Evening star., 1932-10-22
M'KEE ADDRESSES
BANK AUDITORS
Calls for Decrease in Govern
ment Costs and Hits De.
mands for "Gifts."

Addressing the Eastern Regional Con-
ference OF Bank Auditors and Con-
trollers, H. H. Mckee, president Of the
National Capital Bank and chairman
of the Washington Clearing House
Association, declared that I'VE must
decrease Federal expenditures and resist
insistent demands for outright gifts of
public money, or change our method
of taxation and spread it more widely
over all classes" He spoke to the con-
ventioa late yesterday on THE Burden
of Taxation"
Personally" asserted the veteran
banker, Il favor general sales tax and
excise tax on certain luxuries to sup
plant the tax on tobacco and customs
tax on imports.
Millions of collars could be added to
Federal revenues by repeal Of the
eighteenth amendment and the diver
sion to public use Of bootleggers' profits
Should Tax Habits.
'The wisest statesman in the world
knew the sovereign cannot regulate the
personal habits of the people. If part
OF the people have personal habits that
are looked on with disfavor by others
tax them for the rivilege of gratifying
such habits and make them help to
support the state.
Napoleon once said he studied the
subject long time without finding
way to raise revenues by taxing the
virtues of his people SO he taxed their
vices and supported the empire.
If Federal taxes were the only ones
We had to pay We could give the vet
Grams their bonus and soon pay the
public debt. But while Uncle Sam
takes his toll, his 48 relatives must have
their share. Their demands create the
heaviest burdens we have to bear.
THE real estate tax is the principal
source of revenue for these political
subdivisions, Mr.. Mckee continued,
"and the irony of the situation today
is that millions of homes and farms are
taxed upon the basis of an inflated
value put upon them 10 years ago when
people were keen to trade dollars for
goods and services, selling their labor
and goods at high price.
Taxes Remain Static.
"As our national and individual in
comes have decreased, our taxes have
remained static or have shown a dis
position to grow in variety and volume
Can we continue to pay our taxes at the
present high level? I think not. Mil
lions have nothing to cay taxes with.
Under these conditions would it not
be wise for people to begin to examine
the value of the Government service
the politicians are giving them and find
out how many useless and worthless
activities are being carried on in the
name of Government"
In conclusion the Washington banker
declared the people have the remedy
in their own hands. There is no valid
evidence" he said, that We shall return
to the level of 10 years ago for some
time, if we ever co. And we certainly
can't pay tax bill Of IS billion dollars
a year at the existing price level. The
problems of taxation and the problems
Of debts and insuperable. Debts create
taxes and taxes create debts until the
bubble bursts.
Il am not a pessimist," he insisted
Il believe forces are at work that will
get us out of the mess We are in eco
nomically. And I believe people are
becoming tax conscious"
H. S. NoIen Speaks.
Delving deep into their most intricate
problems, the delegates to the confer
ence heard three important addresses
today.
H. Stadtler Nolen of the Baltimore
Trust Co. was the first speaker at the
Willard session, his subject being
Branch Bank Audits" He brought
many points Of unusual interest to his
hearers.
Observation on Research in Bank
~ h. falr Hy, 49,, "
Schultz. assistant controller of the
Chase National Bank, New York. His
experiences since he has been employed
by the largest bank in the world proved
most entertaining and informative.
The Bank as Tax Advisor" was the
subject of an address by Charles D.
Hamel of the firm of Hanel, Park g.
Saunders of this city The banks are
constantly being called upon to render
tax advice to their customers and much
OF this work falls upon the shoulders
of the auditors. Mr. Hamel is a former
chairman of the Board of Tax Appeals,
incidents in his own experience adding
value to his talk.
At yesterday afternoons session q
very interesting address was presented
by A. J. Kenner of New York, vice
president, Foote Adaptable Systems Co.,
whose subject was What De We Mean
by Control?"
The convention will end tonight with
banquet at the Willard, at which John
Poole. president of the Federal -Ameri-
can National Bank. will preside, and
David Lawrence, editor of the United
States Daily, will make the chief ad-
dress on Current Economic Problems" !"
Many other features have been arranged.
TT 6 TREASURv pAIANCE