The Waterbury Democrat., 1944-02-16
Confusion OverIncome' Tax May Bring Change
Nationwide Support for Tax Commission Plan MOunt- ing as Result of Complicated, Ever Changing Rules

him what was wrong with the money of this country. But bank cheeks constituted our principal money and If credit man or any, one else accepts 8 check in pay ment. of a bill, he feels he has the right to assume he will receive the amount of money or credit called for on the face of the check. Nine times out of ten he is right in his assumption. What happens the tenth time? Well, some banks in certain sections of our country have developed the practice of charging an exchange charge for the payment of cheeks drawn by their customers on the account their customer keeps in their bank. They do not make the charge against their customer. That might prove a bit embarrassing. Their customer might for instance want to know how the good dollar he de- posted in their bank becomes a de- preclated dollar when he wants to get 1t out. Instead, the charge is made against the creditor to whom their customer has sent his check or if not to the creditor against the creditors bank who has forwarded it for collection.
 'Now this organization and every right thinking individual wants sound banking system but there is no Justification nor need for dis counting the nations currency to attain a sound banking system. If these banks who make exchange charges need more revenue, then charges to the depositors they serv- they should increase their service ice or what is to be more desired, increase their local loans or make other sound investments. If they increase their service charges they will be competing for their custom CTS patronage and unreasonable service charges will be disposed of through loss of business. It is just as sound for the Treasury Depart ment to tell a person that because it may cost the Treasury penny, for example, to print dollar bill the dollar bill will only be redeem able at 99 cents. These state banks contend it costs them money to handle these accounts and particu- larly to create proper balances in cities where their checks are clear ed. That is just as true as the fact that a piece of string costs your grocer money but he can't very well directly charge you for it and re- tain your trade. It is 8 part of his cost of doing business. Incidentally, never heard of any of these banks offering to pay premium to any of their depositors for check depos- ited with them and drawn on a re- serve city or some other place where they may have had the need of correspondent account.
 "The whole principle of charging exchange on cheeks is bad. It tends to destroy the function of our na- tional currency bank checks This organization and its members will continue to fight and protest this form of taxation. We urge our members to stand firm in their in- sistence that checks they receive clear at par. Tel your customer to take back his check that he send to you and which his own banker intended to discount and ask your customer to have his banker tell him why there is difference of his account. If this practice of ex- change charges continues to grow you can readily see where 1t will lead"