The Washington times., 1926-01-05
REPORTS SHO v
BANK GAINS
BY RICHARD HATTON

BY RICHARD HATTON
Reports submitted by local banks
ct the request of the Treasury De-
partment evidence the businesslike
management and direction of bank.
ing constitutions in the District of
Columb ia- While several of the
exceptional gains during the past
quarter, the increased volume OF
business has in no sense been con-
fined to institutions with the great
est capitalization or the greatest
number of depositors. Taking the
|. banking situation as whole, as
disclosed by these statements for
the last quarter, az very distinct
gain is indicated.
The banking public should be as
much interested in the strength,
progress and stability of banking in
stitutions as are the officers and
directors. The main trouble in the
past has been general lack OF
knowledge on the part OF the pub
lie regarding the functions and
functioning of banks. An instance
is the feeling sometimes expressed
by a hank deposition that he is do
ing a bank. a favor by placing his
account upon its books.
Naturally any bank is anxious to
increase the number of it's de-
positors. It's progress is dependant
upoa healthy increase of de.
posits. On the other hand, an I'M
healthy Increase in deposits, that
is, an increase in the number Of
improbable accounts, tends to
lower rather than stimulate the
vitality Of a bank. 1t is the UNI
profitable account that both the
banks and the bank customers must
unite to eliminate.
It is considered in the. more
progressive banking institutions as
vitality important that the customer
be Informed as to the elements
which make an account profitable
elaborEte systems of analysis de-
erfnining what accounts are car
Red at a profit, and what accounts
are carried at a loss to the bank.
The present problem of the banker
8 to provide something to show
10 the customer which will impress
upon him the essential business
facts, something to indicate that a
hundred dollars deposited on the
first of the month and drawn out
by the sixth of the month is a
liability rather than an asset TO
the bank.
According to the advertising man.
ager Of the Mississippi Valley
Trust Company, ''it can be shown
that bank earns only about az
cents gross per month on each
500 deposited, if no interest is al
dependent upon an income OF 6
per cent from loans. which is
higher than the normal average
rate Of return. Out of these AZ
cents income per 800 of deposits,
the bank must pay overhead ex-
penses such as salaries of Officers,
clerks. teliers, bookkeepers, and for
machinery. light and power, build
Ing expense. rent, ledgers, check
books. statements, pass books and
many varied services -
The customer can exert a distinct
influence in the present era of
progress by assisting in the eIimina-
zion of the Improbable account, CIR
the institution of reasonable service
charges.
During the month of November
1925. deputy collectors operating
under the SIS collectors of internal
revenue throughout the United
States made 1851 investigations,
resulting in additional tax of $S,-
e60. 1854. OF this sum, $7,279, 887 has
been collected. The remainder has
been. reported for additional assess
ment. In many cases taxpayers
can not pay in full, in which case
1t is necessary to enter warrants
for distraint, levy upon personal
property and in other ways protect
the interest of the Governments.
The number Of delinquents who
never made a return reported was
1883. of whom II ,593 were income
tax delinquents and 8,105 delin-
quent in the payment of miscel-
faneous taxes. The figures shown
are not the result of a special drive
but is part OF the continuing work
or the Bureau. which will be made
public from time to time.
The stock market took year-end
re9liZing. pool adjustments, tax sell
Ing and professional speculative
seIhng in as most satisfactory man
ner, the absorptive power proving
to be of q degree not often seen,
especially after practically a year
or advancing prices.