The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-15
MONEY BY REGISTERED MAIL.
Reasons Why the Banks Prefer to Re-
init by Express.

A novel feature in the shipments of cur
1ency to interior points and particularly TO
the South and West, by local banks this
fall is the great extent to which the regis
tered 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 is the ina
bility of the banks to secure this year,
through the Subtreasury, the benefit of the
government contract rates for the express
age. AS result of that the banks have
had TO pay what are known as bankers
rates to the express companies, which are
two or three times as great as the govern
ment 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. Hereto
fore the treasury gladly gave to the banks
the privilege of shipping currency at the
government rates in return for gold ae-
pOsitS. A clause, however, was inserted in
the contract with the express company
when it was last made by which such priv
neges should only be afforded to the banks
when the treasury needed god. The discre-
ton in the matter apparently rests with
the secretary of the 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 generally seem to think 1t would
be better for the treasury always to take
gold when it can without loss. The treas
TRY ruling, however, mas not nclped ire
express company very much, because near
ly all the country banks to whom money
is RENTED 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 at what
are known as bankers rates. Few New
York 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 II
cost more to do so, because ehey consider
IL the safer way.
If money is lost by an express company
during transmission the loss is promptly
made good, whereas, bankers say ii takes
a long time, ana is troublesome task, to
recover the amount when the money IS lost
in the mails. The government is not re-
sponsIble; it only promises to take greater
care of a registered letter, for which the
registration fee of eight cents is charged
it cannot or does not guarantee its delivery
or reimbursement III case of loss. The
cashier OF a large national bank which ships
many thousands of dollars every day 10 It's
correspondents all over the United States,
in speaking Of this matter to-day said:
THE conservative banker stu prefers TO
send money by the well-kn0wn express
companies: but, to save express, since the
government refuses to remit for the banks
the country banks are apparently willing 20
take the risk Of transmission by registered
mail with the guarantee OF an insurance
companys 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. pack
age of currency which is forwarded by the