New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-04-10
THE COUNTRY CHECK TAX,
HANprcApP1NG HOME TRADE.
NETWORK MERCHANTS WILL SUFFER- By THE
NEW UNDERTAKING.

NEW UNDERTAKING
To the Editor OF The Tribune.
SIR: We object most strongly to the charge on
country checks which you most properly designate
n tax 1t Is just that and one which. II the o'ate
or municipal government undertook TO levy, would
call forth public inoignatoh' Inc 'e" ~
objection are
Ftrst-It IL step Of retrogression. 1t is contrary
20 the broad and liberal spirit and OASIS III anu
upon which business operations are conouc'e" !"
these DAYS ana Of which the business community
of New-York has been regarded as In the van. we
b.,,eve such is the general disposition OF New
York merchants Such. also has heretofore oeen
s,,nnosed 10 be the attitude OF the banks OF "e
CITY ~ New-York which now undertake TO put
,hs merchant In the contrary position. Yet we
have recently seen las reported In the press' '"e
action OF the banks upheld by an omcer on 'ne
s-ou,d tina, this movement simply return 10
what was customary ten or twenty years ago But
what would go twenty or ten years ago Is oo'
lete to-day in many matters
The country is about TO spend millions OF dollars
20 facilitate the entrance of ships 10 our port III
oyder "a attract business here: we have a state
Commission inouiring into the recent diversion Vi
commerce from this city: and ye' our own "a"
,tep in with a regulation that will be an empa'so
and an obstacle in the way Of our domesuc raue.
A pe.ty system withsl. compatible only with inc
methods OF years ago of some country Town.
We saw that the banks are responsible TOT pu''i"s
IN. merchants OF NewYork in this atutuoe U.
cause the alternative TO the merchant oea'i"e ~
<xpense is for him TO insist on his country remit
tances being made in drafts on New-horK OF Iuhus
6apkable here without cost 10 him
This leads 70 our second ground of objection
namely that II is handicap upon the New-forH
merchant 1t will work in something IKE inns way
for illustration: A merchant more or less posi",''
,eou,res his country customer TO obtain drai' on
New-York This involves more or less hcoh'en-
fence and in many, y not in most cases, aso
.x,.nse The same buyer is able 10 obtain similar
goods from merchants in other cities "heIe .'iie
Inconvenience and expense are not lnVoIVeo' VS.
naturally and most certainly the ou|er III ma
case will give the preference to the merchant IN
the other city who will not he slow TO make d"
the capital out Of this matter that is possible.
DAY OF SMALL PROFITS.
"a. ,odsv turns on very small margins. frac-
,,onal neroentage OF difference in freight alone often
determining where IT shall go There can De no
question that the alternative TO the diversion OF
large volume ~ business will he the yieioine OIL
IN. New-York merchant Of the requirement OF New
York funds and his bearing the loss OF the COST
for collection. For. in these days OF close com
neftjon there is small chance Of his neins apie
70 reeoup the charge in additional price ana II tha'
we're attempted the result would be the same as
he would be undersold by competitors from o'her
cities In many cases this tax will he Of no IN
considerable amount for throughout the small
,orns ~ the country there large manufacturing
establishments or merchants who draw their sup
plies from New-York'
This las, consideration leads TO our third 3D.
lection namely that the tax will have tendency
~ weaken banks in the small towns. probably IN
many instances driving them out OF the business
nv deriving them Of many accounts OF manu-
featuring and other firms. who Will hnd IL 10 theh
interest TO transfer their deposits to banks IN ces
upon which they can make draft without expense
that is assuming that this movement on 'he part
OF New-York banks could he adhered to and main
tained. ,
II will thus be seen that this action OF our banks
IA one OF important bearing upon banking interests
throughout the entire country so close ana ln'ia'e
are the ramhcations Of business in these times
This is phase Of the subject that possibly has not
had the consideration that II demands. In recent
wears efforts have been made 10 promote the estao-
Iishment OF banks In the small country towns and
they have proved OF large benent 10 me commuoid
operate to their DISADVANTAGE would be an INJURY 10
in mind that doubtless many of these country banks
upor which collection charges are 10 De et We ~
banks which are members OF the Clearing House
making the charge; At, .o, o.
the light Of It's mmsdate eec, upon our o, own IN
apprehend. II is. however fair for us to add that
Especially those dealing with retail trade. whose
business involves many country checks OF smaI
b sPo their accounts Would not be profitable
for bank to carry unless charge FOR Goect arn
cher oonsiderations as TO the amount of balance
carried etc It goes without saying that the rndrge
would not be objected TO by the merchants IN SUCH
". believe been exercised by the banks and our
argument is that the whole matter should De Ieit
Sas been 10 deal with each account its merits.
the circumstances demand.
NO REASON FOR THE CHANGE.
No ADEQUATE reason has been set forth for depart
ing from this established custom. II cannot be
argued that our banks have not been making a fair
proportion Of the profits of business for recent
YEAR. Their returns and the prices OF most banks
stock show 10 the contrary. This would appear
10 be very largely effort TO accomplish by the
power Of combination something which has not
sucient strength by reason Of right In Itself to
merits M s'i BY individuai institutions:
ZION SO evidently contrary to public policy good
as 10 fan nnder the prohibition Of the common law
zion ss 'ass egnsnSsH:e
BY the banks Of the efforts TO hs resu a
peal TO legislation. which. for all the interests con,
s.W ay mao bill ha been in the
aimed against this action OF the banks ana me
II such must be reso,ted TO: still unfortu
nate the action that necessitates It, The business
Still further. there is another phase Of The sub
o vh ts 10 ns Welfare II 81 OF
people SHOULD watch with the utmost
steps however short they may seem in the d.
rection of combination OF the money institutions
or interests that would in any degree curtai! me
Independence or restrain the competition or the
banks We do not say that this Is an Intentional
step toward combination. but II oehooves me
people TO meet the very first appearances or De-
efnnings of such with the most determined OPP
position for II is direction In which danger lies,
not only TO the financial and oommercal ont 10 the
political and all other interests OF our country .
We trust therefore, that the press Will bring us
most powerful aid 10 the help Of the community IN
this matter and that all commercial organizations
will make their influence felt 70 the utmost IN OPP
position to the enforcement OF this tax.
AMERICAN LEATHER COMPANY
No. l6 Spruce-st., April s. 1893
DANGER TO NETWORK TRADE.
To the Editor OF The Tribune.
Sir: The new rule OF the Clearing House Is the