The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-07-08

money order question was made by y.
H. HavilI. president of the Merchants
National Bank of st. Cloud. In speak
ing Of the system. Mr.. Hayin quoted
figures to show that the government
and express compares were doing
much more than their legitimate share
of the business.
"The money order system is unique
among the substantial, financial fac
tors of the world" said Mr.. HaVill.
Its business is Of enormous extent,
yet it is conducted without q dollar of
capital Of its own. 1t has the conf
dence Of the world. yet is without a
dollar of surplus. If all it's obligations
We're paid nothing would remain.
In regard to the competition be-
tween the banks and the postofice de-
partment we see every day blank
money order applications which are
sent out by the catalogue houses of
the cities, complete, except as to the
amount. These blanks are furnished
free by the postoffice department and
also by the. express companies. The
postoff1ce money order system was
organized thirty-five years ago, and
for thirty five years the bankers have
been holding the bag. We are now
commencing to realize that we have
neglected for all of these years a very
important and profitable part of our
business, yet we have only ourselves
to blame. But it is time for us to
wake up and let the postoffice depart
ment know that we are entitled to a
piece, Of the $3,000,000. they will earn
this year by our performing 95 per
cent of the work. If it were not for
the assistance of the banks the post
office money order would be rarely
seen, and think, in justice to himself
and the stockholders. the banker
should demand and receive fair COM
epensatien for, his work in this direc-
ton.
8. Let the Minnesota Bankers asso-
citation pass a resolution not to handle
the postoffice or express company mon
ey orders, issued from a banking
standpoint, without fee Make this
apply to everyone, including your de-
positors. Cash all others at par; that
is. those issued from nom banking
standpoint. 1t mas been suggested
that if the banks should refuse to cash
these orders issued by the govern
ment and express companies ar
rangements would be made with some
bank at a reserve center, where such
orders could be cashed at par, but I
hardly think there is any danger of
any such state of affairs.
by a combination Of all the banks
in any one locality or state it is pos
sible to drive the postoffice depart
ment and express companies out of the
money order business, and, by refusing
to receive for deposit or cash any such
orders. render it futile for them to en-
deavor to sell money orders at any
place in competition with the banks
Something should be done. Z we
are now managing our business we are
Simply branch. or an annex, of the
postofflce department and express
companies, and are receiving absolute
ly not dollar for our work.
Annual Reports Read.
The annual report of the secretary
Joseph Chapman Jr.. was very crafty
ing to the members, showing, as it
does, a membership at the present
time of 532. an increase of more than
100 during the past year. The report
dWelt at some length on the efforts of
the association to push the bank mon
ey order system; and a fattering prog
ress was reported. The report shows
that nearly all of the banking capital
in the state is represented in the as
ISOLATION, the total capital employed
by the 705 banks within the state be-
ing $36,6S8,000, while $33,174, 900 if this
amount was represented by the asso-
citation banks.
Good progress was reported regard
ing the protective work of the asso-
citation. many of the banks being
saved money by a timely warning of
the methods employed by swindlers
who were working in the state
The report of George H. Prince, of
st. Paul, treasurer of the association,
showed the financial condition to be
all that could be desired
The delegates and their wives were
entertained at a reception at the Com
mercial club last night. A banquet
was served, and a splendid musical
and literary programme was presented.
The entertainment was given by the
st. Paul members of the association.