Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-23
Number of Income
Tax Returns May
Reveal Increase
Total Amount Collected
Expected to Have Infiu-
ence on Trade Outlook.

Reports to the Treasury Department,
while far from complete, indicate that
more persons filed income tax returns
this year than ever before. The total
payments still are a matter OF con-
lecture and must be for some time,
since only the first five days figures
from the Internal Revenue Bureau coll
lectors have become available.
A spirit Of optimism, however. is very
apparnet in Treasury circles. Treasury
officials in general have counted upon
approximately $3.50, 100000 in pay
ments. Private statisticians indicate
their belief in many cases that pay
ments will not reach this amount. At
the Treasury they feel that the reduc-
ton from per cent to II per cent
in the tax rate will not cut as deeply
into receipts as was anticipated. The
reason for this is that the amounts
of earned incomes have been larger
than many thought possible.
Effect on Business.
When the reports are fully tabulated
the public will be able to judge just
exactly what effect the Wall Street
crash in stocks had on the country last
Fall and Winter. Secretary Mellon is
known to believe that the effect of the
recession In stocks, while severe, was
not generally disastrous to business.
Final compilation Of the income tax
figures Is expected to have q strong
psychological effect on the general busi-
ness situation. II the figures show an
increase over the estimates made pub
lie before March is, the effect on in
dustry and business in general unques-
tionably will be favorable.
The Federal Reserve Board has COM
pleted the compilation of its report for
1929, but has not made it public. This
undoubtedly will give review OF the
happenings during the stock market ex-
element, but it is extremely unlikely
that it will draw any conclusions from
those facts. It will In all probability
confine itself to a straight statement.
This Is the more likely because 1t Is
certain the report will be attacked by
Senators and Representatives opposed
to the board policies.
Questioning before the House COM
mittee in connection with proposed
banking legislation has already given
the board an indication of what 1t can
expect. These questions have been d.
rected at the possibility of few OF the
big bank consultations controlling the
activities of the regional Federal Re-
serve banks.
Treasury Aids Mergers
Controller of the Currenry Pole tes-
tified that the First Bank Stock Cor
poration and the Northwest BANGOR
poration could easily control the cleo
ton of the two directors chosen by the
banks in group one of the ninth Fed
eral Reserve district, which centers in
Minneapolis. He added that the North
| west Incorporation could perhaps dc
so alone, and that the two groups could
control the election of two directors
| chosen in the banks of group two and
the ninth district. He pointed out
however, that there would be no likeli-
hood of control of such elections in
the case of branch banking.
While the position of the Treasury
toward the merging of banks into large
systems seems favorable, these mergers
and consultations will meet severe OPP
position when they are discussed on
Capitol Hill. There are groups in both
the House and In the Senate who are
consistently opposed to big mergers OF
any sort, whether they take the form
Of bank or steel consultations.
| Copyright, l930)