The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-12
CASHIERS CHECKS
AS GOOD AS GOLD
Merchants Say They Are
Ready and Anxious to Ac-
Cept Paper.
BIG PAY DAYS ARE MET
CLEARING HOUSE COMMITTEE
MANAGES FINAL DETAILS.

Several thousand dollars worth of
cashiers checks will today be put into
circulation by the local banks as cur
rency- The shortage of actual curren-
cy, owing to the recent money strin-
sency in New York, has made the issue
of these checks wise measure on the
part of the local banks. These checks
viii be accepted by local merchants in
payments of bills and for merchandise
just the same as currency
The present issue of cashiers checks
VIII amount to half a million dollars,
distributed among the local banks In
order to acquire these checks. which
are endorsed by the executive commit
tee of the Salt Lake Clearing associa-
tom, each bank must first deposit with
this committee sufficient collateral to
guarantee the issue. This will rake
every cashiers check just as good as
though 1t were government gold GER
tiflcate for the amount.
AT special meeting of the executive
committee of the clearing association
held last evening at the Alta club, the
details of the issue were worked out.
The different banks in the city deposit
ed their collateral, which was approved
by tho committee. The orders for the
cashiers checks and the denominations
were then placed with the Autograph
ing company. The issue was run off
last night. and will be sent to the
banks this morning before banking
hours. The greater part Of the. checks
were issued in denominations Of s.. al
though there were some SO and $40
checks made. Some of the checks were
printed last week. These were signed
up and issued to the banks yesterday,
though none will be placed in ciTcula-
ton until this morning.
Merchants Endorse Checks.
In payrolls, it is probable that
checks will be cashed partly with cash
and partly with cashiers checks. De
positors requiring money for use in
other cities will be given currency, as
1t is desirable that the cashiers checks
circulate only in Salt Lake and neigh
boring towns. This will facilitate the
Tedeeming of these checks as soon as
the money reaches Salt Lake from the
east. A small amount of the cashiers
checks will be sent to smaller banks in
surrounding towns.
In interviews yesterday, all of the
prominent merchants in Salt Lake ex-
pressed themselves as favorable to the
new form of currency. Each one said
that he would accept the cashiers
checks just the same as money, and
would be glad TO get them Some con-
Germs went so far as to announce they
would pay per cent premium on all
cashiers checks offered In payment for
merchandise.
Every merchant in Salt Lake has
the utmost confidence in the banks. One
man said that he would accept any
thing at his store that he could de-
post to his credit at the bank. He said
that if the clearing association would
declare that sawdust was good for any
amount at the banks, 1t would be good
for any amount at his store. In order
that there may be no possibility of
forging the new checks to be issued
today each merchant may on applica-
ton to the clearing association of his
bank, receive facsimiles of the sigma
lures appearing on the checks to be is
sued.
Three Big Paydays.
Three big paydays in Salt Lake yes
terday caused a heavy drain of cur
rency on the banks about town. but so
we'll has the reserve been handled that
all the checks We're easily cashed. The
Utah Light & Railway company yes
terday issued $4,000 in checks to its
men. Payrolls amounting to several
thousand dollars from the Rio Grande
and the Short Line railways were also
taken care Of by the local merchants
and banks.
Employees of the Utah Light & Rail-
way company lined up before the pay
ing teller's window at the Deseret Ma
tiOnal bank getting their checks cashed
yesterday afternoon caused a rumor
that there was a run on the bank
There were several hundred employees
of the company, each cashing his pay
check. The rumOr, however, did not
precipitate any trouble.
About town the merchants were i'll
prepared to cash the flood of checks
held by those employees of the three
companies who were paying off their
men who had neglected to cash them
before the banks had closed. Several
merchants ran out of cash early in the
afternoon. and for that reason could