The Van Buren press., 1897-11-20
SHIPMENT OF MONEY.
lteas0ns why Banks Prefer to Remit
Funds by Express.

lieasOns Why Banks Prefer to Remit
Funds by Express
\ The fact that many southern and east
ern banks have recently used the reg
iistered 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
fouud in the inability of the banks to
secure this year, through the treasury
Of the United States, the benefit of gov
ernment 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:
"The conservative banker still prefers
TO 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 with
the guaran tee of an insurance COM
panys policy for its safe delivery Not
withstanding, however, the registration
and insurance, the risks of sending
large sums of money by mail are very
great. A package of currency which IS
forwarded by the registered mail de-
partment of the postal service has no
distinctive mark indicating its value;
pencil receipt is given for it just the
same as for any ordinary letter or pack
age of merchandise 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
box of shoes or a package OF gloves
The registry clerks receipt is not doc
pment that is as we'll known or as salts
factory as the receipt of the receiving
clerk of an express company, and IN case
of the loss of the package, the delay IN
The recovery of the money is intermin-
able.
"On the other hand, the express com
panies locate missing packages OF
money or make good the loss promptly,
without technicalities or delays. They
are responsible, and banks run no RISK
in shipping by them. Their employees
are chosen solely on the ground OF adj
itv and trustworthiness, and they are
therefore more likely to be more ac-
curate and prompt than postal en-
ployes, who owe their places, more or
less. to politics, Notwithstanding the
civil service eAdlnluatioh' '"N
true that by insuring money sent py
registered mail there is some guarantee
against loss by non-delivery, it is equal
lt true that there is considerable risk
Of loss if the insurance company STANDS
ON technicalities. The slightest IN
formality in the observance OF the terms
Of an open policy issued by an insurance
company renders the policy invalid, ana
would in the case Of a missing package
cause the loss to fall on the conslgnor.
The technicalities to be observed by a
remitting bank in sending money by
registered mail when the delivery OF the
money is insured by one of the local IN
surance companies are very great com
pared with the simple but safe methods
Of the express companies, and unless
some new regulations are made by the
postal authorities for sending regis
tered mail conservative New York banks
will certainly prefer to ship by ex-
press"
The cost of postage and Insurance.
saws the Post, is much less than the
usual express charges at what are
known as bankers rates. rev New
York bankers, however, would remit
money in that way, unless they were
directed to do so by their correspond
ents. They would rather ship it by ex-
press, even though it cost more to do So
because they consider it the SAFER way
walters First Dip.