St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-26


Paul banks, but merely what they paid
country banks to collect.
"Still the kick did not originate at
st. Paul. Chicago, Omaha. Denver,
Sioux City, all led in it. st. Paul banks
did not go into it until they had lost
heavily-one bank over $1,000 in few
days-by the failure of country banks
before collections got there. Mime
apoiS banks were, it was understood,
as fully in favor of the step proposed as
st. Paul banks were. Their Bank of
Commerce adopted it, and their clearing
house appointed a committee to arrange
it with ours. 1t is SAID that the Nicollet
bank, of Minneapolis wouldn't come
into it, and so it happens that it is not
yet general. Hundreds of the best
country banks heartily approved the
plan.
Now, how does it work? Every job
Der here, so far l know, asks his Gus
toners kindly to send exchanges but
accepts country checks, if sent, same as
usual, only asking his customers, Tor
whose convenience they are sent, to
protect him until collection is made.
This matter, to the individual customer,
is small one in nine cases out OF ten.
He is willing to Oblige his good friend,
the iobber, and his home bank gets the
benefit of little sale of exchange. 1t
is the wrong representation, the inter
ested effort to make a little cheap cap
ital, added TO the hot weather, which oc
casIOps most of the racket. Every
banker and Intelligent business man in
the state knows that the principle is
right, and he also knows that his st.
Paul jobber is his good friend, and will
do his best for him. 1t is not wise to
make too much of small matters just
now. We all want friendly help and
consideration. but, of course, all these
little 'frictions' will wear down speed
lily.
Not a ST. Paul jobber asked for this.
A score of them tried to prevent it.
Why go for them% Let us have peace,
and plenty of good remittances, how
ever they may come"
Explanatory Circulars.
Questioned on the point, The gentle
men seen stated that circulars had been
sent out by nearly every house in town,
notifying customers OF the bank rule.
Some houses stated in their circulars
that they could not longer receive checks
on local banks. Others simply re-
Quested that their patrons send eX-
change, as specified in the circular of
the banks. In nearly every circular the
request is also made that money or
nrHprS hQ xrIlQ
there is no bank. These circulars
have hardly had time to reach all coun-
try dealers as yet, so that the ultimate
effect cannot be told. Some houses, as
for instance, Finch, Van Slyck, Young
q Co., have for number of years made
1t rule for customers to remit by
exchange or draft on certain cities.
Other houses. since the new rule went
into effect, have offered a discount of
one-tenth of one per cent where remit
tances are made in compliance with the
rule. Several establishments reported
that already there is an appreciable
decrease of checks on local banks, while
others say there is 10 apparent change,
and they look for none for some time to
come.
An Analysis
of all the expressions made to the inter
viewer gives these results: st. Paul
merchants consider the new rule Of the
banks right in principle, but put into
practice at an unfortunate time.
Thoughtful country bankers and mer-
chant admit the move is right, while
contending they should have been given
more time to prepare for the change.
All hands express the opinion the rule
if lived no to. will benefit the rural
banker at once, by giving him legitimate
exchange business, and will rebound to
the welfare of the country merchant
in establishing safe and cor
rect methods OF doing business.
There is some timidity in GER
tain quarters, but business men gen.
orally evince a disposition to stand up
to the rack and do business as fear
lessIy as of yore, while endeavoring to
secure adoption of the new system. No
reliable mans check will be returned.
st. Paul jobbers Will handle and care
for their customers paper as readily
and as Loyalty as heretofore. No coun-
try dealer will be given the worst of
it" by his wholesaler or jobber. The
people who mistakenly seek to make
temporary capital out Of this step
of the banks toward safer methods
are but preparing for themselves mess
of gall and wormwood. st. Paul mer-
chants can and will now, as always, do
as good or better by the country dealers
as the merchants of any city which
seeks trade in this section. And the
country merchants know it, and are
showing their faith, in a vast majority
Of instances. by standing true to the
men who have dealt with them honestly,
generously and in the business spirit of
give and take.
This unfortunate misunderstanding,
fostered for sinister motives. Is rapidly
working out-and working out right.