The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-11-04
WILL ISSUE PAPER TO
MEET STANDARDS PAYROLL
Merchants Agree to Accept Impro-
vised Currency for Cash-Meosurc
Precautionary One to Prevent Chi
cagO Getting Local "Dough'-H-
nanciers Propose to Guard Money.

In accordance with the plan that is
in vogue in other cities throughout the
country the bankers OF Hammond. rep
resenting its five financial institutions.
have agreed to issue cashiers checks IN
one. two. five and ten dollar denonalna-
tions as a supplementary currency to
enable the standard Steel company.
which is unable to secure the actual
currency, 20 pay their men the s10,0oe
which is due them next Saturday.
Three hundred representative bnsi-
ness men Of Hammond assembled At the
x. of F. hall yesterday afternoon at 3
o'clock in response TO call Of the
bankers OF the city and unanimously
agreed to accept these checks as cur
rency until the stringency in tie money
market Is relieved.
The meeting timely one, for IN
addition to solving the problem Of fur
nishing Hammond's largest industry
with substitute for cash with which
4 70 meet their pay roll. it gave the f.
nanciers Of the city indisputabie proof
of the confidence that the business men
! have in their banking Institutions
standard Pay Roll Responsible.
The necessity for calling the meeting
became apparent when the First Ma
tional bank of this city was called up
on, as usual, to make up the STANDARD
+, Steel Car company's pay roll.
The officials of the company IN Pitts
burg, forwarded their draft, as has
been their custom in the past. and ex-
pected the First National bank to fur
nish the cash.
The bank had ample funds on hand
\ from which the pay roll could be made
up, but its officials were well aware
Of the fact that ii they permitted sT6.-
600 I'm cash TO be paid out they would
be unable to send the $4,000 draft to
any Chicago, Pittsburg or New York
bank and secure the currency on it as
they used to do.
This being true. they were reluctant
to part with such a large amount OF
cash for they arc well aware of the
fact that much of the money that is
paid out in wages in Hammond IS spent
outside Of the city and 1t would not be
long before the amount of cash in the
bank would be depleted and there
would be no money left in Hammond
with which TO conduct the business OF
the city.
Would be Too One sided.
In other words If the Standard Steel
Car company continued TO send drafts
to the Hammond bank. the Hammond
DdUk t0HAliiAta ~ pay 0tA CASH AA1 the
2 pay rolls and the Chicago or New York
, banks would refuse to cash these drafts
J Of send the currency back 10 the bank
: to replenish the supply, it would soon
be depleted.
+ On the other hand. II the Standard
: steel Car company were unable 10 pay
their men, on account Of tho lack Of
actual currency. it would have to shut
! down and the business men would be
deprived Of the $4,000 that is now dis
tributed among them every two weeks.
IT was serious matter and required
the cooperation of the bankers and the
merchants as wei. They responded
: nobly to the call Of Mayor Becker and
at 2 o'clock over 300 Of as representa-
tive business men as have ever gath
cred together in this city assembled IN
ID the K of p. hall to talk over the mat
ter and decide upon some action that
" would relieve the situation.
Mayor Becker called the meeting 10
9 order and was elected It's chairman
I s z. Swain was elected secretary and
u Roscoe Z. Woods, assistant secretary.
6 ". G. Belman of the First National
I bank was Then called upon - explain
the situation. He said that it had be-
come necessary for Hammond banks to
protect themselves from the Chicago
banks which sought to draw upon their
cash reserve just as the Chicago banks
U found it necessary - protect themselves
n from the New York banks whIch 4
week or two ago were drawing on Chi
cago's available cash by Offering liberal
rates Of interest for ready money.
- He then made mention Of the ap-
> preaching pay day 81 the Standard steel
IL Car companys plant and showed how
'I the cash reserve OF the bank would be
ie Iessened If it paid out $1o.089 in cash
F. and was unable to get currency from
/ the Chicago bank 81 return for the
y Standard Steel Car company. draft II
vi was shown that II some means was not
IL devised to pas the Employees n sub
or stitute for currencv THAI would be ae-
~ ceptable % the business men Of the city
Is the plant would have 70 shut down aad
DC the city w-ould be a heavy lesser thereby.
er BeIman Is asked for plan.
r Mr. BeIman was followed by Mr