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

The new BANK RULE.
An Unfortunate Misunder-
standing Explained.
ST. PAUL MERCHANTS TALK.
Better and Safer Methods to
Be Encouraged.
CHECKS WILL NOT BE RETURNED
ST: PAUL MERCHANTS TALK.
CHECKS WILL NOT Be RETURNED
Jobbers Will Take Care Of
Customers Paper.
SOME PERTINENT INTERVIEWS.

| The GLOBE has printed from Gay to
day the commend of the state press Oh
the new rule of the st. Paul Clearing
| House association, relative to checks
and drafts. Some of these comments
| have been evidently conscientious and
! fair from the standpoint of the writers.
But with regret il has been noted that
there is disposition apparent in some
| quarters to diStort the facts and to
| prejudice the good name of st. Paul and
her merchants.
No one has sought to dodge the fact
that the action of the banks in this mat
ter Is open to the charge Of being arbi-
trary. More notice should have been
| given,say the critics. But neither has any
one, on the other hand, denied that the
move is in the right direction. Things
would have been better all around If the
rule had been adopted years ago. In
the East such rule is uni
verSal, and has been IN force
for many years. In the West a
custom mas grown up among merchants
and Jobbers of accepting almost any
kind of paper and depoSiting it in the
banks to the credit of the payee. Con-
seQuently there has been very large
amount of property ''in the air' from
day to day. These checks have been
floating forward and back from the
country to the city, and the money they
represent-bdt which they are not be-
fore being cO1lected-haS not been read
lily available for anyi purpose, either by
the banks or their patrons. Heretofore
the burden of this state of affairs has
been borne by the banks. Now it has
been shifted to the shoulders of the
wholesalers and jobbers.
Sentiment of JObbers.
A representative of the GLOBE yes
teaday made a canvass of the whole
salers and jobbers of st. Paul, to ascer-
tain the consensus of opinion regarding
| the new rule. Among the houses Wis
tied were P. Ii. Kelly Mercantile
company. P. R. L. Hardenbergh. Finch,
Van Slyck, Young IL Co., G. Gotzian 81
Co., p. j. Bo%lin, Lindekes, Warner
e Schumacher, Noyes Bros. & Cutler
Seabury & Co., Brown, Treacy & Co.,
Allen, Moon q Co.
AS result of somewhat exhaustive
conversations with the managers of
these houses, it can be stated absolutely
that the merchants Of st. Paul will take
as good care of their customers in the
future as they have in the past. While
all of the business men with whom the
reporter talked would like to see the
idea of the new rule carried out to an
amicable and satisfactory conclusion,
yet there is not mercantile house in
this city that will return check of a
reliable country customer because it is
drawn on local bank.
There is nothing of radical spirit to
be found among the merchants. One
gentleman put it in this way: 1--WE
recognize the right of the banks to
adopt and enforce such rule, but we
also MAINTAIN the right to do business
with our customers in the way that
suits US. The banks will not accept
and credit to our accounts anything but
checks or drafts payable in st. Paul or
Minneapolis. Those drawn on all other
points, except some drafts which may
be taken at the option of individual
banks, will be entered only for collec-
ton. Naturally, this will keep us out Of
the use of money due for from three to
ten days; but there is not a house in
the city that Is going to refuse to re-
ceive such checks, unless in exceptional
cases'''
Might Entail Hardship.
One of the most prominent jobbers in
the city expressed himself to this effect:
There are many cases where a Gus
toner lives several miles from a bank,
and he cannot travel to town to secure
exchange. His method of doing bus
iness is to send check in payment for
goods, and it would certainly he hard
ship on such q man to refuse to receive
his check. We simply cannot do it, and
l do not believe there is any firm in this
city that will return check from a re-
sponsibIe party"
The credit man of a firm that does
probably as much business as any in
the Northwest put his views in this
shape: 1--WE are having comparatively
little trouble on account of the new
rule. OF course, there are few who
exhibit hostility, but a little reflection
will convince these that the rule is all
right, and in the end will be better for
all concerned. Our most desirable Gus
toners have accepted the situation in
business-like spirit. As we have always
been willing to accommodate them, they
are now ready to reciprocate, because
they realize that stress of circumstances
has made 1t necessary for the banks to
work in closer lines"
George II. Freeman, president of G.
Gotzian IL Co., was willing to be quoted
as saying that his firm will not return
checks drawn on local banks, and has
never even considered the possibility of
such thing.
Comprehensive View.
D. r. Noyes, of the firm of Noyes
Bros. & Cutler, voiced the general senti-
ment when interviewed. He SAID:
"The action of our st. Paul banks as to
country checks seems not well under
stood by some of our friends out of
towL, aud of course interested parties
fan the breeze hoping for little
cheap credit by so doing.
''All the large cities, East and West.
have dropped more or less into the habit
of accepting customers checks from
all about and sending them through
their banks for collection, and this in
defiance of the fact that all sales are
everywhere made payable i'll current
funds where made. The cost to the