Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1900-08-02
or INTEREST TO ALL pspos,roRs.
Maine Banks Object 10 The New check Rate
Rule Of Boston and New York.

| A subject that is claiming the attention
of the banking people Of Maine, and the
depositors in the different banks as well
is the so-called check rate rule recently
adopted by the Boston clearing house
This is a rule for the fixing of exchange
rates and making charges on all checks
deposited. either by banks or individuals.
These charges range from lilo to ii OF
one per cent.
If the country banks have to pay these
charges they will be forced in justice to
themselves to charge it back to their de-
positors In the interest of the latter,
therefore. the banks have endeavored to
make connections elsewhere by means OF
which these charges could be avoided.
The city of Philadelphia has in 1t some
of the largest and strongest banks in the
country, and they have been offering lib
eral inducements to the country banks
to come to them. A great many Of the
latter institutions have already gone. and
the prospect Is that others will follow.
The executive council of the Maine
Bankers Association has recently had
the matter under consideration, and has
issued a letter to members Of the associa-
ton, part of which reads as follows:
That the Boston banks do not fully
appreciate the value of the enormous de-
post which they receive from the coun-
try banks. is probably true, and is at
tested by the fact that some of the very
largest of the country bank repositories
opposed this action. IT, through some ac-
ton of the country banks their value
can be forcibiy brought to the attention
of the city banks. some concessions may
be obtained. If this cannot be done, It
would seem advisable 10 consider whether
il may not be wise to establish relations
with banks in cities other than Boston
or New York Other cities are offering
strong inducements and liberal terms,
and it may appear that neither Boston
nor New York are absolutely essential to
the proper conduct of business. II will
often be found neither wise nor prudent
for the country bank to charge exchange
to its depositor. because he. for various
reasons. may not desire, or be able. t.
collect it from his customer. who, very
likely. may be several degrees removed
from the drawer of the check. TO make
such charge is an Innovation. 1t Is in al
rect opposition to the policy and the ser
vice which have SO largely contributed
to the popularity of the banks with the
business men of this country. Should 1t
be resorted to, except as a last resort?
1t is argued. (and perhaps rightly. that
all such charges should be made to fall.
ultimately. upon the drawer: but until
that can be done, land it probably never
will be-. it would seem proper for our
members to consider whether they SHOULD
not adopt such reasonable means as lie
within their power to protect the inter
ests to their customers. and by so doing
serve also. themselves. The whole ques-
ton resolves itself into one of personal
concern. The Boston banks will surely
take care of themselves: 1t behooves US
to be not less dliScnt than they"
The Boston News Bureau of July 3lst
states. among other things concerning the
workings of the rule. that over $4,000 90
have been gained by the Philadelphia
banks since the New York and Boston
clearing house rules went into effect.
Depositors in our banks will see in this
another indication of the purpose of these
banks to give to their customers the best
possible service at the minimum of trou
BILE and expense to them.