Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-09-08
BY EDWARD C. STONE.

the Jones-Wheeler bill altering the
structure of the Federal Land Bank
System.
The Steagall bill reducing the Fed
eral deposit insurance assessment
rate Is in much the same situation
No action has yet been taken by
the House Banking and Currency
Committee on the bill, although
bankers have long been urging its
passage. They feel that the rate
could be reduced materially and that
the Government would still have
ample funds with which to meet any
banking emergencies.
Bankers Watch Tax Bill.
Following brief hearings before
the House Ways and Means Com
mittee, the excess profits tax bill
was reported to the House and
passed under rule limiting debate
The bill Is now pending in the SEN
ate Finance Committee. which has
been conducting hearings on it
According to present indications
few banks will have to pay any ex-
cess profits tax under its provisions
bankers said yesterday, although the
Senate committee Is making sub
stantial changes in the bill before
reporting it.
Alternative methods Of calculat-
ing the tax are provided, one based
on average earnings and the other
on percentage of invested capital.
In either case a complicated formu-
Ia Is used in arriving at the tax
base. If the average earnings meth
Cd Is used, all net income in ex-
cess Of such average will be sub
ject to the tax.
II the inveSted-capital method Is
used, all net income above a Ger
tain percentage OF such invested
capital will be subject to the tax
until its net income Is at least 5
per cent Of its invested capital.
Whichever method Is used, an addi-
tional 5000 of net income is ex-
empt from the tax.
Status Of Moratorium Bill.
Bankers express far more than Or
binary interest in the proposed NOR
atorium on certain obligations of
persons in military service or train
ing. Both the National Guard Act,
which has already become law, and
the so-called Burke Wadsworth con-
scription bill, which has been passed
by the Senate and is being debated
In the House, contain an identical
provision extending certain of the
benefits Of the Soldiers and Sailors
Civil Relief Act of 1918 to the per-
sons who are called into military
service under these measures.
The 1918 act provides a general
stay OF all civil suits and proceed
ings against person in military
service. 1t further prohibits the
exercise Of any right or option
under an installment contract to
terminate such contract and repos-
sess the property except through
court action. Similarly, mortgage
foreclosures and sales may be stayed
and eviction or dispossession fol-
non-payment of rent prevented.
Two other bills, H. R. 10338 and S
4270, are currently pending in the
Military Affairs Committee of the
House and Senate, respectively
These bills re-enact substantially all
of the provisions of the 1918 act
and, In addition, will probably pro-
vide other forms of relief not in
cluded in the earlier act.
Assignment Of Contracts.
Chairman Summers of the House
judiciary Committee introduced H
r. 10464. This bill permits the as
signment to a bank, trust company
or other financing institution, of 9
contract, under which payments ag.
gregating $1,000 or more are due
or to become due from the United
States or any agency or department
thereof.
In the case of a contract entered
into prior to the enactment OF this
legislation. the assignment to be
valid must have the consent of the
Government department or agency
concerned. In the case of a con-
tract entered into after the enact.
ment of this legislation, no assign.
ment can be made If the contract
expressly forbids such assignment.
The objective Of the legislation i.
to facilitate the use of commercial
bank credit and other private credit
facilities by companies which re.
quire plant expansion or additions
working capital with which to han
die national defense orders. Use o.
these contracts as collateral fol
bank loans, is expected to put /,
large amount of idle money to work
The bill has been referred to tn,
House Judiciary Committee, which
Is expected to report it shortly.
Sharp Trade Gains Reported.
The governors of the Federal Re.
serve System reported yesterday
that department store sales IL
August In Richmond Reserve dis
trict, which includes Washington
SCARED IS per cent above August
year ago and in the first eigh
months Of this year were per cen
ahead Of 1899.
The report revealed an exception
ally sharp rise in sales in all II dis
tricts, the boards August inde'
reaching 100, highest for that month
since 1881, and nine points above thu
midsummer level. In August, 1888
the index stood at 80.
The IS per cent gain in this dis
trict is ahead Of an average of 10 PEI
cent for the whole country, while tn,
eight-month per cent rise com
pares with per cent nationally. Tn,
RICHMOND August gain led all othel
districts. Philadelphia being tn,
closest with Is per cent pickup.
Heard In Financial District.
Saturday sessions were resumed
on the Washington Stock Exchang
yesterday after the summer recess
Business was quiet, only one issu
appearing on the board, Washington
Gas Light preferred, which move
at 1851, up u point for the week.
Washington and Baltimore agen
cies of the Equitable Life Assuranc
l-l~