Evening star., 1932-06-18
BANKERS ARRANGE
ITO COLLECT TAXES
"Details of Method for Gather
r. ing Check Levy Are
Determined.

Determined.
BY EDWARD c. STONE.
Final details for collecting the two
cent revenue tax on all bank checks
which goes into effect next Tuesday.
were settled at a special meeting of
the District of Columbia Bankers AS
scciation, in the directors room of the
American Security 81 Trust Co. late
yesterday The mechanics of collect
ing this tax has been a problem to
banks all over the country.
Banks here will follow the recon-
mendatons in methods offered by a
special committee of expert bank
auditors which made its report yester-
day. This committee composed of
members of the auditors section of the
association. consisted of Arthur J. Linn,
controller. Federal American National
Bank &; Trust Co.; Raymond G. Marx.
controller. Riggs National Bank. and
j. Damn Fabcr, auditor, American Sc
curity e. Trust Co.
The method adopted in collecting the
tax will vary slightly in each bank. but
a majority of the banks will make the
entries on the books late in the month
instead Of each day as the checks come
in. However. in case an account should
be closed during the month. the tax
will have to be figured at that time.
Yesterdays meeting was largely book
keeping affair. of great Importance to
the banks, but of less interest to the
public.
The depositors, however. will pay the
tax Two cents per check does not
seem very heavy, but the Government
has estimated that the total revenue
Will amount to somewhere from S78.-
100000 to s90000000 a year. While
it is a comparatively small sum the
individual will pay, corporations will
have to pay great deal more.
Yesterdays meeting was one Of the
largest ever held by the association.
The collection of the tax on safe de-
post boxes-10 per cent, which the
renter also pays-iS a simple matter,
so far as collection is concerned.
Several Treasury officials attended
yesterdays meeting by invitation and
showed great interest in the methods
under discussion. President c. H. Pope
presided.
Many Local Dividends Voted.
Directors of the Federal-American Co
have declared TIE regular quarterly divi-
Gerd of Sl50 on the preferred and Is
cents On lLlp CNllIlOl SlDCk, DOtn pay
able July t. stock Of record June "a
The Carpei CORPORATION directors have
voted a quarterly dividend of 37l2 cents
Per share. The last quarterly payment
was so cents. The company is engaged
in food distribution.
Directors of ErerSOn's Bromo-Seltzer
have vcted the regular quarterly divi-
Gend Of so cents per share. payable on
july l to stock of record June Is.
The East Washington Savings Bank
tas declared the usual semi-annual
dividend of s per cent. payable June 80
to stockholders of record June %
The Real Estate Mortgage e. Guar
anty Corporation has dec ared the semi
annual dividend Of per cent on the
preferred stock, payable July to stock
OF record June 90.
The recently declared Capital Trac-
ton dividend Of 25 cents per share is
payable July to shareholders of record
June IA
Ayres Finds Conditions Better.
Marked progress has been made dur
Ing the past month in creating a solid
foundation on which to base business
improvement. says Leonard P Ayres
vice president of the Cleveland Trust
Co. whose monthly reviews are so closely
followed by local bankers.
Most Of the time during the past
year and half bank deposits have
been shrinking and their loans and in
vestment5 have been falling" comments
Col. Ayres. Now these movements
have been reversed and bank deposits
are increasing and their loans and in
vestmentS are moving up. 1t is clear
that the liquidation Of bank security
holdings has been halted and loans to
business are being expanded.
The Improvement is pretty clearly
to be attributed to the open market
policy Of the Federal Reserve System.
which has increased the amount OF
Reserve credit and enabled banks to
pay down their borrowings.
This month and this Summer will
clearly constitute difficult period, with
complications arising abroad and with
business activity a a low ebb in this
being made in banking, in credit. in
the bond market and in national
finance. These accomplishments are
not spectacular and they do not furnish
work for the unemployed They do,
however, constitute the essential basis
from which increased business activity
can start.
Seven Factors Helping Recovery.
The United Business Service of Bos-
ton states that although business vol
ur7eS have shown no upturn. consider
able progress toward recovery is al
ready evident: GD Commercial failures
are declining: % bank suspensions
have practically stopped 90 bank de-
posits have stabilized; a. bond prices
are rising: 80 gold Withdrawals have
1essened; 80 radical financial measures
nave been discarded; % the spread
between the prices Of raw materials and
finished goods Is being lessened
Decrease in Bank CIearings.
Reversing the upward trend of the
previous week, check transactions
throughout the country fell off sharply
curing the week ended June Is. The
total value of checks passing through
the clearing houses of Il leading cities
Of the United States, according to
Bradstreet's, dropped 209 per cent
from the previous week to s4,439, $685.
coo
Washington bank clearings totaled
s19.600000 against s22, ,993. 600 in the
previous week and 27 per cent under
the corresponding week a year ago.
Baltimore cleared s52.265,OOO against
61,942, 900 last week and a drop of
"a per cent from the like week last
year.
R1CnmOnd clearlngS were 23.S27, 600
compared with s26.877,O00 in the pre-
vious week and off 36 per cent from
the same time a year ago Norfolk
made better showing, clearing being
ahead of the preceding week, al
though far under last year
Commission Changes Approved.
The Board of Governors of the New
York Stock Exchange has approved
a sliding scale of commissions to be
charged by members on bonds as fol-
lows:
= For non-members the price per 81 900