Evening star., 1934-12-24
BANK CHECK TAX
WILL Be DROPPED
Governments 2-Cent Levy
to End When Act Ex-
pires January !
BY EDWARD C. STONE.

BY EDWARD C. STONE.
The Governments 2-cent tax on
all bank checks will be dropped on
January l, 1885, the special revenue
law expiring on that date.
There is a possibility that the tax
will be revived by the next Congress
as it has meant nearly s50,000.000
year in revenues.
The charge is made when each
check is charged against the deposi-
tors account so that checks not
cashed until January will not come
in on the revenue tax.
Washington bank depositors will
get their final charges in this months
statements except in cases where the
statements are sent out two or three
days before the close of the month
In such instances, the tax charged
during the last days of December will
be made in the January statements.
Dropping of the Government tax
will be great relief to the bookkeep-
ers in the banks as the levy has re-
quired considerable extra work, al
though a great many fewer checks
have been drawn in an effort to save
the cost Of the tax
When the tax first went into effect
here, many depositors saved enough
cash to pay the majority of their bills
without the use of checks It was
soon found, however, that the tine
and trouble required more than offset
the actual money saved, and the num-
Der Of checks drawn was considerably
expanded.
The recently adopted uniform serv-
ice charges are now a much more i'm
portant factor in the number of checks
drawn by local bank depositors than
the 2-cent Government tax. The two
charges, however, are making people
hold down to the very limit in the
number of checks used, bankers re-
port.
January Rise" Predicted.
While predictions are often taken
with "a grain of salt" the following
forecast from United Business Service,
Boston, will be unusually interesting
to the vast throng of traders in
stocks.
Purchases of stocks on the last
trading day before Christmas have
shown profit at some time in Janu-
ary IN 35 of the last 81 years. The
Dow-Jones Industrial Average. which
goes back to 1897, has recorded an
advancing trend after Christmas in
every year except 1910 and 1926. Even
in such definitely downward years
as 1881 and 1882, there was sub
stantial rise in his popular average
during the initial month of the year.
The two chief causes for this ira
ditional upturn in security quotations
are probably the seasonal peak in cor
porate disbursements, and the ten
dency for sentiment to improve at the
turn of the year. The January con-
centration of dividend and interest
payments. as well as bond maturities
and redemptions, provide much new
money for investment There is also
the reinvestment of funds following
the December tax sales, which causes
a greater demand for securities.
Dividend and interest payments
next month should record a substan-
tial gain over last January. This
factor, together with a general feeling
Of optimism regarding 1885 prospects,
should bring about another good jan
uary market"
Bus Line Earnings Improve.
Net earnings of the Washington
Rapid Transit Co. during the first
II months of this year showed a COM
plete turnabout from the 1888 figures.
according to the financial statement
filed today with the Public Utilities
Commission.
Net revenues this year we're $8,-
431 SIS, against a deficit last year of
S46,284.94. This means a total gain
in net in come of S54,716.49 in the IL
months, really remarkable record.
The Rapid Transit Co. reported op-
Grating revenues for November as S34,-
98997 in comparison with s33, 3,236. SO
in November. 1888, gain of S1,753O4.
Operating expenses totaled S31 ,06939
against $50, ,421 81, or an increase of
S6475 Deduction of operating ex-
penSes left the bus company an oper-
ating income for November of So
e20.58, as compared with S2,81512, a
gain of sl,1O5.46.
Net income after all charges and
1,5t
against $563.57 in November, 1898,
an increase of Sl,38l.29.
New A. b. A. Mortgage Move.
Under authorization of the Ameri-
can Bankers Association Admins
trative Committee the executive Off
GERS of the association have taken
steps to promote cooperation by bank
ers generally with the Federal Hous-
the Administration in making effect
i've titles II and III of the national
housing act, setting up mutual mort
gage insurance and creating national
mortgage associations, it was an
nounced today.
In a letter addressed to all men,
bers Of the association by President
r. S. Hecht, urging them to become
approved mortgages under the act.
the opinion is expressed that these
sections are mot only effective ma
tional recovery measures, but will ex-
ert a beneficial economic effect in
liquifying mortgages that now are or
may become part of the investments
of banks"
This action by the association is
IN addition to its previous activity in
cooperation with the housing admin
istration in regard to title I, provid-.
ing for the renovation and moderni-
cation of homes Robert w. Fleming,
first vice president of the association,
and president of the Riggs National
Bank, has been appointed by James A.
Moffett, Federal housing administra-
tor, as a member of the National
Housing Advisory Council of 25 and
designated on the Executive Commit
tee of that body.
Banks Declare Dividends.
Directors of the Columbia National
Bank have declared a quarterly divi-
dend of $1.50 per share, payable on