
advance a constitutional amendment
that will do away with the tax frees.
Sentiment Is strongly in favor of such
action. especially among the so-called
radical group in Congress.
Upon the expiration Of five years
from the official close of the war.
July 2. 1921. by proclamation. $780,
600 liberty AS are exempt; for two
years after the war, July 2, 1923, the
s105.oo0 fourth AZ liberty loan ex-
emption ceases.
pires within q relatively short time.
1t is suggested that holders of this
issue may desire to exchange for
liberty 3l2s, Panama 3s and Federal
and Joint Stock sLand Bank bonds.
Such conversion Is permissible under
section zoe of the 1921 revenue act.
Local Securities.
Business on change continues un-
usually slow, with the leading trac-
tion shares entirely nominal and
with only a very limited business in
bonds recorded.
Washington Gas notes. -. per cent.
sold at 1O4: the IS of the Potomac
Electric Company at ssA to SSA
Traction 5s at 97ls and S1k. and
Railway IS at 1877.
Buyers and sellers were so far
apart in their bids and offers that
it was impossible for sales to result.
Capital Traction was held at t031s,
with 1019s bid; Railway common. So
bid and 81 asked, and Railway
preferred. II bid and IS asked, ex-
dividend.
1t will probably be two or three
weeks before the market RECEIVERS its
wonted daily activity
Second National Coup.
The Second National Bank sprung
decided sensation today when it
opened a branch bank at 1893 G. street
northwest. in the heart of the up
town financial district.
Bankers doing business in the i'm
mediate neighborhood were entirely
ignorant of the newcomer for some
hours after it had opened, when they
started sending the customary flowers
and greetings.
Personal Mention.
George w. White was at the Ma
tfonal Metropolitan Bank today.