New-York tribune., 1901-03-25
THE CLEARING HOUSE CHECK TAN.
TIME TO DO AWAY WITH 1T EITHER BY
LEGISLATION OR OTHER FIT METHOD.

To the Editor of The Tribune.
Sir: Now that Congress has removed the annoy
ing tax of two cents on bank checks, write TO ask
whether 1t is not a good time TO try TO remove the
tax of 10 cents or more on each bahk cnecA I'M
nosed bv the New-York Clearing House? Before
The r1a NJ the Clearing House went into effect re-
ouiring all banks clearing through it to charge a
fixed price for collecting checks the newspapers
and business men of New-York made great fuss
about il. but soon they quletly dcUuiSSoeu III
ii, as if it the inevitable
For many years the Clearing House mas existed
as a necessary and helpful feature OF NeW-fork
banking, and far as know until recently II
has not attempted interfere with the private
business of banks connected with it. except to en-
force such rules necessary for carrying on
its own business. In departing from this custom
1t became dangerous combine and a menace to
the freedom of the banks and of the business COM
munity. Its next rule may be to forbid banks pay
ing any interest deposits regulating the kind
of deposits checks the banks may receive. fixing
the of discount regulating any other feature
of the business of banks connected with it. That
a bank has right to charge for collecting checks
no one will question but that it must do so whether
wishes to not is another question. and that 1t
must charge 10 cents for collecting check
on Albany, Buffalo Elmira. and may collect one
on Boston. Philadelphia or Chicago for nothing. is
a matter that the banks and business of our State
ought to have something to say about
When the rule went into effect the officers of the
banks said to their depositors We are compelled
to make this charge. After year they probably
feel they have made good thing out of 1t. but
question If they have. The business men of New
York and the banks and business men of the coun-
try just much dissatisfied with the rule now
as they when II went into effect and 1t has to
considerable extent destroyed the kindly feeling
entertained toward the banks by their depositors.
and any movement looking toward taxing banks
their reserves and individual profits the public ap
proves of. They have lost many accounts because
of this rule of the Clearing House. and millions of
dollars that would otherwise have passed through
them, and much of which remained in them, have
been handled elsewhere.
If IL is evil ii ought TO be remeded and I
would suggest that the banks and business of
the State ask the legislature pass an 01 for
bidding any bank in the State of New-York making
any charge for collecting banks in
State. unless like charge is made for collecting
checks on banks in other States: () forbidding
clearing house of any city in this State making
any rules in regard to the private business of any
bank connected with II, except such
sary for the transaction of its business: 90
that any bank in sound financial condition any
city In which there is clearing house shall be
titled to the privileges of the same. provided 1t
complies with all the requirements of the banking
laws or the United States and the State of New
York and with the rules of said institutions made
In conformity with the provisions OF this act
These suggestions may not meet the case or this
may not be the best way 10 remedy the evil but
II ought TO be done in some way. The question
ought 10 interest every business man in the State
and some united action ought to be taken at once
New-York. March 20. 1901. r X c.