The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-10-16
MONEY by MAIL.
Reasons Why Banks Prefer to Remit
by Express.
From the New York Post

rency to interior points and particularly
to the south and west, by local banks
this fall Is the great extent TO which the
registered mail service is being used for
that purpose instead of the money being,
shipped by express, as was formerly the
general custom. The reason for this as
the inability of the banks to secure this
year through the sub-treasury the ben
eft of the government contract rates for
the eXpressage. As a result of that the
banks have had to pay what are known
as bankers rates to the express COM
panies, which are two or three times as
great as the government contract rates,
or ship their money by registered mail.
The course of the treasury in respect
to this matter has been explained from,
time to time in the Evening Post so far
as any explanations could be obtained.
Heretofore the treasury gladly gave to
the banks the privilege of shipping cur
rency at the government contract rates,
or rather shipped the currency for the
banks at the government rates in return
for gold deposits. A clause, howeVeb,
was inserted in the contract with the ex-
press company when 1t was last made by
which such privileges should only be ar
forded to the banks when the treasury
needed gold. The discretion in the mat
ter apparently rests with the Secretary of
Treasury, and he has seemingly decided
that the treasury does not want gold now
Consequently the banks cannot have the
benefit of the government contract rates
for eXpressage, although bankers gener-
ally seem to think 1t would be better for
the treasury always to take gold when il
can without loss. The treasury ruins,
however has not helped the express com
panies very much, because nearly all the
country banks to whom money is remit,
ted, and who have to pay the cost of
transmission direct their New York cor.
respondents to ship the money by regis
tered mail and insure its safe delivery in
one or other of the companies which make
a speciality of that business.
The cost of postage and insurance is
much less than the usual express charges
a what are known as bankers rates. Few
New York bankers however, would re-
init money in that way, unless they were
directed to do so by their correspondents.
They would rather ship it by express, even
though it cost more to do so, because they
consider it the safer way.
If money is lost by an express company
during transmission the loss is promptly
made good, whereas, banks RS say, it takes
a long time, and is a troub, esome task, to
recover the amount when the money is
lost in the mails. The government is not
responsible; it only promises TO take great
er care of a registered package, for which
the registration fee of eight cents is
charged; IL cannot or does not guarantee
it's delivery or reimbursement in case of
loss. The cashier of large national bank
which ships many thousands of dollars
every day to its correspondents all over
the United States, in speaking of this
matter to-day, said
1.-THE conservative banker still prefers to
send money by the wel-known express
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 regis
tered mail, with the guarantee of an in
surance company's policy for Its safe de-
livery Notwithstanding, however, the reg
istration and insurance, the risks of send
ing large sums of money by mail are very
great. A package of currency which is
forwarded by the registered mail depart
ment of the postal service has no distinc-
tive mark indicating its value pencil re-
ceipt is given for it just the same as for
an ordinary letter or package of merchan-
disc The package of money is thrown in
with packages of merchandise of all sorts,
and no more care is taken of it than is
taken with a box of shoes or package
of gloves. The registry clerks receipt is
not a document that is as well known or
as satisfactory as the receipt of the re-
ceiVing clerk of an express company, and
in case of the loss of the package the de-
lay in the recovery Of the money is inter
minable.
For instance, few years ago a south
ern bank ordered from it's New York cor
respondent $4,000 in currency, the money
to be sent by registered mail The pack
age was put, or supposed to have been
put, in a certain through pouch, but when
the pouch was opened in the southern
postoffice in the presence of the president
of the bank, who was anxious about the
arrival of the money, the package was not
there. InYestga tion by the pOstoftice au-
thorities failed to discover its where
abouts, and the insurance company which
had issued a policy guaranteeing its safe
delivery was no more successful, and 1t
was long time before the bank was re
imbursed for the loss. The inconvenience
caused to banks by the nOn-recelpt of
money on time could not be estimated. In
some cases, as in times of panic, for IN
stance, the delay might be fraught with
very serious consequences. A year or so
after the loss of the money referred to
other missing articles were traced to
certain dishonest postal employe, and the
secret of the missing money package was
then solved by his confession.
ION the other hand, the express COM
panies locate missing packages of money
or make good this loss promptly, without
technicalities or delays. They are respon-
SiDle ana banks run no FISK III SHlppiiS
by them. Their employees are chosen sole
" on the ground of ability and trustworth-
mess, and they are therefore more likely
to be accurate and prompt than postal
employees, who owe their places more or
less to politics, Notwithstanding the civil
service examination. While IL is true that
by nsuring money sent by registered mail
there is considerable risk of loss If the
insurance company stands on TECHNICAL
ties. The slightest informality in the OBJ
servance of the terms of an open policy
issued by the insurance company renders
the policy invalid, and would in the case
of a missing package cause the loss 10
fall on the consignor The technicalities
to be observed by renting bank In
sending money by registered mail when
the delivery of the money is insured by
one of the local insurance companies are
very great compared with the simple but
safe methods of the express companies
and unless some new regulations are made
bv the postal authorities for sending mon
ev by registered mail conservative New
York banks viii certainly prefer to ship
by express"
Free transportation.
New York Letter in Chicago Record.
Referring to Henry Georges platform of
free street cars, a gentleman from Austria