Evening star. [volume] (Washington, D.C.) 1854-1972, 1934-04-02

position, with the reasons tor us
stand
1t is the aim to present birds
eye view of the outstanding features
IN this field of legislative proposals"
F. M. Law, president of the associa-
ton. says in an Introductory letter
addressed to the members of the asso-
citation.
"As We have labored in behalf of
sound banking and for what We be-
lieve is for the public welfare We have
been particularly gratifled at the cor
dial attitude and earnest spirit of CO.
operation in behalf of the national
welfare that we have uniformly met
whenever We have had occasion to
discuss banking legislation with the
President of the United States and
his advisers"
Measures Bankers Favor.
Measures to which the association
Is favorable are listed in the complla-
ton as follows, bill introduced by
Senator Fetch repeating that por-
ton of section 81 of the banking act
efs1933. which increased stockholding
ssT,.irements of directors of member
banks of the Federal Reserve System,
Measures introduced in the House
and Senate extending for one year.
that is, until July l, 1885, the tenn
porary plan of insurance of bank de-
posts under the Federal Deposit In
surance Corporation.
Bill introduced by Senator Fletcher
providing that where States tax ma
ln he
burden imposed could not exceed the
average burden imposed upon other
taxable intangible personal property
and that States could not tax State
hank members in the Federal Reserve
system at a greater rate than national
Banks
Measures providing for elimination
of double liability of national bank
shareholders. A group of measures
prepared by the Attorney General.
based on study and experience of the
Department of Justice, as part of its
campaign against crime. some of them
related specifically to crimes against
banks.
Revenue Changes Urged.
In regard to the 1884 revenue bill
the association urges notifications in
four sections. Section % (b), it points
out. contains language which will pro-
hibit banks from taking deductions on
account of interest paid to depositors,
If funds are used to purchase tax eX-
empt securities. The Senate Finance
Committee has been urged to delete
this feature. it states.
Section "a (al 80 has the effect
of denying the right to take deduc-
ton to the extent that expenses can
be allocated to income received from
taX-exempt securities and will result
in confusion in administration and
partial notification of the taX-exempt
features of tax-eXempt securities" the
association declares, recommending
that this subsection be deleted.
In respect to section 1T I'D of the
revenue bill, providing that losses
from sales or exchanges of capital as
sets shall be allowed only to the ex-
tent Of the gains from such sales or
exchanges, the association recon-
mends an exception providing that
this subsection shall not apply to
a bank or trust company"
A similar exception is urged for
section lit 81, which considers the
retirement of bonds the same as an
exchange" it being pointed out that
retaliation of losses on call or ma
turity Of bonds is beyond control of
the owner and therefore not subject
to manipulation for tax purposes"
Exchanges Bill Improved.
In an analysis of the national Sc
curltles exchange act of 1884, as re-
introduced March 10, the association
explains the various effects of this
measure on banking, commenting that
this reintroduction of the earlier
Fletcher-Rayburn bill has material
notifications which greatly improve
IL so far as banks are concerned"
Among measures to which the asso-
citation expresses opposition are: Sew
eral bills requiring that banks pur-
chase their insurance against loss
through dishonest or criminal acts
from companies licensed or qualified
in the States in which they are To-
Gated. it being pointed out that such
bills would destroy the free and open
market for insurance to safeguard de-
positors no less than stockholders of
banks"
Other opposed measures include
number of bills broadening postal saw
ings, it being stated that the associa-
ton "has long been opposed to any
extension of the Postal Savings System
and is in favor of a contraction of its
provisions; bill to establish a postal
note system. and bill providing that
municipalities and other political State
subdivisions, insolvent or unable to
meet their obligations, could ask for
readjustment of their debts through
bankruptcy courts.
Trading on d. c. Exchange.
The weeks trading on the Wash
ington Stock Exchange opened today
with $500 Washington Railway g.
Electric As selling at 91l2, practically
the same as in other recent sales
Washington Railway &, Electric
preferred stock came out on the board
at "a on very small turnover.
Another stock that appeared today
for the first time in many weeks was
Real Estate Mortgage g. Guaranty
preferred 100 shares selling at IL.
The stock closed with l.. bid and
Ia asked.
There was feeling of optimism
In the banks and the broker houses
in the financial district today. the
first business day in April. Retail
trade all over the country is proving
especially favorable and host of
other vital business indices are con-
tlnuing their uptrend.
Secretary Morgenthau has invited
tenders on two series of United States
Treasury bills. aggregating 100000
600, part for 81 days and the rest
for 1872 days.
A belief that the current world
wide Improvement in economic condi-
tions represents a major trend and
that this trend in general will persist
regardless of the immediate effect OF
abnormal influences is advanced by
Alfred P. Sloan. jr.. president of Gen
eral Motors Corporation, in his annual