The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1898-01-18
GOOD AS THE BANK
Postoffice Becomes a Mem
Der of the Clearing House.
WITH FAVOR
Postmaster Sends Letters to
Business Men.

bona fide member of the Wichita Clear
ing House association. Postmaster Thos.
G. Fitch has sent out number of letters
like the following to business men
throughout the city:
Gentlemen:-Your attention is invited 10
the fact that what is known as the
rCIearing House System" of payment Of
postal money orders has been put into
operation at this postof1ice, an arrange
nent having been made with the banks
Forming the Clearing House association.
Under this arrangement money orders
drawn upon this postofice are received
on deposit for collection by the several
banks the same as ordinary drafts or
checks, and at once credited TO the &C
count of the depositor, who is thus spared
the necessity of presenting them at the
postofice.
The postoffice department, DESTROYS OF
accommodating the business houses, which
are the payees of some millions Of these
orders, has recently modified certain OF
ats regulations, for the convenience of
banks and the business public, and under
the method above described the prompt
payment Of orders will be greatly facil-
Itated.
Money orders deposited in bank for
this purpose need not be Endorsed 20 the
bank, but simply receipted on the face
as when presented by the owner at the
postoffice.
Ther following extracts from reports re-
ceived at the postoffice department show
how this system, which, like the letter
carrier service, promotes public convent
ence, while it tends to relieve pressure at
the postofice, is appreciated where it
has been tried; and it is suggested that
you may find it to your advantage to
hereafter deposit your money orders at
the bank at which you keep your ac-
count, instead of presenting them at the
postofhce for payment. At times the
number OF applicants in>line at the money
order division prevents that expeditions
payment which is desirable, hence the
above suggestion is made in the belief
that it will be more convenient to you to
deposit your orders Respectfully,
THOS. G. FITCH. Postmaster.
Postmaster Fitch has received the fol-
lowing instructions from First Assistant
Postmaster General Perry S. Heath rela-
tive to the rules and regulations that are
to be observed:
Washington, D. c.
7. G. Fitch:
Sir:-The necessary preliminary ar
rangements having been made by you
with the Clearing House association of
your city, the department authorizes the
adoption Of the method known as the
"CIearing House System in the payment
of money orders drawn upon your Of
fee.
Uuder this system, adopted fon the mu-
tual convenience of the postoffice and the
banks, and the greater accommodation of
the public, a representative of the post
Office is present at the meetings of the
Clearing House, to receive to receive
money orders deposited for collection
with the banks there represented. He
receives the money orders in packages,
with lists of the same, from the messen-
gers of the several banks, and credits
each bank with the total amount shown
by its list, the footing of which for the
time being is assumed to be correct.
1t will be distinctly understood that
formal membership in the Clearing House
Association shall not be required of the
postofice department; nor is authority
vested in the postmaster to assume the
rights or privileges of such membership,
to incur any expense whatever in carry
ing out this arrangement or to be re-
sponsible in any way for the acts of the
association.
That the banks may not be unneces-
sarily Inconvenience, the postmaster
shall accept all orders thus presented,
A which are drawn upon his office, whether
;r- ;- On,
y file at the time the order is presented.
If the advice be not on file, he shall hold
the order as a part of his cash balance
and not stamp the same as paid until the
advice is received. No order shall be re-
turned to the bank because Of a technical
lrregularity which may be corrected
Through correspondence with the issuing
postmaster. Only those orders shall be
returned which are necessarily rejected
because drawn on another Office. or be-
rause of some serious omission or other
grave defect or irregularity therein af-
Tecting their validity as vouchers. To
zach of such orders when returned to the
bank shall be appended a slip explanatory
of the reason why the same cannot be
accepted and the amount paid on the
on the order shall he refunded to the post
office by the bank, on demand, without
regard TO the date on which the order
passed through the Clearing House
IN case an order is presented which
Is drawn upon another Office. If the payee
Is a wel-known resident of your city and
fhe corresponding original advice is cor
rectly drawn upon your Office. thus in
hicating a probable clerical error in nam
ing the place Of payment in the order,
Euch an order is not to be returned 10 the
bank for reclamation. but is to be held
rs the equivalent of cash to like
amount pending the receipt of instruc-
lions from the department to which the
the facts are to be promptly reported.
Inasmuch as this is an agreement for
mutual convenience only. the post office
department IS not under obligation to
eomply with any rule of the Clearing
applicable 10 its members which requires
that reclanations or claims for errors be
adjusted or made before the close Of
banking hours on the day the errors oc-
rur. or within any limited time thereafte
TnPHTE1FRIT