New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-03-29
REMEDIAL PLANS URGED.
orT.oFTOwN CHECK TAX AROUSbS
MERCHANTS MORE AND MORE.
WAYS PROPOSED TO OFFSET ITS EFFECT
rOr1S RRrsBEN WALKER SUGGESTS
A NATIONAL CLEARING HOUSE
RANK AFTER THE AUsTRo-
rIr-\CARIAN MODEL.
HUNGARIAN MODEL.

a. oo,,oo.;or 81 ont of town checks were adopt
a -, ,.o,a ~ practically all tho members of the
Clearing House Association. it is well under-
,ood that the unanimity of sentiment was APP
rarent rather than real While. then there IL
on ir,portant body of influence among the AS
socioted Banks which is opposed 70 the charges
-. least 10 the scheduled rates when I'cohe
lucrative on Monday-it is not probable 'ha'
this opposition could muster a majority No'e'
and the regulations cannot be altered OF re-
..,,zod. until they have been in force at least
three months. except 10y majority vote % '"e
clearing House Association" But an enforce
rnent for even three months of the ne" ruIVS'
esne-iauv at this season. with the spring trade
,ue, operinc would have an effect little short or
disastrous upon the business Of the department
stores and the retail dry goods stores, 50 large
o mar, ~ whose trade is conducted through man
orders with which small checks are incloSed LOT
navnnent Of goods ordered: and also upon the
publishers Of books. periodicals ana he"SP@
pers who also must pay 10 cents charEe Upo"
every check accompanying purchasing OF SUI
scription order. no matter II the oheoN - '''
only a dollar. So it is no wonder that inc ii'S-
meet Of early relief through action oil 'he 'e"'
,,g rouse Association itself being extremely
small these threatened interests are seriously
discussing alternative remedies
ono proposition. referred 70 in The III"uH0
YESTERDAY. IS for the establishment OF oa"N
the stockholders Of which would be hIlnS anu
generations especially likely 10 suffer ny 'iv
"1n-ccnt minimum charge" and when Wou'1
undertake the collection Of out-of-toWh 'hechS
at much more equitable rates than those pre-
soribed by the Clearing House. Another plan
which meets much favor and which Is
,iko1v 70 be adopted by many mercantile hrms'
concentrates The transfer Of their accounts from
National or State banks TO trust companies the
interest allowed by which on deposits Woulu
largely offset the expense 70 the depostor OF the
collection hy the trust company. assuming il 10
be affiliated with the Clearing House AsSo'ia-
zion. Of the out-of-toWn checks received by such
deposlter and turned over to his trust company
for collection \ plan for the ultimate solution
Of the whole matter Of collection charges mas
been suggested by John Brisben Walker VINO
proposes the organization Of the 'Nauoha
Clearing House Bank" TO he modelled on the
lines Of an institution conducted 10y the Govern
ment Of Austria Hungary, which has for many
wears been in successful operation IN that
empire
OUTLINE OF THE PLAN.
Mr.. Walkers plan is in outline as follows
The bank would have n capital Of NJV"VV' 10
he invested In United States per cent BOMBS
and subscribed with the agreement that the diVl-
dends shall never exceed 10 per cent year any
surplus to he placed in a sinking fund me
hank would be managed by president, the
only salared officer. and twelve directors nine
Of whom and the president would be presidents
Of leading banks. No account for less than Gov
would be opened. the depeskar payment OF
So 50 additional. to receive book containing
one hundred checks and one hundred deposit
sims The checks would be printed with three
stuhs one record-sp. remaining in the book.
the second to he a receipt stub. and the third
stub constituting the banks voucher The de-
positor living in Boston. forN instance. having
occasion 10 make a payment IN Chicago Nils
out the check and its vaIf-As stubs and adj
dresses and incoses the check in an envelope
addressed TO the National Clearing House Bank.
NeN-York A. that institution the first stub
which is printed in the form OF a receipt by the
bank for the sum specified. with instructions T.
nay 10 the designated payee, IL signed by q
bank official and returned hy mail 70 the de-
positor the back Of the stub being printed as
postal-card. The second stub the check proper
is fled at the New-York office Of the bank. The
third stub. printed in The form Of receipt from
the payee IS made up with package OF other
similar stubs and forwarded 20 the branch bank
at Chicago the list Of these checks. forwarded
each day constituting the credit TO which the
branch bank is entitled from the central office
This last stub Is mailed TO the payee who can
cash IT, deposit u with his own bank for collec-
ton or II he Is a depOsitor Of the National
Clearing House Bank, pas sthe stub TO his &C
count with that institution. The cost to tho
maker Of the check for whatever amount
81 may be- would be IS cents. The cost
70 the hank. which would be reimbursed by the
charge 10 the maker Of the check It Is estimated
would he about three ana a half cents a check.
including the postage the two postal card
stubs In Austro- Hungary the cost Of printing
and handling these checks is about IL cents
apiece In each city. town and village the
strongest and most conservative bank would he
designated as the representative OF the National
Clearing House Bank. its services 70 be given
without compensation other than that derived
from the advantage obtained from the prom
inence given IT by being the representative Of
the central institution the profit accruing to it
as the local depository OF the funds Of that In
stitution The 5000 900 capital stock Of the Ma
tonal Clearing House Bank the plan provides.
shall be divided among the Clearing House
banks IF this city In proportion to their several
average deposits.
CIRCULARS ISSUED.
Circulars were issued downtown YESTERDAY
OescflplnR llN pl"poSrt vi SdH'''''ii u al''t''N
institution for the collection of country checks.
TO be called the Bank of Collection" In this
bank country checks received 10y the various ex-
listing banks Of the city would be deposited by
them. to be checked against by the Bank Of
Collection" on the following day through the
Clearing House
Another apparent move against the interests
of the country banks came TO light yesterday
when II was learned that certain Clearing House
banks which have been prominent in bringing
about the adoption Of the new collection charges
were sending to merchants and corporations all
NO,,DO ;l1ran 70 avoid