Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-15
ASSOCIATION RAPS
BRANCH BANK PLAN
Young and Pole Suggestion
Called Plot to Wreck Pres
ent Dual System.
BY JOHN F. SINCLAIR.


citation has just discharged some 'heav!
volleys at the new branch banking plar
recommended by Owen D. Young anc
formulated by J. w. Pole, Federal con
troller of the currency. Assailants o.
the proposed project charge that it il
a plot to wreck the dual banking sys.
tenn of State and national banks anc
force all banks into the Federal system.
This, they hold. is both unfair and
illogical. Banks should have freedom
of choice as to whether or not they
wish to associate with the central sys-
tenn. Furthermore, State banks, organ
lied under the supervision of the indi-
vidual States, should be formed accord
ing to the needs of local territory, Of
which the State is better judge than
the National Government
AS usual, there Is much to be said
on both sides. The argument that local
needs are better understood by local
governments is a sensible one. That
banks should have perfect freedom OF
action as to their connections with the
Federal system is more open to doubt
The association spokesman themselves
speak favorably of the idea of branch
banking. But how is such framework
to be effectively operated under dual
set-up where both systems are likely
to be actually, if not formally, at log
gerheads?
Recent banking history clearly indi-
Gates that there is growing public
resentment against lack Of, internal
banking control and stability. Branch
banking appears inevitable as normal
economic development. The essence Of
branch banking is Capitalization Of OPP
Grafton. Public welfare dictates CEN
tralization of Government regulation
as well. Is it impossible to have flex-
ible plan which would permit mainte-
nance of State banks, established to
fulfill local requirements, but clearly
within Federal system?
Italy's decision to float an internal
bond issue of $210,000,000 for CONVEX
sion purposes, instead of placing it in
foreign markets, came as something OF
a surprise The move may be result
of improvements in the Italian econom-
ic situation According to reports re-
ceived by the United States Department
of Commerce on general business trends
throughout the world, Italy displays the
most heartening signs of picking up.
UNEMPLOYMENT
have noticeably decreased, company re-
ports for last year continue satisfac
tory, an excellent showing was made at
the Milan Spring fair, and Italy's trade
agreement with Soviet Russia was re-
newed. All played a part in bringing
about happy result.
The new bond issue is being offered
to aid Rome in meeting about $4,000
600, 900 in treasury liabilities due next
November 1t is expected that holders
of these pending bills will accept the
new bonds in payments as the terms
are exceptionally good.
A special feature of the issue is the
series of prizes, from 900 down to
a few thousand, which will be open each
year to holders Of the new bonds. Thus
the operation has something Of the
flavor Of lottery about it. This is ex-
pected to speed up its absorption by
the public.
italy is fully able to meet her No
vember obligations in cash. but prefers
to avoid depicting her cash reserves as
much as possible, and so offers these
bonds.
Ireland has managed to show a
surplus in her well balanced budget this
year despite the havoc wrought by the
world depression, but only at the cost
of commodity taxes, which seem some
what excessive. None the less, it is
an excellent showing for this young
nation to make in its ninth annual
budget report
Some idea of the commodity tax rates
may be gained from the 8-cent tax on
gallon of gasoline, and 2-cent tax
on a pound Of domestic sugar, in addi-
ton to a customs duty for the same
az iTT9rAnTfnd
films must pay an entertainment tax
of cents foot! Although the income
tax was greater than expected, the
liquor revenue was just the opposite.
One tax abolition was that on race
course betting.
The regularity with which income
taxes abroad usually come UP to es-
Inmates, even in times Of stress. may
possibly be explained by the fact that
a larger proportion of them are drawn
from incomes in the higher brackets.
Depressions hit the lower and middle
classes hardest and reduced their tax
payments.
Where an income tax is based in a
large measure upon these classes. it is
bound to be affected as it is in the
United States.
Evidently the last thing Americans
will give up in a pinch is their cigar
ettesI Despite hard times and large
portion of workers floating on the ebb-
tide of unemployment, the tobacco
manufacturers are among the few who
have not had their profits riddled. Con-
sumption of cigarettes, and snuff as
well. increased during the past year.
Cigars, however, received a setback.
Since bankers, politicians. and capital
lists In general, are additionally aSso-
ciated with cigars, this may merely
indicate another form of capital re-
trenchment!
The American Tobacco Co., large
cigarette makers, chalked up the
heaviest profit growth Of any such firm
in the history of the industry, garner
ing a net income Of S13,000000. Lorillard
Co. comes next with a profit Of s2,277.-
TOT in excess of the previous years
record. Liggett e. Myers and r. j.
Reynolds each netted in the neighbor-
hood of $4,000, 900.
TIE 10 leading cigarette organiza-
tions earned q total net income OF
SIG, 1926, 666 for 1880. This is a gain
OF almost $4,000, 900 over the year be-
fore, or an increase of about 1875 per
cent. While three cigar companies and
the American Snuff Co. took less
profits, they are still substantially on
the Dlack SLQe Ol IIle IcoSeI.
It was remarked in this column, when
commenting on the budget speech Of
Philip Snowden. Britain's doughty
chancellor OF the exchequer that his
proposed Swaziland tax might be an
opening Socialist wedge in the struc-
ture Of capitalism The recent an
nouncement of Mr.. Snowden regarding
the tax proves this opinion to have
been an accurate one.
After declaring that land was given
TO us by the Creator, not for the pri-
vate use of dukes, but for the equal use
Of all His children" the chancellor in
formed Parliament that the new tax
was way of asking the landowners to
render unto Caesar the things that
are Caesars" The theory Of the tax
- -