Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-08-12
1t W0RKSV VERY WELL
BUSINESSMEN GENERALLY ENDORSE
THE ACTION OF The BANKS.
How Certified Checks May he Used In Pri-
vato Transactions-OnIy Currency
Taken for Revenue stamps.

Clearing House Association to meet the
emergency caused by the currency
famine" and provide O medium OF ex-
change was well received by the public.
A few objectors were met on the street,
but the overwhelming sentiment was that
the association had pursued the wise,
conservative course. II was fully recog-
nized that the step was one for the mutual
protection of the banks and their Gus
toners. and the current expression in
business circles was The banks have
done exactly right"
Indeed, 1t was recognized that the sys-
TEN agreed upon has put the banks IN
stronger position thar they had been since
the financial depression commenced. Had
the drain OF the - lockers up" and OF other
cities upon Richmond's currency con-
tinued tho banks would have been CON-
PEELED to curtail their lines of discounts.
which would have been infinitely more Sc
rious in Its effects upon business than
scarcity OF currency.
THE fifty DOLLAR LIMIT.
By few. but only few, the S50-check
limit was misunderstood. These have an
idea that a deposItor could draw series
OF $50 checks or q $50 check each day
against his balance at the close OF business
on Thursday, the 10th, and they would be
paid IN currency. Not So however. Fifty
dollars, and $50 only. can be drawn out OF
balances. as of the 10th. The Clearing
House decision simply provided for each
depositor reserve in currency TO that
amount. Checks on his old balance,
minus his $50 allowed in currency, will be
certified and be payable through the
clearing house.
DEPOSITS YESTERDAY.
10
or which may hereafter be made, will be
subject to checks payable in currency un-
less the drawer of the check writes or
stamps across them payable rough the
clearing house" These words on check,
however, will be notice to the banks that
the drawer does not desire currency given
for it. Hereafter and until matters
settle themselves and moneg begins to
flow out tho banks will keep with their de-
posItors currency accounts, which Will be
separate from the check and draft ac-
counts and old balances. The new
check and draft deposits. however,
as in the case Of the old balances,
will stand to protect Clearing House
checks. AproDos of this explanation of
the readiness of the business. men to touch
elbows with one another and with the
banks. and of the approval by the com
munity of the course of the Clearing
House Association, 1t should be said that
the deposlting of currency went along as
usual yesterday, and that some OF the
banks received more than they paid out.
The PAYROLL PROBLEM
OF course, a phase Of the situation which
will cause some inconvenience to both
employers and employees is the disposlng
of the payroll problem to-day. Some OF
the larger manufacturers took time by the
forelock Yesterday morning, and sending
their clerks ont with certified checks,
gathered up oil the currency they could
find. These will pay their hands partly
in currency and partly IN Clearing
House checks. One gentleman who
employs a large number OF hands
said he would pay the girls in full IN cur.
rency ard the men half IN checks and half
in currency. Other manufacturers and
employers, who have weekly pay-rolls to
provide for, will pay altogether in certified
checks, good and payable through the
Clearing House" Parties to whom these
checks may be presented should un-
derstand that they are as good as gold.
seeing that they are not only
lein upon the drawers bal lance, but
are backed by the credit of the
bank. When bank certifes a
check 1t endorses tho drawer and the
amount of the check Is set apa-t from the
drawers balance TO meet it. Inconvenience
is also likely to be caused among the
manufacturers Of tobacco. cigarettes. and
cigars by the declInation oflthe Internal
Revenue Department to receive cernfied
checks for internal-revenue stamps
Deputy Collector Smith said yesterday, in
referring to this matter. that up TO Thurs
day evening he had been taking certified
checks for stamps, but on learning yester-
day morning of the action of the Clearing
House he went 10 the Merchants National
Bank. which is the government depository
here. TO see where be would stand If he
continued TO do so. He desired, he said,
to get such authority from the bank as
would protect him if he adhered to the
practice, but the president informed him
that the bank would receive no more GER
tilted checks taken for stamps.
Mr.. BRANoH's EXPLANATION.
Mr.. Branch, when seen in regard TO the
matter, said he wanted to put the bank
rjpbt touching il, and was glad the DIS
PATCH was looking INTO it. He would be
glad TO take certified checks from the
revenue office. but the government now
required the bank to make its remlttances
in currency by express. 1t would be
readily understood that il certified checks
were received on deposit from the govern
ment officials the rule compelling currency
remittanccs would drain the bank of its
currency.
Yesterday afternoon Mr.. Smith received
letter from Collector Brady instructing
him to stop taking certified checks. For
the same reasons that prevent the officials
of the Internal Revenue Department from
extending the accommodation mentioned
Postmaster Russell has also had to cease
taking certified checks for postage stamps.
NOT EXCITED BUT CHEERFUL.
There was no excitement about the
banks yesterday. and taking the situation
~ nj I rhpprfnI
premiums on currency in New York had
taken u heavy drop from the demand of
Wednesday, and sterling exchange was de-
cidedly weaker These two factors en-
phasize the impression that the present
financial stress cannot last long. They
point to an outflow of currency from its
hiding places and continual influx OF
gold.
The News In Petersburg.
The DISPATCH last night received the fol-
Loving special telegram from its Peters
burg correspondent:
During Colonel Brady's entire term as
Collector he has accepted certified
checks on the banks of this city in
payment for internal revenue stamps
and taxes, and the same rule. it IS
understood has been in operation at
the Richmond and Norfolk offices. To-
day, however, Collector Brady was noti-
fed by Mr.. John L. Branch. Prasi lent
OF the Merchants National BANK, at
Richmond, the government depository,
that hereafter no certified check would be
received, and that only currency would
be accepted at the bank tor all internal
revenue collections. This unexpected &C
tion rendered it necessary for Colo
mel Brady TO require ell manu-
facturers and taxpayers in future
TO pay in currency for stamps issued
to them. The certified check system
which has been so long in vogue IN
the internal-revenue offices ~ the district
was one of convenience both to the officers
and the tax payers.
ACTION OF LyNcHsuRG's BANKS.