Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-08-10
Department Stores
In Fifth District
Gain Over Year Ago
Banks Will Be Brought
Under Social Security
If President Signs Bill

If President Signs Bill
Department store sales in the
Richmond Federal Reserve District,
including this city, increased in July
by / per cent over July year ago.
according to report by the Board
of Governors of the Federal Reserve
System.
An even larger gain, of per cent,
was registered by stores in this area
for the first seven months of this
year over the comparable period
year ago.
The report included SO stores in
Is cities.
This compared with an increase in
July of per cent over July a year
ago for all reporting stores in the
country, and a gain of per cent
for all stores during the first seven
mnoths over the comparable period
year ago.
Department store sales showed
the usual decline from June to July,
and the boards seasonally adjusted
index remained at Sc per cent. based
on the index of 100 representing an
average for the years 1923 to 1925.
Banks and Social Security.
If President Roosevelt signs
amendments to the Social Security
Act passed by the last session OF
Congress-aS he is expected to-
1t will bring all banks in the coun-
try, including the District OF Column
bia, within the jurisdiction of the
act
Under the Social Security Act as
1t stood before amendment the Blu
reau of Internal Revenue held that
national banks and State member
banks of the Federal Reserve Sys-
tenn were t'instrumentalities" of the
Government. and hence exempt
from the Federal tax.
An amendment to the Federal act
limits exemptions to those institu-
lions wholly owned" by the United
States or specifically exempt under
other Federal statutes. In effect
this is understood to mean that the
banks here, which heretofore have
been exempt, because they were con-
sidered instrumentalities of the Fed
eral Government, will now be ex-
empt no longer but must pay the
tax. The amendment is effective
January /, 1910. The amendment
freezes the l per cent pay roll tax
at | per cent for the next three
years, instead of permitting 1t to
60 to 1l2 per cent next year.
If the President signs the bill,
therefore all banks and each en-
ploye of bank here will be subject
to the l per cent pay roll tax up to
$4,000 for each employe.
Federal Credit Allowed.
There is Federal credit allowed,
however. for payments of old-age
assistance taxes to States up to 80
per cent of the Federal assessment.
AS local banks already pay the
District of Columbia old-age assist
ance tax, they would have to pay
under the new act only the differ
ence between the total Federal as
sessment and the 80 per cent eX-
emption or credit allowed for taxes
paid to the District of Columbia.
Whether the unemployment in
surance tax of the Federal Social
Security Act can be applied to banks
here under the new amendment ap-
pears to be somewhat of a question
in local banking circles. No definite
opinion has been expressed, but there
seems to be some doubt whether the
Federal unemployment tax could be
levied until an enabling act is passed
for the District.
Directly to Employer.
The old-age assistance tax of the
Federal Government is payable by
both the employer and the en-
ploye, but the unemployment in
surance tax is laid directly on the
employer only. The rate of tax on
unemployment insurance is per
cent. But under one of the amend
ments now pending at the White
House a tax saving is expected to
be realized by elimination of the
unemployment tax on that part of
incomes above $4,000 yearly.
Stoker engineering was reviewed
at meeting of the mechanical stats
of Iron Fireman dealers in the
Mayf1ower Hotel yesterday. Lee
turers included E. C. Webb and T.
A. Marsh, factory engineers, and S.
H. Beach.
C. H. Pope, president of the Mum
sey Trust Co. has left on vacation
for Goshen, N. Y, where he will
spend his vacation at his summer
home. He plans to return August |
81.
E. c. Graham, president of the
Hamilton National Bank has Just !
completed new guest house at his
summer home at Arundel-on- the |
Bay.
Elwood G. Childers, assistant vice
president of the Morris Plan Bank,
has returned from vacation, during
which he attended the New York
Worlds Fair.
Mergenthaler Linotype sold today
at 1872 on the Washington Stock
Exchange, in block of 10 shares.
Washington Railway & Electric As
changed hands at 109ls Washing
ton Gas Light preferred went at
1071s, and Riggs Bank common
stock sold at 273.
Agriculture DEPARTMENT