Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1905-04-20
BANK CHECKS AND MONEY OR.
DERs As CURRENCY.

business of the country. and Of the
danger which was likely to result IL for
any reason this was suddenly, or to
any great extent, contracted in volume.
1t is we'll known that to great extent
the business Of the country Is transacted
by the use Of ordinary bank checks. 1t
is estimated that at least a5 per cent. Of
the commercial transactions of the bust.
ness world are settled by this means.
Bank checks, however, have not usually
been thought Of as q part of the circulat-
ing medium or currency of the financial
world, but in recent very interesting ar
ticle by Charles A. Conant. one of our
most eminent financial experts. he has
shown that as a matter of fact they filled
this function to very large extent and
facilitated even the smaller transactions
Of business throughout the country very
greatly. One can easily realize that this
is a fact and also that the ordinary
money orders issued BY the postonice
department which may be endorsed to
other parties. and so made disable for
more than one transaction, are also to
great extent a part of the currency.
That this is Il very desirable fact all
agree. as any means that facilitates the
easy and safe transaction of business
tends to its enlargement and profit
In addition to these forms of business
paper, to which every one Is accustomed
there are coming into use other forms
which are going to play very large part
in the business world. For number OF
years the American Express company.
and some Of the other express companies
also, have been issuing what they term
travellers checks" These were orig
inally used almost entirely for foreign
travel and have proved SO convenient and
safe method of carrying funds that they
are now used by very large portion
of Americans who go abroad Millions of
dollars worth of these checks are issued
every year by the American Express COM
profitable part of their business. They
arc now being used to a large extent by
persons who arc simply travelling in our
own country AS they make Il safe method
of carrying these funds. A special fca-
ture of the travellers checks is the
method used for identification. When
~
panies' agents the party who is to use
them places his signature in the blank
wishes to procure funds upon it he again
puts his signature on the corresponding
space at the bottom of the check and
similarity Of the signatures is all the
identification that is required. The checks,
therefore. is not good until the second
signature has been placed upon 1t. and,
| therefore. there js no risk in carrying any
amount of them that are not so signed.
A later development Of a similar idea
is what is called the bank money or
der" This is certified check that is
now being issued by savings banks and
similar institutions drawn upon leading
| banks in New York or other financial
| centcrs and which can be used for any
amount up to a certain limit printed on
| the check. This is not good, of course
| until endorsed by the party to whom
| it is made payable. and one can, there
fore, carry funds in this manner withou,
any risk OF loss until it is made good
| by proper endorsement. This will un.
| doubtedly make a large addition to what
IL called the currency system OF the
country.
! Still another idea which is largely ex
plotted is that put forward by new in
stituton recently started in st. Ioui
under the name of the peoples Unite,
States Bank This bank is organize,
to do business exclusively through tn
mails and not as an ordinary bank o
deposit. 1t has two departments. On
the other the certified check account
In the latter one may deposit an,
amount Of funds that onr cares to an,
receive all equivalent amount of Ger
| t;fed checks made out in a maine
very similar to the bank money orde
described above. These are payable ii
lea,,ing banks in various financial cen
tiers. and are therefore perfectly goo
wherever one may go. If this institution
carries out its proposed plan it will hav
extensive agencies throughout the coun
try to receive funds and give certific
checks in exchange. Both foru,s q
checks, the bank money orders and tn
Peoples Bank certified checks, ar
given without charge. as they DEEPEN
for their profit in the transaction upo
the USE of the money between the tim
it is deposited and the time at whic
the certified checks will be rcturncd fo
final payment. 1t will readily he see
that these means of creating what
practically a large part of our currenc
system, and which can be done by all
legally authorized bank without asklii
for permission from the government.
likely to have u very large influence
the future IL it has the growth which
may attain. 1t will also be notice
that this method attains in the fulie.
| manner what has bcen sb m,ch discus,