The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-08-17
BANKS OPPOSE
TAXATION
PLAN F..
nv RICHARD HATTON

For some time banks in the DIS
trict have BEEN considering the in
clusion OF Government bond interest
in the gross earnings tax return
The matter has been studied oy
the committee on taxation as well
~ be the general counsel Il the
Bankers Association. Frank j.
hogan. Upon this subject tbs
Official Monthly Bulletin OF the d
G. Bankers Association, issued yes
terday. says: "On July 81 informa.
ton was received that practically
every member bank had followed
the suggestion OF the association,
through Howard Moran, chairman
Of the committee on taxation, that
they protest against the inclusion
OF Government bond interest in the
gross earning tax return OF local
banks
Special forms were supplied TIE
members banks for use in makins.
these returns, enumeratingg the Sc
Gurities from which interest exemp.
ton was claimed and protestlag
against the necessity of such pay
n9ent Such form was made Uni.
form as suggested through the
office Of Frank j. Hogan, general
counsel of the local association.
Test Case Brought
Last May the Riggs Nationa
Bank brought a test case to the
s preme Court OF the District of
Columbia and Justice Stafford de-
ci0ed IN favor of that institution.
This case Is now before the Court
Of Appeals. but it is not expected
that any Judgment will be rendered
before October.
The first tax to be paid under
the law for tlse twelve months end
ed June 80, 1928, will be due in
September. ed banks have Deen
advised to pay this tax then lnaef
protest as Indicated in the forms
provided.
1T is hoped that this matter will
he settled during the year 1928, and
IL the Riggs case Is favorable it is
very possible that large saving
viii be gained by the various in.
stitutions in this city"
Plan Get-TOgether
This is the day set for the big
social set-together and summer out
ing Of the District Of Columbia Life
Underwriters Association. which will
be held at the Manor Club, Nor
beck. Md. Golf will occupy the
morning and afternoon, with a
i. - 80
Tomorrow evening has been desig-
mated INSURANCE night at the
country home Of the City Club, at
which Mr. and Mrs John f..
Cremen will act as host and
hostess
Copy of the proceedings Of the
last annual convention of the d. c..
Bankers Association Is now in the
hands OF the printer and it is
expected that copies of the report
will be in the hands OF members at
an early date.
The total of first mortgage bond
issues, collateral trust notes and
land trust certificates offered in the
United States during July. as re-
ported yesterday through S. w.
Etraus and Company, was $64,0GS,-
500, 4 gain of more than IL yer
cent over July. 1927. The number
of issues this July was 80, com.
pared with SO in July, 1927. making
the total for the first seven months
value OF $547 ,245,65O
The value of 109 issues in June,
this year. was $95,451, 900.
Note Of Warning
A note of warning against ex-
tended credit expansion and exces-
sive borrowing has been sounded
by Governor George W.. Seay, of
the Richmond Federal Reserve
Bank in Richmond. Governor
Seay's statement discloses that on
July 81. Washington bank borrow
ings were nearly eight times larger
than at the same time a year ago.
Loans to local banks on June 81.
1927. were $4S5, 900, while on July
81 last they were $S.770,0 900.
Against this amount Washington
banks had $9.174,26 in reserve de-
posts. On the same date the re-
serve ratio at Richmond was the
lowest of any bank in the system.
Governor Seay says the impression
prevails that the increase in bank
loans on securities is very largely
confined to New York. Such Is not
the case, he asserts, outside loaas
being nearly double those in Wall
Street on recent date. The Re-
serve Bank head says that continued
expansion OF loans cannot 90 on
without such penalties as a rise
in interest and discount rates.
That it is not an artificial situation
by any means. il another assertion
by Governor Seay. 1t is the natural
result of acts which have preceded
1T and led up to it, he declares.
His letter also discusses the result
OF the diminished gold supply on
the present situation.
Executive Vice President John Nj.
Riordon. of the Bank of Commerce
and Savings. plans TO leave Wash.
ington by motor within a few lays
for three weeks vacation. which
will be spent at Asheville. n. c.,
and touring through the South.
.
CHICAGO LIVESTOCK