Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-01
ASSOCIATION O.K.'S
BRANCH BANKING
National Organization Re-
verses Opposition to Sys-
tenn Voiced in Past.
By the Associated Press.

BY the Associated Press.
CLEVELAND, Ohio, October L.
COMMUNICATIVE branch banking in
metropolitan areas and countrywide
branch banking in rural districts
where economically justified" were in
dorsed by the American Bankers As
ISOLATION in convention here today.
The association had heretofore OPP
posed branch banking.
After opposition had developed on the
floor of the convention to the resolu-
ton on branch banking. the resolution
was modified to state that the separate
States should be free to make their
own laws in regard to the subject.
The opposition had come from the
Pennsylvania and New Jersey delegates
whose representatives said they believed
in the SoundneSS Of the present unit
banking system and that branch bank
ing interfered with individual initia-
tive. They gave the opinion that branch
banking should be limited to the cor
porate limits of municipalities.
Stephenson President.
Rome C. Stephenson was unanimously
elected president of the association to
succeed John G. Lonsdale. Stephenson
Is vice president of the st. Joseph Coun-
ty Savings Bank of South Bend, Ind.
Lonsdale is president of the Mercantile
Commerce Bank 81 Trust Co. Of st.
Louis, Mo.
Harry j. Haas, president of the First
National Bank of Philadelphia, was
chosen first vice president. Francis H.
SisSon, vice president of the Guaranty
Trust Co. of New York was elected Sec
ond vice president.
The association announced that 1t
has found evidences that the present
business depression has run its course,
and that I'VE have now reached a low
ebb. and with the resumption of con-
struction very gradual, but definite, i'm
proYement may be expected"
The dole system OF unemployment
relief was condemned by the aSSocia-
ton. The attitude of American labor
on unemployment relief was commend
ed. The bankers said they believe
that the ultimate solution of the prob
lem Is to be found in a system of pri-
vate insurance which will not degen-
crate into dole system to meet po-
litical exigencies."
o. X. International Bank.
The bankers approved the Bank for
International Settlements, expressing
the hope that 1t will develop more
and more into an instrument making
for the orderly management Of interna-
tional financial transactions and thus
aiding in the maintenance of peace
among nations"
The association gave its support to
the section of the House resolution on
bank taxation now pending in Congress,
providing that taxes on shares OF ma
tional banks shall be measured by taxes
on competing moneyed capital.
Opposition was expressed to national
bank taxation that does not involve the
following PRINCIPALS:
That mo more than q reasonable
proportion of the net income of national
banks be absorbed by taxation; that
competing financial institutions be taxed
by the same method and at the same
rate as national banks, that the burden
of taxation of national banks be no
greater, In proportion TO their net in
come than the burden imposed on other
business institutions and that the real
estate of banks shall be separately taxed
Ito the same extent, according to its
value as other real estate is taxed"
Recommend State Income Tax.
State income tax to distribute the
burden of taxation more equitably was
recommended today by Thorton Cooke,
president of the Columbia National
Bank of Kansas City, Mo, and chair
man of the Committee on Taxation.
He said 1t is the belief, in the face
Of the fact that governmental costs are
continually mounting, that property tax
should be increased no further.
Property tax has been too long an
Indictment to evasion, a penalty for sue
cess and brake on progress" Cooke
said.
1T isn't very effective either, except
upon real estate and bank shares, and
there it has become, in too many in
stances intolerable."
He said new objects for taxation must
be found, and one of these should be
income.
Will Not Brighten Industry.
"Some fear that the State income
tax will frighten industries from locat-
ing in the States that have 1t, but let
us consider" he said.
-Four and half per cent is a typical
State income tax. Several States have
it. II labor and raw material condi-
tons In given State are attractive, are
corporations deferred from coming In
by the fact that they can retain for
themselves only 95ia per cent of their
profitsP
II do not find that they are. Perhaps,
indeed. they are glad to know that. If
they don't make any money, at least
they won't have great taxes to pay In
the few years 1t takes to get q new
industry going.
There Is another way, of course, by
which intangible property can be
reached. Some States tax capital value
at 3, and mills on the dollar. It
isn't so eficient way as taxing the
income"
Gold Bullion Reaches Naples.