The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-01-13

Tho exfent to which bank>checks are made
% nerform the functions o. money 10 Ens'
ia Go !, matter OF frequent surprise 10 our
h.ankers A check will circulate and not De
,,rassnfed for fnsi payment until 1t has oeen
eenvcred ALI over with names, and been tne
,ssaans of liout1stIng debts to an aggresse
~ ,nanv times its sasue. Thus man ora US
S,e nhact a., bank for say ten poanas,
:" Sa,ue received for, perhaps, coat. Ahs
..osI.Sealer. after seeing that the caaeex anu
s,anafnre are seod, in place OF passing u 10
h,s bankers, al the close Of BUSINESS, uses IL
~ We ~ the ts;,or. who may drop in with MS
h;li The sztier uses 1t 10 pay so'he otuci
ohl;pation, and so the check passes ion.
hand 20 hand, until, as we nave stateo, ~
liouidstes very large amount on luoen.eu
ness, Sometimes, indeed sfeqaently, cnahEe
l. given and received TO make up the deu-
s.;es NJ amount. as In ordinary transac-
,;ons Sometimes it happens that the cheek
TaIjs into the hands Of unsafe financial par
t;as and in that case the banS has little or no
tronbIe in collecting the ansount from some
of the nreyious endorsers. The advantages
IF the plan were that it really wiped OUT In
s,chtedness by the simplest of oil forms.
II vas 10 meet want not altogether sup
nl;ad by the above system that what Is known
nc "ibe Check Bank Of London was
formed. about year ago. Its leading lea
tures are the sales of checks TO customers IN
y manner that seems to be cross between
an ordinary check book, certificate OF de-
nosit and q post-office order. The first years
proceedings were chiefly preliminary ana
tentative. and no great progress was attaih-
able.
The advantages of the check.bank system
are that tber allow the payment OF The small.
EFT or largest sntns without the medium OF
coin or bank-notes. The report says:
awe have provided what never existed
before-an iDdeieasibe instrument OF cur
repcy which, when completed at Will Dy the
signature of the holder, is received every
where and by everybody as cash, even When
the drawer Is stranger wholly unknown.
AS no Check. Bank check can be ootalned
from the bank until the m6r'mu'a anountior
which it can be filled up, and which IS
Stamped on its face, has been deposited,
checks on this bank differ from those on all
Others in this most important particular: that
they are certain TO be paid on presentation.
No inquiry into the means or standing of the
rerson who draws them is necessary they
can be taken in payment and pass from one
hand to another with the same confidence,
because they haze the same undoubted value,
as a Bank-oi- England note for the same
amount"
Another advantage to the check. bank
system is that its checks do not require TO
be Immediately drawn out to prevent them
from being covered by subsequent checks,
in " hich case the loss falls on the holder. A
check bank, on The contrary, may pass from
hand to band or may lock up in drawer its
checks with the certainty that they would
be still as good as ever, because the money
can only be drawn out by the presentation of
tia; document.
1t is stated as an interesting feature Of the
new Understanding system that it is rapid
Iy coming into operation and acquiring bust.
ness in London. 1t does not so much COM
pete with the old system, but it rather i'm.
proves on IT, For instance, it is extensively
employed by officers Of the army and navy
clubs, no interest is charged, and the result
is that the system is rapidly coming into use.
The new system is chiefly interesting as pre-
senting new points of the financial methods
OF use in England, and does not seem likely
10 find much favor in this couutry.-Nelc
York Economist