Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-02


lawmakers busy
"A r,.r,,nx and prevent the
con deration Of
any of the numerous changes that have
been suggested and recommended In
the banking laws.
This will mean that all financial
measures on the calander will be wiped
off the slate, to be passed over to the
next Congress for consideration and
enactment or turn down.
Bankers generally who are operating
under the national banking act are
very anxious that the limit of one year
as the life of realty bonds and notes
In which they may operate be removed
and that the three-year limit, the
average life of real estate paper, be
substituted
Some bankers, members of the Federal
Reserve system, would welcome share
of the profits, but there seems small
chance for this laudable wish to be
realized. Reserve banks are not max
ing the money they were with business
activity and market speculation going
on unhindered.
See a Little Light.
Some brokers, bankers and others
watching the situation in securities and
in the business world, as well, profess
to see an edge of silver lining to the
clouds. 1t is likely that the holiday
trade will bring much encouragement
to retail business and this must be
reflected in the wholesale.
All over the country there are fat
Christmas savings bank accounts ripen-
ing and it Is probable that there will
be large November buying against these
savings which will be distributed early
If hs1CS
local merchants will have no need to
complain.
Reports to Local Bank Official.
Robert ". Fleming, president of the
Riggs National Bank, has Just COM
pleted his official report on the recent
A. B. A. Convention, under date of
October 20.
The following are the points Of spe-
cial interest that have not been here
tofore given much publicity. In the
matter OF revising its position on
branch banking, the association acted
very carefully and the wording of the
resolution was given particular atten-
ton. Here 1t Is as adopted, and also as
reaff1rmed in a later test vote:
THE American system of unit bank
ing, as contrasted with the banking
systems Of other countries, has been
sifled community life of the United
States. The future demands the con-
tinued growth and service of the unit
bank in areas economically able to
support sound, independent banking of
this type, especially as protection
against undue Capitalization of bank
ing power. Modern transportation and
other economic changes, both in large
centers and country districts. make
necessary some readjustment of bank
ing facilities.
In view of these facts this asso-
citation, while reaf1rming its belief IN
the unit bank, recognizes that a modi-
flcation OF its former resolutions con-
demning branch banking in any form
Is advisable. The association believes In
the economic destrability of community
wide branch banking in METROPOLITAN
areas and country wide branch bank
ing in rural districts where it is eco
nomically justified.
The association supports in every
respect the authority of the laws of
the separate States in respect to bank
ing. No class Of banks in the several
States should enjoy greater rights than
banks chartered under the State laws"
Regarding Taxation.
The, association went on record as
opposing any taxation that did not en-
body the following principles:
/. That no more than a reasonable
proportion of the net income of national
banks be absorbed by taxation.
2. That other financial institutions
In competition Herewith be taxed by
the same method and at the same rate
as national banks.
3. That the aggregate burden Of taxa
ton of national banks, however, i'm
posed, shall be no greater, in proportion
to their net income, than is the aggre-
gate burden of taxation of mercantile,
manufacturing and business corpora
tions of a general character in pro-
portion to their net income.
4. That means be established by law
by which discrimination in violation
Of the foregoing principles can be
readily demonstrated.
S. That the real estate of banks
shall be separately taxed to the same
extent. according to its value as other
real estate Is taxed and that taxes paid
on real estate shall be disregarded in
computing the relative tax burden on
banks and on other property or busi-
ness, except as a deduction from earn
ings or profits
At the round-table discussion of the
Committee on Taxation, when q report
as to the tax conditions in each and
every State was called for, Mr.. Flem-
ing outlined the situation in the Dis
trict of Columbia, and reported that
Chairman Cooke expressed himself as
entirely in sympathy with these prob
lens and in favor of some readjust-
ment and relief.
Further Recommendations
"That national bank member be
permitted to own 66 2-3 per cent or
more of the capital stock of State
chartered trust company provided that
the stock so owned shall not exceed in
amount so per cent of the capital stock
of the national bank owning 1t, pro-
vided such national bank has an ade-
uuate surplus. Such an aflliated trust
company shall be under the examina-
ton of the controllers ONCE; may be
operated in the same or adjoining
building with the national bank and
may have the same personnel Of on
GERS and directors;
"That a national bank charter shall
carry with 1t grant Of trust and
fiduciary powers with such limitations
as to capital requirements as the law
shall provide"
Mr.. Fleming closed his report with
A. Anlf at