The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-01-28
CHECKS In RETAIL BUSINESS.
Sections of the Country Wherc Credit
Is Most Largely Used.

Washington Special to Chicago Record.
The Controller of the Currency during the
last year has been engaged in very inter-
esting study of the use Of checks and other
commercial paper in the retail business or
the country While the result of his inves-
legations is not complete or satisfactory
as desired still it furnishes ma terial worthy
the consideration of political economists
and the trainers of laws designed to re-
lieve the financial distress of the country,
as well as the legislators who are called
upon to act upon them. The Controllers in
vestigations were limited to the national
banks, of which there are about 5000, and
blanks and set of questions covering the
information desired were sent them. Re-
plies were received from 2,465 banks which,
although in some respects not as compete
as desired throw light upon important
phases of the of credit instruments, ana
the results as whole justify the inquiry
Inasmuch there was no way of getting
anything like complete returns of retau
transactions throughout the country, the
Controller selected few trades, which, in
the aggregate, represent the largest per-
centage OF retail business Those were Sc
lected the purchase of whose products rep
expenses for living The inquiry covered
god, silver coin and gold and silver GER
tificates, treasury notes, checks and Ather
instruments of credit deposited with nation
al banks by retail srocers, retail butchers.
retail clothiers. retail furniture dealers and
community nearest the c.ose of the fiscal
year ending June so, 1894. The cashiers of
period of credit granted by the retail mer-
chants in their locality, whether it was Gus
tomary for employers to pay wages by
checks, and if so did the employees, as
rule, present these, checks for payments at
the bank or have them cashed by mer-
chants.
Owing to a slight misunders landing the
blanks sent out id not cover all classes OF
transactions as fully as was intended. but,
y1afv ffCtn ling ia
are fairly representative of the character
of the. circulating medium of those places
throughout the country which are sufh-
GENTLY developed to have national bank
A large part of the trade concerning which
there are no returns IS IN me smali e ioa,
banks, and in those places most of 1T is
done on the basis of book credit, the farm
with it's value on the books of the dealers
and securing their supplies on the basis OF
that credit. In these transactions very lit
tie money is used, and SO far as money is
amount of credit, in retail business;
been received from State and private banks
throughout the country they would show
used If the $500 State and private banks
did one-half as much business as the ma
onal banks the total ,d Ia OF 20 o nef tai
and this is about two-thrds of the average
daily expenditure in retail transactions
throughout the country estimated by the
Commissioner of Labor. 1t is doubtless
true that the returns from these banks
would more largely increase the per cent.
of credits than the per cent. of money in
the returns, for they are mostly located in
parts of the country where credit seems
to be more largely used.
The cashiers of some of the banks in
making their returns stated that the per-
centage of checks used in other kinds of
retail transactions is much larger than
in those for which returns were obtained
In eight banks in Pennsylvania, for exam
pie, there were &c. S7 in checks deposited
by dealers of the kinds specified in the
circular and $50,428 in checks deposited by
other classes of retail dealers. Instances
of this kind arise largely from some Pc
cular character Of the place. like a pre-
dominance of some particular trade. and
tend to swell the proportion of checks
used. The amount of retail payments which
the returns cover was in round numbers
81, O0O, 600. OF this amount $50 per cent.
was in checks and store orders and Al per
cent in various kinds of money.
In the following statement are given the
ten States in which the percentage of
money used in the retail trade is greatest: