Evening star., 1932-06-21
BANK CHECK TAXES
ARE NOW IN EFFECT
Withdrawals of Funds by
Depositors in Person Are
Not AsSeSsable.
BY EDWARD c. STONE.

today in every bank in the United
States. Bank depositors all understand
that they must pay the tax, the only
question today appearing to be rela-
tive to counter checks.
The law on counter checks, however
is really very simple. If the blanks furn-
1shed by the banks say pay to the
order Of" the tax must be paid. That
form makes a negotiable check on
which every customer must pay the
tax. whether he presents it in person
or not.
If, however, the blanks furnished by
the banks say for counter use only
not negotiable" with the added state
ment, Received in person from" etc
the depoSitor does not have to pay any
tax. This form of counter check is
merely a receipt. The new revenue
law does not touch it.
Practically all the local banks have
adopted this form of counter check
Some have used this form for years
Others have had them printed within
the past few days. They are con-
sidered much safer than the old pay
to the order Of blanks as a stranger
cannot go into bank and get bunch
of blanks and then attempt to forge
them in other banks later
Extra Work for Banks
Hundreds of checks were pouring
into the local banks today from the
Clearing House and other sources. The
first tax bookkeeping was being started
This will add considerable extra work
also additional costs, but the best
methods of handling the tax have been
very carefully worked out
The new tax applies generally to all
checks or orders for the payment of
money upon any bank banker or trust
company. whether such instrument is
payable at sight or demand. Cashiers
checks are also subject to the tax. to
be paid by the payee bank as are money
orders issued by banks or express COM
panies or travellers checks issued by
banks.
Savings Withdrawals. however, when
the pass book is presented, do not re-
qulre the payment CT the tax. State
county and municipal officers checks
drawn in their official capacity are ex-
empt from the tax
Transfers between checking and saw
tngs accounts, either on standing or
special instructions where such accounts
are owned or controlled by the same
person, are not orders within the mean
ing of the act and such transfers are
tax exempt.
Veteran bank depositors said today
that the present tax method is easier
for those drawing checks than the tax
was in 1898. Every depositcr had to
keep supplied with stamps and put one
or each check. Today he pays the same
tax. but his bank keeps the record.
All ne has to do, other than pay the
tax. is to watch the stubs in his check
book SO that his account will balance
with the bank statement every month
or every three months.
Safe Deposit Tax Also in Effect.
The 10 per cent tax on safe deposit
boxes also went into effect today and
many people had to add 80. 40 or so
cents to their payment on safe deposit
boxes for the coming year. Those who
are in arrears in their payments do not
have to pay any tax on these back dues.
A surprise is in store for good many
safe deposit box renters. Many mailed
checks Saturday or Sunday, expecting
their receipt by the bank on Monday.
Many such letters arrived this morning
Just in time to get in on the new tax.
In such cases the banks credited the
box holder with the payment and then
had to send out special letters to COL
lect the tax. These checks also ar
rived just in time for the additional
2cent check tax.
The next bank statements may prove
revelation to those who draw host
of bank checks each month. They will
show just how hard each individual
is trying to help Uncle Sam balance
the budget. And bank patrons must
keep on paying these taxes until July,
1884
Bonds Lead Exchange Trading.
Bonds led trading on the Washington
Stock Exchange today. The first sale
was in Washington Gas SIS at 9912.
Washington Gas IS. series A. opened
at 98la. two $4,000 sales then being
recorded at 99 Bonds closed with two
$1,000 sales in Gas series A bonds at 90.
Capital Traction stock made a new
very light. Three fve-share lots
changed hands, ex dividend. at 9l2.
Washington Railway & Electric pre-
ferred figured in four lO-share lot sales
at 1872 ana in another 10-share sale
at 78s4.
The auctioning off of the exchange
seat held by Edward B. Mclean, former
publisher of the Washington Post, was
postponed one week. on request of Nc
Leans attorney. The attorney stated
that he wished to get in touch with Mr..
Mclean. in Paris, or wherever he may
be. at the present time. The exchange
governors willingly granted the request.
Bank Stock Market Steady.
New York City bank stocks held
steady during the past week based upon
the averages compiled by Holt Rose g.
Troster. The aggregate value of Is
leading New York City bank stocks at
June II closing prices, amounted to
ST ,082, $4,000, against an aggregate
value of $1,096, ,236 900 on June 10 and
total of S929895, 600 reported on May
81, which was the lowest total recorded
since the decline started in 1929.
The average yield of the Is stocks
on June II, was 11.36 per cent, which
compared with an average yield of II %
per cent, recorded at the close of the
previous week.
teen issues now are selling at 81 times
80 times on June IL, and 60 times on
May 81, the record low.
Heard in financial District.
John A. Reilly, one of the vice presi-
dents of the Federal-American National
Rank ds Trust Co., was one of the
speakers at the convention of retail
credit men here today. He has made
credit matters special study and was
formerly connected with the local asso-
citation.
The Union Trust Co. has adopted
the same Summer schedule which the
bank used during the warm season a
year ago. The trust company now
closes at o'clock in the afternoon, the
same as the national banks do. The
early closing hours will remain in ef-
fect until September l6.
The National Fertilizer Association
reports that for the first time in two
months, wholesale prices advanced last
Meek. The associations index ad
Eanced four fractional points.
While Peoples Drug Stores, Inc. re-
ports that sales in May were off over
olNo rr, l,4 Grrf S,roy y,