Evening star., 1943-07-12
Banks Seek 10 Serve
As Depositaries for
Withholding Tax
Rx EDWARD c. STONE.

RlCQmOIlQ IOT dutiioiAty w oSe 90
depositaries and financial agents OF
the Government for receiving from
EMPLOYERS income taxes withheld at
the source on wages, in accordance
with the new tax payment regula-
tions, it was announced In the f1narl-
cial district today These tax funds
will be kept In separate accounts.
and it is believed the new service
will be of wide convenience to the
public.
The banks have received extensive
instructions from the Richmond
Reserve Bank and the Treasury re-
g2rding the service. Under the new
Revenue Act, every employer who
vithholds more than 500 during a
calendar month must pay the
amounts withheld within 10 days
after the close of the month to a
qualified depositary. Any bank re-
ceiving these funds must transfer
them to the Richmond bank for
the account OF the treasurer OF the
United States as soon as they reach
$4,000, although only one payment
a day is required.
Capital banks are to have special
form receipts to give to all employ
ers when deposits are made. The
banks will receive full compensation
from the Government for the cost
of the service, two different meth
ods Of payment being offered. The
new service, requested by the Treas
ury, can be terminated by the Gov
ern,nent or by any bank at any
time, efter proper notice.
The handling of income tax pay
ments is in line with other services
added during the war, among them
rstion-coupon banking and the
cashing of thousands of Govern
ment checks every month, regard
less of whether the holder has an
account with the bank where it Is
presented. The prediction was
made today that District banks will
be handling large amounts of these
withheld tax funds very soon. They
will have no effect on bank deposits,
1t was explained.
Sales Jump 11s Per Cent.
In a special review OF the first
four months of this year, the Fed
eral Reserve Bank of Richmond re-
ports that sales of umbrellas and
parasols advanced 118 per cent as
people prepared to do more walk
ing on account of the gas shortage.
Jewelry sales rose 36 per cent,
watch sales to inductees into the
armed forces, engagement rings
and articles for wedding presents
leading the causes for the increase.
In spite of crowded trains and
buses, travel increased sharply and
luggage sales rose SO per cent over
last year.
The stores which have restau-
rants or tearooms reported Al
per cent increase in 1943 business,
due in part to many housewives
entering business, to an influx of
visitors In cities near Army camps
and to attempts to save food ra-
tioning points by eating out.
The only declines of consequence
were due to inability to obtain ade-
auate stocks of merchandise, the
report added. Refrigerator and
other major household appliance
sales were off 80 per cent. Fur
niture, sporting goods, radio and
many other sales were off mate
rally.
Insurance at All-Time Peak.
The Institute of Life Insurance
has reported that total life insur-
ance in force in the United States
is now s133,OOO 100000, an all-time
record and up per cent in the
half year.
Total assets of all companies at
the end of June were about $685.
O0O,0O0000, an increase of 3 per cent,
with Government bonds accounting
for 80 per cent of the total.
More than $5,000,000,000 worth of
War bonds have been sold in the
10 months since Pearl Harbor to
l5.OOO,O 900 American workers by life
insurance agents, the same report
said
Rauman on Special Committee.
Chaplin B. Bauman, president OF
the Oriental Building Association,
received word today of his appoint
ment as a member OF the 1943 At
torneys' Committee of the United
states Savings and Loan League.
This group is composed of A law
yers for building and loan asso-
ciations chosen from all parts OF the
cbuntry.
The chief function of the COM
nittee is to act as clearing house
fbr matters of particular interest
tb the attorneys in these associa-
tions. They will also advise with
the staff of the United States
Savings and Loan League on the
Legal Bulletin which is published
periodically by the national organi-
zation.
Suter Enters Naval Service.
Charles F. Suter, assistant general
agent of Berkshire Life's Washing
ton Office, has received appointment
as lieutenant q. g. in the United
States Navy and has reported for
duty at the Naval Air Station at
Quonset Point, R. l., for induction.
Mr.. Suter has been with the Berk-
shire Life Insurance Co, for eight
wears, has been active in the work OF
the District Underwriters Associa-
ton. recently being elected vice
president and director. He has also
been a leader in the Junior Cham
Der. of Commerce.
9, New Highs On Exchange.
Mergenthaler Linotype reached
4ol, on the Washington Stock Ex-
change today. new l943 high mark.
tie market closed with 40 bid and
90 asked.
Washington Gas Common hit a
new 1943 high point when 10 shares
SOLD at %, up from 21h.
.yNashington Gas IS preferred also
entered new high ground at l061s.
a. IO1, Washington Gas $3.50 pre-
fe-red again stood at the high for
thee year.
-Ealf Year Gain Ia Per Cent.
Department store sales In the Fifth
District in the first half year we're
14per cent ahead of 1912, the Fed
erS1 Reserve Board has reported.