Evening star., 1939-08-11
D. T.. Bankers Study
New Social Security
Amendments
Several Questions Must
Be Worked Out in
Application Of Law

ACJ LfllS morning, pldCeu OdIlhS ol
the country, including the District
of Columbia, under jurisdiction of
the act but there are several ques-
tions which, in the opinion of bank
ers here, may have to be worked
out in regulations before the definite
application of law can be determined
here
Generally it is believed that all
banks of the city now will come
under social security and the en-
ployeS of these institutions vii thus
be protected by the amended pro-
visions Of the act, beginning jan
uary |, 1910
There are nine national banks
and 13 trust companies and savings
banks here. The trust companies
and savings banks were said today
to have been paying the per cent
District of Columbia unemployment
tax, but the national banks have
not
President Roosevelt in his state
ment discussing the amendments to
the law outlined many benefits
which he said would accrue, but did
not mention specifically the bank
ing amendments.
Unemployment Tax.
The unemployment tax, a local
levy, now stands at 3 per cent, hav-
ing been jumped up from l and 2
per cent. A big reserve has been
piled up here in the District through
payments by employers. Under the
provisions OF the act, 1t is understood
that the tax rate could be scaled
downward in 194l through an ad-
justment depending on the status of
the reserve fund. 1t is apparent
that there is hope among some en-
ployers here that this 3 per cent
rate might even be shaved, in view
Of the big reserve here. Further
more, administrators of the act must
decide whether the national banks
which have not been paying the un-
employment tax will be allowed to
come N at the lower rate. as others
did at the beginning. or will be
brought under the per cent rate,
now being paid by all who have been
under the act since its inception.
The old-age assistance provisions
call for payment by both the en-
ploye and the employer of l per
cent on the first $4,000 income per
annum. All income over that figure
is exempt from the tax. A credit
is allowed by the Federal act of 90
per cent of the Federal levy for
funds paid to a State under a State
social security act.
Banks here in Washington are
somewhat in the same category as
those in New York State. where the
new amendments Will lay a some
what heavier new burden on the
national banks than on the State
member banks of the Federal Re
serve System. Because the trust
companies and savings banks in
both Washington and New York
State have already been paying the
per cent unemployment levy To-
cally. they will have to add only the
! per cent old-age assistance But
the national banks here and in New
York State, which have not been
contributing to the unemployment
fund, now will have to pick up both
the 3 per cent unemployment levy
and the l per cent old-age assist
anCe.
D. c. Stores Show Gain.
Six department stores in WASH
ington showed a gain of l per cent
in sales during July this year as
compared with July last year, ac-
cording to retail sales report from
the Richmond Federal Reserve
Bank
This was in line with the gain
OF l per cent by 55 stores in the
fifth Federal Reserve district dur
ing July, but smaller than the 3
per cent gain registered through
out the country by 563 stores in all
II Federal Reserve districts.
The July showing this year was
much better than that in July, 1888
as July. 1888, sales here registered
a decrease of % per cent below
those of July, 1887.
Gain for Seven Months.
For the first seven months OF
1889 the six local department stores
registered a gain of Al per cent
over the first seven months of 1888
which by contrast had registered a
decrease of 34 per cent below re-
turns for the first seven months OF
1887
Thirteen stores in Virginia showed
gain of 1.6 per cent in July as
compared with July, 1888, which ir
turn had registered a decrease OF
ga per cent below July, 1887 The
Virginia stores showed a gain of :
per cent for the first seven months
of 1889 as compared with the first
seven months of 1888. which in
turn had shown a decrease of 81
per cent below the comparable 1887
period.
Three Show Decrease.
Three stores IN Richmond showed
decrease of 0.5 per cent in July
as compared with July, 1898, which
in turn had been % per cent below
July, 1887. The Richmond stores
for the first seven months of 1899
however, had a gain of "a per cent
over the same period in 1888, which
in turn had been OIL per cent under
seven months of 1887.
Eight stores in Baltimore, Md.
registered a gain of 03 per cent ir
July as compared with July, 1888
which had shown a decrease of rs
per cent from July, 1887 For the
first seven months the Baltimore
stores had gain of OF per cent
as compared with the first sever
months of 1888, which by contrast
had registered decrease of 81 pei
cent as compared with the frs
seven months of 1887.
Leaves for Colorado.
Harry G. Meem, president of the
Washington Loan & Trust Co., lef
Washington last night for a vaca.
ton trip to Colorado Springs Il
visit his daughter, Mrs. Edward B
Mclean. jr.. and her baby daugh.