River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1897-10-21
MONEY BY REGISTERED MAIL
Reasons Why Banks Prefer To
Remit By Express.
Result of the Government Declining
to Ship at Contract Rates--The
Delay in Reimbursement in Case
of Loss in the post-office-Technic-
alities of the Insurance Com
DanieS,

pdnicSs
4 novel feature in the shipments of
currency TO interior points, and
To the South and West,
BY local banks this fall is the great
extent TO which the registered-mai
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 is the
inability of the banks TO secure this
year, through the Sub-treasury, the
benefit OF the government contract
rates for the eXpresSage. As result
of that the banks have had to pay
what are known as bankers rates TO
the express panies, which are
two or three times as great as the
government-cont rates, or ship
their money by registered mail.
The course of the Treasury in
respect to this matter has been eX-
planned from time TO time in the
Evening Post, so far as any eXpfana-
tions could be obtained. Heretofore
the Treasury gladly gave TO the banks
the privilege Of shipping currency at
the goYernment-contra rates, or
rather, shipped the currency for the
banks at the government rates In
return for gold deposits. A clause,
however, was inserted in the contract
with the express company when it
was last made by which such privileges
should only be afforded TO the banks
when the Treasury needed gold. The
discretion in the matter apparently
rests with the Secretary of the
Treasury, and he has seemingly deci-
ded that the Treasury does not want
gold now. Consequently the banks
cannot have the benefit of the govern
ment-contract rates for eXpressage,
although bankers generally seem 10
think it would be better for the
Treasury always TO take gold when it
can without loss. The Treasury
ruling, however, has not helped the
express company very much, because
nearly all the country banks TO whom
money is remitted, and who have TO
pay the cost of transmission, direct
their New York correspondents TO
ship the money by registered mail,
and insure its safe delivery in one or
other of the companies which make a
speciality of the business.
The cost of postage and insurance
is much less than the usual express
charges at what are known as bankers
however. would remit money in
that way, unless they were directed
TO do so by their correspondents.
They would rather ship it by express,
even though il cost more TO do so,
because they consider it the safer way.
If money is lost by an express
company during transmission, tie
loss is promptly made good, whereas,
A.,., lr..t 10 fs1l~ a
is a troublesome task, TO recover
the amount when the money is lost
in the mails. The government is not
responsible; it only promises to take
greater care of a registered package,
for which the registration fee OF
eight cents is charged; it cannot OF
does not guarantee its delivery or re-
endorsement in case Of loss. The
cashier of a large national bank which
ships many thousands of dollars
every day TO its correspondent all
over the United States, in speaking OF
this matter to-day, said:
The conservative banker still pre-
ferS to send money by the well-knOwn
express companies; but, to save eX-
pense. since the Cover dment refuses
TO remit for the banks any longer al
govern ment contract rates, the
country banks are apparently willing
to take the risk Of Transmission by
registered mail, with the guarante
OF an insurance company's policy for
its safe delivery. Notwithstanding
however. the registration and IL
surance, the risks of sending large
sums of money by mail are very great
A package OF currency which il
forwarded by the registered mai
department Of the postal service has
no distinctive mark indicating It's
value: pencil receipt is given for ii
Just the same as for an ordinary letter
or package 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 a box of shoes or 9
package of gloves. The registry
clerks receipt is not document that
| is as well known or as satisfactory 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 in
| terminable.
For instance, a few years ago q
Southern bank ordered from its New
York correspondent $4,000 in
currency, the money to be sent by
registered mail. The package was
put, or supposed to have been put. in
a certain through pouch, but when
| the pouch was opened in the Southern
pCst-oflice in the presence of the
President of the bank, who was
anxious about the arrival of the
money, the package was not there
| Investigation by the post-oifice
aut horities failed to discover its
whereabouts, and the insurance
cam pany which had issued policy
guaranteeing its safe delivery was nc
more successful, and it was a long
time before the bank was REIN burSe0
| for the loss. The inconvenience
caused to banks by the non-receipt OF
money on time could not be estimat'
ed. Ia some cases, as in times OF
panic, for instance, the delay might
| be fraught with very serious con-
sequences. A year or so after the loss
OF the money referred to, other mis-
sing articles were traced TO a certain
dishonest postal employee, AMI the
secret of the missing money package
was then solved by his confession.
ION the other hand, the express
companies locate missing packages OF
money or make good the loss prompt
ly, 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 ability and truStwOrthiness,
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 insuring money
sent by registered mail there is some
guarantee against loss by non
delivery, It is equally true that there
is considerable risk Of loss II the
insurance com pany stands on tech
nicalities. The slightest informally
in the observance 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 TO fail on the
consignor. 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 loca! insurance
companies are very great compared
with the simple but safe methods OF
the express companies, and unless
some new regulations are made by
the postal authorities for sending
money by registered mail, cOnserva-
tive New York banks viii certainly
prpfer m shin nv eXDFess New