The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-11-04
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Weis, DR.. Howatt, Charles n Mayer,
and several others.
All of the speakers reviewed the sit
uation in much the same manner as
Mr. Belman and discussed various
phases Of 1t. Finally Mr. Belman was
asked to submit plan TO relieve the
situation
He suggested that together, the five
banks of Hammond. should issue cash
ier's checks in one. two five and ten
dollar denominations TO an amount
equal the Standard Steel Car companys
pay roll and enough in addition TO Sc
cure the currency with which TO make
change.
This amount. which a committee of
business men in conference with the
bankers of the city decided should be
100000, is secure in two Jays. First
the banks have agreed to deposit bonds
or other acceptable collateral in some
safe deposit vault the key 10 which
shall be held by the business mems
| financial committee. Secondly, the
money is secured by the draft which
is received from the Standard Steel Car
company for the amount of its pay roll.
As Good as Greenbnck.
This double security makes the cash
iers checks as good as the greenbacks
that are issued by the United States
government and as they will be pay
able TO bearer they will circulate the
same as money.
For instance when a Standard Steel
Car company employee receives his pay
next Saturday it will be in the form of
cashiers checks. If he is paid $39.75
for his two weeks work he will get
three ten dollar. one five dollar, one
two dollar and one one dollar cashiers
checks together with rs cents in cur
rency.
Should he desire to pay his board
bill amounting to $3.50, he will present
a IS cashiers check and receive in re
turn so cents in change. The boarding
house keeper will present this check TO
the grocer in payment for his groceries
and the grocer will accept it as cash
and deposit it in the bank to mis- credit
When the grocer desires to pay the
wholesale dealer he will pay him with
cashiers checks which will be payable
either in Chicago or New York The
Chicago or New York bankers may
turn them over to the Pittsburg
bank, where they will go through the
clearings house and will offset the $780,
600 draft which the Pittsburg banker
sent to Hammond to pay the employees
of the Standard Steel Car company.
Is Merely Temporary Makeshift.
In this manner the checks will com
plete the circuit and will, in fact, be tn,
same as the one. two, five and ten dol
lar bills with which we are accustome,
to make our purchases. In an articl,
in the Sunday Chicago Tribune. Ray
|
lions a large per cent of the business
of the country is done by checks an,
drafts and it will be merely the appli
cation of the same principle in small
transactions until more currency is pu
into circulation.
Cashier Elder of the Citizens German
National bank said at the meeting yes
terday that his bank would have an ad
ditional $4,000 in currency which h
is getting from the government an
the other bankers of the city are ais
making arrangements to get cash s
that the steps which have been taken t
| provide a substitute for cash will onl
i Aeed to be temporary.
The point was raised that If many o
81 the 81 checks were presented in pay
ment, say for a glass Of beer. the bust
ness man would soon pay out all c
his cash in change. The banks, how
ever, agreed to provide the merchant
$ with all the change they need in re
h turn for the cashiers checks and S
e this point was disposed of.
e When it appeared that all of I'll
It business men had a clear understand
: ing of the plan, the following resolutio
o was unanimously adopted:
s WHEREAS, several of the manufaC
s turing companies. operating in the cit
3 of Hammond, are eastern concerns, an
II have large sums of money on depos
a in eastern banks and
If WHEREAS, the banks of the ea
have refused and do not pay out an
/ currency, and it is therefore impossib
= for said manufacturing companies
IS procure any currency from the cas-
T. ern banks, although having large sun
i on deposit in such banks. and
.e WHEREAS, the banks of many citi,
10 of the country have and are issuir
cashiers checks, THEREFORE,
BE IT RESOLVED by the busine
men of the city of Hammond, Indian
; in meeting assembled, that the banl
II and trust companies OF the city
re Hammond be and are hereby request.
Is to issue cashiers checks, and that al
III bank or trust company Issuing SUI
II cashiers checks, deposit with a hnan
~ committee of six. to be appointed !
$ the mayor of the city. satisfacto
sr bonds or securities in an amount ECU
" to the amount of such cashiers chez
y any such bank or trust company MI
desire to issue. and that said securiti
s. or bonds be held by said committee
re guarantee the final redemption of SUI
Us cashiers checks, and that each of su
IN cashiers checks be signed in additi
L TO the signature of the cashier of t
respective bank issuing such check,
enc member of said committee.
ID For Air Regeneration.