New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-03-30
EFFECT on SMALL BANKS.
curcK REGULATION MAY DRIVE
covr OF THEM OUT OF BUSINESS

,,,,v GAINING GROUND THAT THE
o.nn OH, INFLUENCE HAS BEEN AN
,r,>,r FACTOR N BRINGING ABOUT
THE cuANGr-MoRE PROTESTS.
,,.,n Zach day that passes 1t becomes IN.
W." Evident that not only great part OF
ore'osoontile community. but also the smaler
INV -, the Clearing House Association "Se''
." ooeed 10 the imposition or the 'na'eeS
a' - and after Monday are TO he maze lot
r.otion Of checks drawn on ou'-ol-'o""
'"' Tho belief is steadily gaining srouho'
49,. the standard on influence mas peen
'''' ,or,ant factor in the forcing throus" "
Q" ,,,,orization under which the Olea''"e
- committee prepared its soheuu'e "
tos OF course. the STANDARD oli u SUN
o""' nan" 70 which all sorts of things
wary 10 the public interest are Pop""'
.s. vet some Of these charges have turneu
49,, now and then TO he well founded anu '''''
0"' ., no good ground for the opinion tha' III
49, ,resent iuncture this great hnd"o'"i III
Va, -. reenonsihle for the fixing OF the cheoN
oorsctjon rates which the business me" -
city feel will bear upon '"o"" "'
heavy to be sustained
Tho effect Of the enforcement OF the new res
,.,,,, q seems certain. will be the oiNei''0"
~.o,, the Clearing House banks TO 'he !. US
.o,,nan,es which pay interest Oh
,o,,rces. II A large nuhper VI ...,,
,o.b those accounts of WHO" ,,.x
l.oc,s form an important part ana 'ho'e "'-.
80 few checks of that sort
nav 30 collections imposed on customers OF
49, former class has long been cus'or'"'
=. 80. anywhere regarded as lnequ'aoie' iO' 80
,.,re are undoubtedly put to expense III man
..,oo,iors. but the raising Of the rates ~
tho new standard with the demanui"s - ~
.aos minimum charge on every little coun-
IVY check deposited and the charging i''
,ao.,,r of checks turned in by customers whose
total deposits include faw such instruments o.
,,..-o.tor different matters. The desirable ac-
counts and the undesirable are cha'seo AIM.
49, donoe,t5r Of neither class receiving any OIL
set in the form Of interest on his FUNDS through
-. ,eo ~ which his bank makes its loans and
'a~,s i,s dividends. The result, as already said
s,,, Ne the withdrawal Of many deposits from
49,. ,or.iDtorest paving banks. and the erect OF
..,s oo,fo, will undoubtedly be severely felt by
.ho email hanks. They have been willing to COL
,ao, checks gratuitously for their customers al
.ho,,eb Of a decided expense to themselves for
,ho sake NJ retaining the deposits; but in case
80 ANYTHING like general shifting Of deposits TO
,ho ,r,s, cor7panies. or to banks in other cities.
some ~ the small local banks, IT is UNDERSTOOD
r,,,st 60 ont Of business or be absorbed by their
larger competitors.
SENT TO THEIR CUSTOMERS.
Twentv-three firms Of the Hat Trade Credit
Association have united in issuing to their out
or-town customers a circular, which says IN
part: ,... o..
We must ask you 10 make your remntanCes LOT
,,v Indebtedness IN New-York funds. and we can
-, aooe,, any out-of-town checks which reach us
sf,er Anril J. 1899 without charging you for the
cost Of collection
Rut /, is the testimony OF many NeW-NorK
merchants that they have in the past maze
suggestion Of this sort to their out-of-toWn Gus
toners. that the suggestion has been almost
,,,,eorrolv ignored. since il costs money TO buy
exchange on New-York, and that the merchants
thereupon accepted the checks forwarded ana
paid whatever collection charges might he mace
bv their banks here. These merchants feel that
g customers in the interior disregarded re-
quest that remittances be made in New YORK
funds. they will he likely to go further than
merely to disregard a positive demand OF the
same nature-to 60 so far. in fact, as to trans
fer their patronage to ether cities which have
M such system Of bank charges as will soon be
in operation here.
Some optimists indeed. say, There is only
one New York and the city can never lose her
trade. but there are many progressive cities in
the interior capable OF building up or developing
any industry not in the nature Of an absolute
monopoly. which cannot he taken from New
York There is, too. no indication Of an inten-
ton on the part Of the banks of any other city
70 adopt a system Of collection charges like that
decided upon in New York, although reports of
projected action on that line were current several
DAYS ago. Chicago has tried il in the past, and
Secretary Cages account Of the outcome Of the
experiment. to be found IN another column
makes interesting reading at this time.
one Of the sections Of the resolution prescrib-
Ing the rates for collection Of country checks is
As follows:
dye s the 6oq mol upon eaua ten Gents the coz
lecting bank shall charge not less than that sum,
same line ana rsyabe At the same place may be
ADDED her and treated as one ZEN LOT 'he
purpose Of fixing the amount chargeable.
A controversy has arisen as to the proper in
depreciation Of this section, some authorities
urging that checks drawn on banks in any one
State or region for which uniform rate pre-
walls. and deposited in a bank here by one per
son may be punched thus escaping the MINI
mum charge Of ten cents on each check. Other
bankers assert that checks may be punched
only II all Of them have been drawn on banks
IN single city or town: and Chairman Nash, OF
the Clearing House Committee. is quoted as sus-
tanning this view
VIEWS OF BUSINESS MEN.
Business men generally continued TO express
Themselves as opposed to the new bank tax not
only because IL will be a burdensome cost TO
them. but because they fear that the effects Will
tend a. divert business 10 other places. Com
petition is felt 10 be sharp nowadays and
profits so close that every addition in the way Of
cost retards the business Of the city and throws
much 10 councillors elsewhere. Instead OF
placing further obstacles in the way Of mer-
o1anis they lei that the pOlicy Of all interested