Evening star., 1932-06-26
D. C.. Financier Addresses An
nuaI Convention Held at
Old Point Comfort.
BANKS IMPROVED IN WAY,
RESERVE BOARD STATES
Review Shows Local Financial In
stitutions Hold an Enviable
Record for Stability
BY EDWARD c. STONE.

Arthur j. Linn, auditor of the Fed
eral-American National Bank g. Trust
Co. OF this city. gave vivid picture OF
the requirements attendant to the new
two-cent revenue tax on bank checks
before the annual convention Of the
Virginia Bankers Association, at Old
Point Comfort yesterday, according 70
a special dispatch to The Star. The
new law, which went into erect last
Tuesday, has aroused intense interest
among bankers relative to the best ways
of handling the tax records and also as
TO lust what bank items are taxable. In
clearing up the point as to what items
are subject to the new Government tax
Mr. Linn said:
What New Check Tax Covers.
al All checks, which includes
written order upon bank. banker or
trust company puTportlng 10 oe oIawh
upon a deposit of funds which autnor-
izes the bank banker or trust company
TO nav a certain sum of money TO a
specified person or to his oroer OF W
bearer and on demand.
. TRAITS. which includes written
order from one person to another re-
curing ordering or authorizing bank
banker or trust company 70 Oay on oe-
mand or at a fixed or determinaole 1u-
tl1re time sums certain in money 10 OF
to the order Of a specified person OF
bearer.
''3 orders for the payment OF money
includes anv order drawn in TINS coun-
try or in a foreign country and payapie
in the United States upon anV cahA'
banker of trust company for the pay
~3ofv c1gVr1 nf 0l0nHV 10 a
snecified person or to his order or 10
bearer. Such order may be or may not
he nayable on demand and may or may
mot be draw upon a 6eUosit Of FUNDS.
"a Express companies end others en-
Gagged in the business of accepting de-
rosits subject to check. draft, or cEcer
nr transmitting funds by checPs, drafts
~ c-6erS for the navment. of money
have been considered as banks, bankers
o- trust connanies within the meaning
Of the act. Travellers CHECKS issued DY
such companies are subject to the TAX
when r,rssented for navment.
"5 when presented through the
cleerinr house. checks negotiable In
character, on savings accounts.
Reviews Items Not Taxable.
The Washington banker also reviewed
items which are not considered TAXABLE,
such as coupons fixed to bearer bonds.
withdrawal in savings accounts, checKs.
drafts. etc. drawn hv officers OF State;
county or municipality. in their ofnclai
capacities; checks not honored; recelptS
presented as counter checks; notes
charged to depositors accounts; Trans,
fers between account and trustee, ana
various kinds of debit tickets.
Mr. Linn made brief reference TO the
new Government tax Of 10 oer cent on
safe deposit boxes. his address oelng
considered the most timely made before
the convention. -.
Investment problems and the rela-
tions between the public and the rail-
roads were also given careful attentlon
durine the sessions which opened
Thursday and closed yesterday.
Robert NJ Hanes, president OF the
Wachovia Bank g. Trust Co. OF WINS
ton-Salem, N. c.. declared tnat DanK,
srs must adhere to those Ideals OF souho
and conservative management Which
have always prevailed IN the OeSU IL
stitutions in the country.
G z. Tiffany Of Warrenton TOOK an
active mart in the convention and was
rnennber of the Resolutions Committee.
Ranking Improved During Day.
The Federal Reserve Board reported
Yesterday that the banking situation
showed continued general improvement
during MAY. In that month there were
~ bank failures with aggregate deposits
of s36.O84. 900, COMPARED with ~ tne
month before involving S3l ,924,OOO' ana
81 the same month last year with oe-
posits Of S43,210,0o0. ....
The net loss in the banking structure
was so institutions and $14,09l 600 IN
deposits. as II banks were reooeneo' re-
storing a deposit Of S2l ,993, 900:
D,1rinp the four --onths which have
sIansed since creation of the Recon-
striIctiou Finance Corporation there
have been 3l8 failures, as compared
with 342 In January and 556 last de-
cember. nit
ressad last October when 522 lnstltu-
tions closed their doors, involving de-
posits of SAT- ,o0oO 600.
Local Banks Brilliant Record.
Tho fine record for soundness made
bv the banks in the District OF Coiurn-
bia In recent months again comes 10
light in a report Just made by the FED
eraI Reserve Board. This report, WnNh
covers bank suspensions by geographical
divisions. shows that Washington IS one
of the safest places in the United states
for the depositing of bank funds, at
least il was during the first five months
NJ the present wear. tabulation places
New England at the top Of the list Of
geographical divisions. only very small
proportion of recent suspensions occur
ring In that section.
-Four of the six States making up the
New England territory have been en-
tirelv free of failures during the
period Massachusetts, contributed Of
fhe failures and Connecticut the other
three Maine. New Hampshire. Yer
mont and Rhode Island ali had IN
blemished records. This record Is
eoualed by but one other State, New
Mexico. and by the District Of Colum-
bia.
In contrast. the board states that
the East North Central region, conpris-
ing Ohio. Indiana, Illinois, Michigan
and Wisconsin, with 1873 failures, led in
hank uoortalities. Individually, the State
Of illinois is way in the lead with "a
failures in the fiye-month period.
Ice Dividend to Be Paid.
A recommendation to declare the
regular quarterly dividend of so cents
has been decided upon by the Execu-
tive Committee of the American Ice
Co which has a big plant in Wash
jnpton. and will be made at the direc-
tors meeting on Tuesday. according to
Charles c. Small. president.
-A1xY ppTrTc pFDTTrF0