The herald., 1897-05-14
OFFICE OF THE HERALD.
Los Angeles. May 10, 1897.

OFFICE OF THE HERALD.
Los Angeles. May 13, 1897.
Late disclosures In banking circles DEM
onstrate the necessity OF q radical change
in the method of payment OF checks drawn
upon the bank by deposltors, says New
Orleans writer, who asks II It is not feasi-
BILE for the clearing house to make
change. In reply. the Bankers Monthly
says that the English custom, so far, Is
the only one in practice that affords any
security to the drawer. 1t Is called the
cross, check: that Is. when checks are is
sued with the intention that they are not
to be cashed by the paying teller. but are
to be deposited in another bank for col
lection through the clearing house, red
line Is drawn with Ink across the face of
the check from the left hand corner to
the right. This gives warning to the teller
not to cash 1t. except through properly
accredited bank or banking house. Col
lections would be simplified and protected.
and collectors would be unable to cash
checks that are issued in payment of ac-
counts. The present system would In no
wise be changed, other than the introduce
tion of a crossed check. There would be
two kinds Of checks In circulation-a
"cross' check. collectible only through
properly accredited channels, which would
be a guarantee that the funds would go
to the party to whom 1t was intended,
and the ordinary check, payable over the
counter. Many checks are issued to the
order of "bllls payable" These are col
lectible over the counter and the funds
may never reach their intended destina-
tion. The paying teller cannot refuse the
cashing of such checks, unless he has very
great reason to believe the dishonesty of
the party presenting them. The new
method would work no hardship upon any,
one and prove of incalculable value to
the merchants and to anyone making pay
ments with checks.
Bank clearings for April according to
Bradstreet's, make a rather disappointing
showing. following those of March, which
showed the first monthly gain over the
preceding year for twelve months. The
less favorable showing in April than
March is partly explainable by it's having
more holidays this year than last In sew
eral states, and also by there being one
business day less than in the month pre-
ceding. But It is to be remembered, and
this is rather to the disadvantage of the
present April exhibit, that the April total
for 1897 shows falling off from the total
In March. while In 1896 and 1895 the April
totals showed gains over those Of March.
Total clearings at seventy-three cities for
April aggregated $4,OS5, ,313,1l7. a decrease
from March this year Of "a per cent. from
April a year ago Of 46 per cent, and
falling of from April 1895, of 38 per cent,
but gain over the April total, 1894, of 10
per cent. While April this year showed a
decrease Of "a per cent from March. it is
OF interest to note that April a year ago
showed a gain over March of Al per cent.
and In 1895 Of SIS per cent. For the four
months total clearings aggregate SIG, 49,
$50. O.lS3. a decrease of s.s per cent from
year ago, but a gain Of 2.Sp per cent over 1895
and Of 10 per cent over 1894.
The Metropolitan Railway company has
Incorporated at Louisville. KY, with a cap
ital of $1,0o000o. 1t will operate cars by
conduit electric system or by compressed
air and will have $50 miles of street rail-
road.
The committee on banks of the Connec-
ticut legislature will report in favor of an
additional bank commissioner, whose duty
1t will be to inspect the affairs of building
and loan associations and mortgage in
vestment companies. The salary will be
825O0 and $500 for expenses, which is the
same as the bank commissioners, and will
be collected from the companies examined.
Judge Hanford of the federal court at
Seattle, WASH, has granted an order in
reference to the Front-street cable road
that unless $4,000 outstanding receivers
certificates OF the road are paid by July
LIST the road shall be sold, the minimum
price being $4,000. The outstanding bonds
Of the road aggregate about 100000, Of
which the German Savings and Loan So
ciety Of California hold about 100000
Debts aggregating $4,000 will have to be
paid before the bondholders receive any
thing. The property has never been con-
sidered worth more than $500 900, and the
Bond Buyer says that in its present condi-
tion It would not bring one-fourth of that
amount. Street railway men say the prop
erty will be q fine one when business i'm
proves.
At the San Francisco stock and bond
exchange yesterday. Hutchinson Planta-
ton sold at 1917, Spring Water Valley at
9S, Alaska Packers association at 1884, San
Francisco Gas at 21a, Bank of California at
23Sh and Spring Valley Water per cent
bonds at 100A.
Insurance
The Knoxville (Tenn.) fire swept through
ten 16-inch fire walls, two double 16-inch
walls and one double Pinch wall. Knox
willie heretofore has been the most profita-
BILE southern city for its size and enjoyed
II about $l000,000, with 5000, 900 insurance.