Savannah courier. (Savannah, Tenn.) 1885-1979, 1897-11-26
SHIPMENT oE MONEY.
reasons why Banks Prefer To Remit
Funds by Express.

The fact that many southern and east
crn banks have recently used the reg
istered mail service for the transmits
sion of currency to and from the bank
ing centers of the country has caused
considerable comment. The reason is
found in the inability of the banks to
secure this year, through the treasury
Of the United States, the benefit of gov
eminent contract rates from the ex-
press companies. Prior to this year the
treasury gladly shipped currency to
banks at government rates, in return
for gold. In the last contract with the
express company, however, clause was
inserted by which such privileges should
be afforded to the banks only when the
treasury needed gold.
The secretary of the treasury having
decided that the treasury does not need
gold now, the banks cannot participate
in the advantages Of the government
contract and to save transmission
charges country bankers have directed
their city correspondents to make ship
ments intended for them by registered
mail.
The cashier of large national bank
which ships many thousands of dollars
every day to its correspondents all over
the country, in speaking about this mat
ter with a New York Evening Post re-
porter, said:
s.The conservative banker still prefers
10 send money by the well-known ex'
press companies; but, to save expense
since the government refuses to remit
for the banks any longer at government
contract rates, the country banks are
apparently willing to take the risk OF
transmission by registered mail witt
the guarantee of an insurance com
pany's policy for its safe delivery Not
witbstanding, however, the registration
and insurance, the risks OF sending
large sums of money by mail are very
great. A package of currency which II
forwarded by the registered mail de
partment of the postal service has ne
distinctive mark indicating its value;
pencil receipt is given for 1t just th'
same as for any ordinary letter or pack
age of merchandise. The package o
money is thrown in with packages o
merchandise of all sorts, and no NOR
care is taken of ii than is taken with
box of shoes or package OF gloves
THE registry clerks receipt is not doc
ument that is us well known or ms salts
factory as the receipt of the receiving
clerk of an express company, ana IN cas-
of the loss of the package, the delay i
The recovery of the money is intermin
able.
"On the other hand, the express com
NAMES locate missing packages 0
money or make good the loss promptly
without technicalities or delays. The
arc responsible, and banks run no ris
in shipping by them. Their employe
are chosen solely on the ground OF apl
ity and trustworthiness, and they ar
therefore more likely to be more az
curate and prompt than postal ell
ployes. who owe their places, more
less. to politics, Notwithstanding IN
civil service examination. While 1t
true that by insuring money sent b
registered mail there is some guarahlt
against loss by non-delivery, it is equa
I, true that there is considerable ris
of loss If the insurance company stah'
on technicalities. The slightest II
formality in the observance of the tern
of an open policy issued by an insurah'
company renders the policy invaild, an
would in the case of missing pacKas
cause the loss to fall on the conslgno
The technicalities to be observed by
RENTING bank in sending money [
registered mail when the delivery oil u
money is insured by one Of the local Il
surance companies are very great col
pared with the simple but safe metho'
of the express companies, ana uh'e
some new regulations are made by Il
postal authorities for sending req
tered mail conservative New York BAN
will certainly prefer to ship by c
) press"
The cost of postage and insurant
says the Post, is much less than u
usual express charges at what a
known ms bankers rates. Few Nc
York bankers, however, would rem
money in that way, unless they we
directed TO do so by their correspon
ents. They would rather ship it by
press, even though it cost more to do
because they consider 1t the safer wa
Mn.