St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-22
THE NEW CHECK DEAL.
ACTION or THE 81. PAUL BANKS
MAKING TROUBLE.
A PROTEST IN CIRCULATION.
Serious Interference With Trade
Liable to Follow-St. Paul job
bers Considering the Question
Liability OF a Rebellion From
the Country

Liable to Follow-St. Paul job
bers Considering the Question
liability OF Rebellion From
the Country.
The action of the st. Paul banks In
refusing to accept country checks on
deposit, but taking them for collection
only, is provoking good deal of discus
sion both in and out of the city.
In ST. Paul it is especially discussed
from the standpoint that the Minneapo-
lis banks have not joined in the move
ment as was expected. In the country
the following telegram may be regarded
as straw:
ST. CLOUD, Mimi, July 21.-Business
men mere are this afternoon signing a
remonStrance against the business
houses OF ST. Paul who decline to accept
Inc personal checks of business men
here Ill payment of goods. The remon-
stronce further agrees to discontinue all
business relations with st. Paul whole
sale houses until they return to former
business methods, and buy only III Min
neapoliS.
The Moorhead News take up the mat
ter in this style:
st. Paul and Minneapolis banks have
come together and hit upon a plan to
save the credit and restore the finances
or the state to normal condition. The
main feature OF the plan is the agree
nlent TO refuse checks on all banks in
the state outside of those two cities. 1t
VIII compel every business man in the
state, except those living in the Twin
Clues, to take the trouble of sending
hnt IL
press Office for draft or money order,
and paying the exchange or fee when
ever he desires to pay bill contracted
III those cities instead of enclosing
check at his desk as heretofore, an i'm
position they all will appreciate as
showing. all accommodating spirit worthy
OF Its source. If the country merchants
and business men ehould show their
resentment by patroniZing the postof-
hceS and express offices, a change back.
TO the old system would be a speedy
result.
Other country comments are unfavor-
able to the new plan. 1t was. perhaps,
hardly to be expected that the country
would cordially indorse the movement.
At the same time there seems to be no
reason why the country should espe-
eially object so long as their city CORE
spondents are willing to accept the
checks as before. and this, we under
stand, Is, as rule, being done.
1t is the st. Paul merchant who re-
ceiyes the checks who is the most in
eonvenienced. Under the new rule the
ST. Paul merchants must wait until the
checks have actually been collected be-
fore the sums called for are placed to
their credit, and many thousands of dol
lars are daily unavailable where before
the sums would have been serviceable
for Immediate use.
From the bank side it is urged that IN
many cases much time and expense is
involved in making the collections and
that their customers are III reality. OBJ
tanning, in the aggregate, large sums
for immediate credit to their accounts.
while the banks are taking the risks
and losing their interest besides.
That the matter, however, is two
edged is evidenced by the following
comment of the st. Cloud Journal
Press:
The country banks are as solid as st.
Paul banks, and this action of the latter
OugnG To Ue treated WITH Une contempt
it deserves. The treatment is very sim
pie, and the cure certain. The Mime
apolis banks still honor checks from
outside banks. Minneapolis has just
as reliable and well-equippedw whole
sale houses as has st. Paul. If every
business man in Minnesota and the
DakOtas will give their patronage to
Minneapolis exclusively for a few
weeks, the st. Paul banks will get off
their thigh horse'' with a suddenness
that will be refreshing. If st. Paul
wants to be exclusive, why let the old
fellow severely alone.
The action of the st. Paul banks
was not designed as a reflection upon
the credit of any one, but simply to
change system which was imposing
an unwarranted expense upon them.
The practical workings of the new
scheme as developed above are worthy
of consideration by both the banks and
the jobbers.