Evening star., 1922-06-13

extended provisions of the 1921 act
were brought about by the decisions
Of the Supreme Court in the ccses
Of Goodrich vs.. United States. Mer.
chants Loan and Trust Company VS..
Smietanka and Brewster vs. Walsh.
The bureau Of Internal reven us.
Following what appeared to be the
expressed language of the 1873, act
with respect to a sale OF property
;tcquired prior to March :, 1913, COM
puted The gain OH tho March I. 1913.
suit VS. that where the amount r.
ceived from the sale was more than
the March !. 1918. value. but less tr an
cost, tax was imposed upon the DIR,
ference betw cen the amount received
and tho March !, 1913, Value, as a
taxpayer had not realized any gain.
View of Supreme Court.
The Supreme Court in the deci-
sions above mentioned held that only
true gain could be taxed
Remember. % that only actual
gain is taxable: (2) that such gain
must arise subsequent t" Nar"!. l.
1913; 90 that on.y actual loss is
deductibla: 90 that such loss nlust
occur subsequent TO March !. 1913;
CO. that the taxable gain cannot ex-
coed the actual gain, AMI t6) that
the deductible loss cannot exceed he
actual fo"s. Regiu with coinpari 5on
of the cost and the amount acquired
from the sale"
Mr. Williams gave numerous il
lustra tons Of points brought out that
i.ava thI bankers al excellent in
sight into problems.
Scores OF actual caseS. many OF
thcn going 10 highest court decisions,
II aa..fi if,yN c a
Mr.. Williams l.as listened to with
great interest az he vas dealing
with tou- h nuts that are frequently
brouehr 10 the banker for cSack:ns.
Facts Drawn From Sta,e Banking.
some Hacts From History of State
Eankin5 in the United States was
the final address scheduled on the
Program. !, was assigned to Victor
V. Deyber lie said. in part:
"In no particular has the progress
Of the United ates been more
marked than in thu improve !nent OF
the banking systems. You have 10
6oubt heard much about the losses
causeI b. state hank notes prior to
the civil var, hut Il is very proba Die
these losses have been areauy ex-
aggerateG The state BANKS Of today
ere entirely different from what they
were in those times. They are. as &
rule. quite as wCl ma-aSed and
opera-ilg under . rigid Avs and as
careful eliicIal supervision as tie "a
tlorel -ba ks
"ro start a bank au6 issue notes
with little or no regard for their re
Gemption n casE vas SO easy way
CT acquiring tie propert!- Of 9th rs
thai ever honest men bec<t re
vented every conceive ble rlctf ID OF
misleading tahe public with oanhias
oevices.
La; r akcrs tried to control tais
tend nncy. but ttS!r cruCe IDEAS ire
qu.ntly made matters worse.
Talks OF "Runa on Ban:ks."
"We all think Of a run on bank
as composed of frightened depositors.
n.adly olaInortng 10" thet, mocsy, .ut
the runs on Il . state haIk$ GU, ing
the perie1 mentioned were r2ade by
the holders OF tn, banks notes. The
less to stockholders vas, h DOUBT.
lass than might appear If we compare
hanks Z the periud for 1<u+ with
taose o. the present day. CAP "a. tien
vas apt 10 be only partially paid up.
the grea er Fart Of tha 10 s.es &C
cured, it probably consisted Of stock
holGsrs' notes oe little or no NaLue,
"Pennss lvlnia anu taw Yorh we're
the seats of the first hanAsng institu-
tons org; ni.ed IL the Unite. states,
and they continue to be Two Of the
foremost banking states o. tie In on
at the present time.
The spe-ker then detailed h, Eor-
rnat.Cn OF GiHere"t state oa7Ns. and
spoke on their circv .at!on trout e g
up to the national bank acc enact
ynelt.
"rn> long years OF loss and trou-
lie arising from S late bank otes we g
finally e mirateC ly tbs 20 per cent
tax lnlpo ed on n m Unuer the ma
tional La1k act, which :nads their
issue UP ccftaLle AID drove them out
of ctrc'-la ton.
History OF Banking in States.
"-,ho history of tankir g In all the
states Of the Union is. in general
terms. very similar 20 that Of the
Empire stlte-a long ard tedious cvo-
Itlon 0t tHcories, politi~s, tie seek
tar f pe. socaI aGv1ItaGe at III }
cost Of the public ana tie Il Y IN
ming out OF sou-d, honest Meth q 5
20 as.y year. the United States
tionai ta-X act. born 4 ne strife OF
tha evil wa- ana developed II the
tericd of Our gee lteSt expansion ana
grow H.. It las great ece OF cor
s-ruc.. We IL gislat!oIl, a7d its Pre- e--
va ion 1nd2r the federal 'es 2cvo act
almost intact is . recognition Of its
valve TIE nat. ona1 bank act re-
noveG the Ills Of 'w.!ccat' money,
fur listed an absc Tutelv S: Re form OF
ylorey', r1a6e poss si0ie e 1rn'ous cx-
9aIsiVn II bank. 6 facilities. and in
spite of me abus Wolli have oene-
TED the comfy As much as the re-
SPECIAL, NOTICES.