New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-04-01
roTrNTRY BANKS OBJECT.
,,,xc IN COMPLAINTS REGARDING
THE CHECK CHARGE.

~ TIN CLEARING HOUSE COMMITTEE
CAUSES QUALIFICATION TO BUsI-
NESS HOUSES.
49,. rrottAcation was expressed yesterday by
,.oss houses. large and small over the action
$780,, clearing House Committee In interpreting
s,tor No. : of the new check collection regu-
,1.,.ns IN such way as to permit the bunch
-. ~ all checks drawn on banks in any Of the
c.,as included in one collection zone" and de-
osited together by one person in his bank here
.A,s interpretation practically removing the
hardship amounting in some lines of business
% virtual connscation. which would have at
tended the enforcement Of minimum charge or
IN cents each on all checks. however small, not
drawn on banks in a single city or town not in
Guided in the discretionary" list; and the opin-
ION was general in the mercantile community
that The Tribune's efforts in their interest, and
its publication Of the OF letters of protest
which 1t had received from business men, had
done much to inform the banks OF the real
sentiment Of their depositors on the question
Of the proposed charges and to influence the
Clearing House Committee TO take early action
in making a ruling whereby the most oppressive
feature Of the regulations should be materially
modified.
But while an important concession has thus
been made by the associated banks as 70 one
class Of charges. II is felt by many merchants
and bankers that the rates Of one-tenth and
one-fourth Of l per cent for collection OF checks
on banks In the regions for which THESE rates
respectively are TO prevail are too hlgh, ana
that the enforcement Of these charges will oper-
ate to divert trade from this city, Customers
OF New-York business houses could. or course.
make remittances in drafts on New-York. but
there can be no compulsion to force them to
substitute drafts. for which they must pay, for
the checks which they have been In the habit or
drawing on their local banks and 1t is felt that
q notice sent by New-York house. requiring
payn1ent in "New-York funds" would in many
cases be met by a counter-notice by the Gus
toner to the effect that he would in future deal
with concerns in cities, such as Boston or Phiia-
delphia, in which his checks would be accepted
81 par The New-York merchant would then
have TO elect between paying the charges MINI
self or losing his customer, ana the ProPoseu
charges. in these days of close business compeu-
ton. are regarded by many merchants as
amounting 10 a set-off against profits, ana by
those Of whose deposits out-of-town checKs
form only a small part, as an exactioh "hic"
should not be required Of them taking INTO
view the fact that they receive no interest," ="
their balances.
ACTION IN THE PAST
Many depositors have in the past palo a SINAI.
collection charge on their country chechs' anu
che feeling in the business community Is ho'
,,ndarstood 10 be one Of hostility TO the ri1n-
iii. ~ connensating the banks for the expense
80 which they are concededly put in making COL
Ieo,ions but rather Of opposition to the scneduie
~ rates which has been adopted ana the haiu,
snd-fast rule OF bringing under us opera'io" an
accounts of all the banks, both those
which do and those which DO not regard the coi-
lection Of country checks as an unproii'a''0
and undesirable branch Of their business
The country banks" are up IN arms aea'A''
the new Clearing House regulations anu q.
,c,,rinc in complaints to their local correspond
ents. accompanied by limitations OF retaha'oiS
ect,on. A well-known bank officer in this ci'y
,o,a Yesterday: IT believe that the balances oi
o,,.of tou.r banks held by local banks VIII DC
r,otsriallv reduced as a result Of the new Clear
g., uoueA rules Several OF the large down.
.o., hanks have in the last few days received
,.ord from their out-of-to town correspondents Oh
,bair nurpose to reduce their accounts or 10
Withdraw them entirely. This is especially true
NJ out-of-town banks which have two or three
accounts They will in future have only one
here and will instead open accounts In BOSTON,
PHILADELPHIA and other Eastern cities, where
their checks will be received at par. no charge
being made for collection; and they Will SEM
their out-of-town collections which VIII cost
them money TO other points, thus building up
their balances at those points at the expense OF
New-York.'
The denosits Of funds Of out-of-town banks
taken in the aggregate. constitute an important
part Of the funds held by New-York City banks
and. although per cent interest is paid on
such balances the local banks derive saus-
factorv nrodt from their in loans a source
a. income which may henceforth be cut OIL
The hostility Of the country banks is peleNeo
N he largely due TO knowledge OF the fact thd'
some Of the largest New-York banks nave sihce
The ado,tion Of the new collection regulations
sent out their own signature blanks 10 custom
ers of the out-of-town institutions. each blank
being accompanied by printed slip reading:
PLEASE retain this until IL is TO your interest
10 use it," 1t would be 10 the interest OF tr .s'
firms and corporations Throughout the CUM -,
which do business with New-fo rK houses "
have after Monday balances with New iolk
hanks on which they could draw cheeks WHICH,
would be "New-YOrk funds the coIect'oh W
which would involve expense 10 neither the
naver nor the payee: but the balances thus de-
nosited with the NewYork banks, sweiilng lhe
amount Of their funds avaiaD ceun r1r banks
which have hitherto profited by their possession
and use.
TO BUYERS OF RAW SILK.
Comics Of the following circular have been
sent by the firms signing it to every buyer OF
raw silk:
A circular issued by he New-York Clearing
T4nuee and dated March Is 1899, the provisions
Of which will go into effect on April g. ls'U com
pels ali banks in the city OF New-York whlch re-
ceve checks or notes payable in places other thah
the CITY OF New-York 10 make a charge lot suCn
collection OF not less than one-tenth Of per cent
of the amount Of such checks or notes. - ,,,orr,
The undersigned. therefore beg leave 10 INFORM ,
you that hereafter ell remittances made by you
10 either Of us should be made in New-fork lily
bankable funds-that IS TO say. that any checK ot
note should be made payable at some New ork
City bank or trust company or by draft on some
NcW-York except drafts. CheCks OF