The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-12-20

Bank money orders received "A prominent place
In the discussions at the bankers conventions
this year. and II would seem that the banks
are going to make strong and more or less
united effort to get a larger share of this bust
ness than they have had heretofore.
All these discussions seem to deplore the
small profits the banks obtain from the sale
of exchange. and every plan thus far proposed
contempates increase in the earnings Of
the banks from charges made for furnishing
drafts. or money orders they to be called.
for remittances. 1t is said. and no doubt with
truth that the banks better equipped for
transactng this business than either the post
Office or express companies. and that they ought.
with proper efforts, to get the bulk of this bus
mess Banks are naturally the proper agents
for carrying on such transactions.
The bankers have been agitating this mat
ter for many years. and at last seem to be
making some Roadway in accomplishing their
plans. 1t is said that the money orders issued
annually by the banks and express companies
aggregate upwards of $500 900. 00O This is prize
worth contending for. and no wonder the banks
are seeking eagerly find the surest method
Of capturing II.
There is an easy way by which this might
be done: let Ii be known that the banks will
issue drafts or money orders without any charge
whatever, and the competition of the postoffice
and the express companies would disappear. II
is possible that such step would be even more
profitable than the revenues that will be de-
rived from the sale of the exchange under the
new plans that apparently find favor, and from
the announcement made some time ago by the
Bankers Money Order Association IL would
seem that this Is the view that is held in one
quarter at least. This association not only
offers to supply banks with money orders with
out charge. but to permit the banks TO remit
for these orders, by checks themselves at
stated intervals. Here Is a recognition of what
to be the fact-that the of money for
the average life of draft money order is
where the real profit lies; and il may be that
the banks in seeking for the profit from the
sale of exchange. instead of making their Gus
toners checks available everywhere, or posi-
bly, going further and furnishing exchange free
to everybody whether depositors not. as Is
done in some foreign countries. have been like
the dog crossing the stream and grasping at the
shadow OF the bone in his mouth
The question of greatest moment would seem
to be to find that policy that Will most surely
attract the largest amount OF money into the
banks thus increasing the volume of lOanabe
funds. To put tax on country checks or to
devise means of getting big profit as
possible from selling exchange may not be the
best way to achieve this result IT is OF course
only right that the banks should contend for
the profits of the money-order business now
panies But the problem seems to be larger
than this. 1t involves the whole subject of
checks and drafts and the profits to be obtained
from increasing the service which the banks
render to the community. The country check
problem, which has been dealt with in such
different ways is far from any definite set
tlement.-Bankers Magazine.