The Providence news. (Providence [R.I.]) 1891-1906, 1898-07-06
Opinions Of Officers Of
Some Local Banks.
MAY CAUSE REDUCTION
In The Number OF Checks Issued,
but Only Temporarily.
coNvENIENcEs OF THE METHOD

There is one phase OF the new war
stamp tax which, perhaps. has not
been considered by the great mass of
the people of this city, but which,
nevertheless is worthy of attention,
and that is, the two-cent stamp which
must be attached to every bank check
drawn, no matter how small the
amount that the check calls for. IL is
not improbable that bank officials have
given the matter some thought; in fact,
to some of them The News reporter ap-
piled for their views but 1t Is doubtful
IL the average depositor has done So
There are quite a number Of persons
In Providence, many OF them women,
who have bank accounts, who are In
the habit OF paying their housekeep-
ing bills by check, and IL Is no secret
that some of the banks are subjected
to considerable annoyance and trouble
by being compelled to pay checks
drawn In many instances for fractional
parts OF a dollar. Such accounts are,
as a rule, Improbable, but the banks
do not raise objection, because they
accept such Inconvenience as matter
of business. Many OF these housekeep-
ing checks are for small amounts, but
under the present law they must be
stamped to the amount of two cents.
WHAT WILL THE RESULT BE?
Now the question arises, what Will
be the result of this war tax? 1t has
been suggested by some banking men
that inasmuch as the drawer of the
check must pay the tax. the result will
be decrease in the number OF checks
drawn for small amounts. Others, how
ever, do not entertain this opinion. As
suming that an economical person is
prompted to save two cents by draw
ing check for a larger amount, so
sxuIx Ia. h IN M a a
small bills in cash. 1t is predicted that
after few experiments he will return
to the practice OF payment by several
small checks.
whether such will be the case, of
course remains to be proven, and IL
will take a little time before any
| definite results can be observed. But
| in the meantime certain questions nat
urally present themselves: What
method is likely to be substituted for
| checks In payment of small accounts?
| Will more money be carried on the per-
son? Will IL pay a depositor to avoid
| the payment OF the two cent-stamp?
| A News man propounded some OF
| these questions to prominent local
| banking man this morning, and, after
! some slight hesitation, he consented to
| give what he said was simply his pri-
vate opinion.
FEWER Check FOR A TIME.
He said that he believed there would
| be for some time a tendency to draw
| fewer checks for small sums, and he
| was of the opinion that both men and
women who make regular payments for
| domestic supplies will carry in their
pockets more money than usual. But
| this will not last long. IL Will not
amount to ripple In financial meth
| ods. They will in a comparatively
short time return to the easiest way
L texot no
| question is, Which is the easiest way
| to do this? The problem is certainly
| not a difficult one to solve.
| No man will carry gold around with
| him. IL he can help 1t. and 1t is by no
| means safe to send greenbacks by un-
registered mail, and to employ mes
| sengers always would be to return to
the days Of our grandfather. What.
then, is better. safer and more busi-
| nesslike than to send check? When
II comes back indorsed the payment is
| made, the receipt Is there and payer
and payee are satisfied. Hence he be-
lieved that while there might be
falling off In the number of checks for
| small amounts for short time, the
| present order OF things would soon be
resumed. in spite OF the tax
TO PRESENT METHODS.
The cashier OF one OF the principal
banking institutions in this city, upon
being asked what he thought about the
| matter, said that he was convinced
that checks will be used just as freely
as usual after the first feeling which
everybody has who is taxed has dis
appeared. There may be times when
big commercial houses will find IL con-
venient to pay small amounts In cash,
but they. too. will return TO check pay
ments A two-cent tax may seem
heavy when an aggregate Is considered.
but the advantages I'm paying by check
far outweigh the impost on IL.
IL should be borne In mind, he said,
that checks are provided by the banks,
that stationery Is cheap nowadays, and
that the only cost the drawer of a
check has TO meet Is the governments
two cents. and this was another reason,
In his opinion. why there would be very
little. IL any, change In the usually
adopted method of doing business, even