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SALES TAX
STARTS ON SECOND FRONT. taxes at the coming session, whether the treasury will tide over the emergency caused by the depression by further large-scale, long-term borrowing No decision has been reached on this point or as to the form program might take, it was said, though Mellon is understood to have framed the general
MAY TAX LUXURIES. Elimination of general sales tax which would apply to all retail purchases does not that this form of tax might not be recommended in a. few instances. A tax on some luxuries might be recommended, for instance. There is now sales tax on tobacco and cigarettes. and states have sales taxes on gasoline The wartime "nuisance" taxes on theater tickets and soft drinks were forms of sales tax. Some of these may be suggested, but not a general sales tax such as proposed by Reed Any treasury tax program, it believed. will also embrace slightly increased sur-tax rates on the wealthy. Mellon, however, will oppose any sizeable increase on the theory that too high taxes of this character their purpose. HAS SAVED MUCH. Discussing proposals for suspending payments on the debt, treasury officials said Mellon's policy of reducing the debt as rapidly as possible had saved the government much money. The cost of meeting interest payments on the debt has been greatly reduced. Officials contended it would be wise to continue the payments even if necessary to borrow funds to do 80. Money can be borrowed by the government now at lower rate than it pays on bonds issued during the war. Mellon reduced the debt from around $23,000,000,000 to low point few months ago slightly over $16,000,000,000. Now new borrowings by the government have sent the total up somewhat. The peak right after the war was $25,000,000,000.
MORE ABOUT
T. B. McGrath, Jr., started CHICAGO, Sept. 28 (UP) a run in his own bank today and made history thereby. He wrote all of the customers the Mayfair State Savings bank. owned by him, that the bank wasn't making any profit and that he had decided to close it. He added that all depositors had better come and get their money because he was going to shut the bank on Wednesday of this week. State Auditor Oscar Nelson said it was the first time in the history of the United States that a bank was being closed voluntarily, with full payment to all depositors before closing. HOW IT HAPPENED.
The tall, slender McGrath, called by one of his depositors the "most honest man in the world," told the story of the Mayfair bank, thus: "I fell for this bank business and now I'm going to fall out of it. I'm closing simply because it isn't profitable. Last April we had deposits of $2,000,000. Then there was flurry of bank failures and our deposits dwindled to $600,000. Other banks asked depositors for a written notice when they wanted to withdraw money. My bank did not. After all, it was their money. SAVING MONEY. "Last April we had 400 empty safe deposit boxes. Now they are all filled by people who withdrew their money from the savings a.ccounts and put it in the safety vaults. Last April my safety deposit box man sat around all day long nothing to do. Today he is opening one box after another all day long for housewives, who come in and take $2 and $3 at time. "Banks all over the neighborhood failed. My depositors withdrew their money from my bank because they were frightened. I can't blame them. 'But I'm no philanthropist. The bank is being closed for good. I've learned my lesson. I'm banking attorney. made my money representing bankers and then was fool enough to become R banker myself. I'm going back to my legal practice."
