The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1903-07-10
MONEY ORDER BUSINESS
Bankers Propose to Take Away Fees
From Uncle Sam.
Express Companies May Also BE De-
throned of Power.
1.-The Primary 0bjec. of Bank Is to
Make Money
Advertising Is As Necessary As in
Other Business Lines.
From Wednesdays Daily.

Three hundred members of the Min
Paul yesterday at the fourteenth an
nal session of the association, and de-
clared themselves in favor of any scheme
which would reclaim for the banks the
money order business now transacted by
the postoffice department and the eX-
press companies.
The bankers are determined to con-
troll the money order business and it
was suggested that they combine and
do away with the cashing of any money
orders issued either by the postofice de-
partment or the express companies, eX-
cept where a fee was charged.
Strict adherence to a policy of this
kind. ii is believed, will do away with
the entire money order business now
conducted by the government and the
express companies.
Judge John w. Lusk of st. Paul, presi-
dent of the German American bank, add
vised the bankers that there would be an
end TO the present good times, but ON
the whole his talk was not pessimistic
In an address on Money ORDERS" j.
NJ. Haven, president of the Sherburne
County State bank of Big Lake, said
that the government and express COM
panies, by meaIss of advertising, were
Iobbing the banks of their rightful share
of the business in spite of the fact that
the banks were charging much less for
the transaction of such business than
their successful competitors.
THE primary object of bank is to
make money" said Mr.. Haven, ''and it
behOoves every banker to look over the
business and ascertain wherein he has
failed to obtain the best results. Prob
ably no branch OF banking has been more
neglected than the draft or money order
department The banker has allowed
the government and express companies
to advertise money orders early and oft
Ell, and at prices two and three times as
great as that charged by the banks and,
with an expensive method of redeeming
lost orders, walk off with the lions share
of the business which belongs to the
banks.
advertising is as necessary in the
banking business as in that of any other,
and unless we keep our business and its
advantages before the public we can
not expect to compete with those who do.
What we must teach the people is
that bank money order can be cashed
at any bank in the country at par, no
matter where it is drawn.
This is the rock on which we must
build the foundation of the bank money
order business. The express and govern
ment orders must be paid by the people
issuing them or submit to exchange
charge. They cannot afford to carry the
cash TO meet them, and the business
would soon revert to the banks"
Another address Oh the money order
question was made by o. II. Havill, presi-
dent of the Merchants National bank of
st. Cloud In speaking of the system
Mr. Havill quoted figures to show that
the government and express companies
were doing much more than their legi-
innate share of the business.
The money order system is unique
among the substantial financial factors
of the world" said Mr.. Havill. ''Its
business is of enormous extent, yet it is
conducted without dollar of capital of
its own. 1t has the confidence of the
world, yet is without a dollar of sur
plus; if all its obligations were paid
nothing would remain.
Let the Minnesota Bankers associa-
tion pass a resolution not to handle the
postoffice or express company money or
ders, issued from a banking standpoint,
without fee. Make this apply to every
one, including your depositors. Cash all
others at par, that is, those issued from
banking point. 1t has been sug-
gested that if the banks should refuse
to cash these orders issued by the gov
eminent and express companies that ar
rangements would be made with some
bank at a reserve center where such or
ders could be cashed at par, but hardly
think there is any danger of any such
state of affairs"
Charles n. Fowler of New Jersey,
chairman of the committee on banking
and currency of the national house of
representatives, read an interesting pa
per on Necessary Financial and Cur
rency Legislation" at the meeting of
the Minnesota Bankers association this
afternoon. He spoke of a large amount
of preliminary legislation that would
be necessary before the currency system
could be reformed Mr.. Fowler said:
L he AlQTlcn Ulll 10 SlHply d coHliuud-
ton of the present bad policy. an ex-
pansion, and not a wise one. All bank
currency now is secured by government
bonds, and the Aldrich bill would allow
more currency to be issued on state,
county or city bonds.
"Whatever form that bill may take,
think it is not good one. 1t will only
be necessary for the banks to borrow
batch of bonds from the insurance COM
panies, from time to time, when they
want to issue currency.
.'AIy plan is to allow the issue of cur
rency to certain percentage of bank
capital. 1t was 25 per cent in the last
bill. 1t might be made as high as loo
per cent after the system was put il
good working order. This is the system
in Canada, and that country borrowed il
from Massachusetts,, where it was in U.S.
before the war, and Massachusetts, Dor
rowed it from Scotland.
''if all the farmers and farm laborers
and small storekeepers were accustomed
to the use of checks, there would be NJ
use for any currency expansion in thii
country. But they are not. They wan