The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1907-12-06
CHECKING DEPOSIT
Present Financial Distur-
bance Means Extra Work
for Banks.

Il
40 much money to pay out but they
ire daily engaged in opening up new
accounts with people who formerly
neld certificates OF deposit and other
small depositors. This means con-
siderable extra work as the amount of
business done on paper through the
,anks has of necessity naturally been
greatly increased, When confidence
y again restored and there is sufficient
money in circulation to carry on the
enormous business transacted in these
United States the general impression
is that the recent trouble will have
accomplished much good.
In talking along these lines the
Duluth Herald said in recent issue
that st is stated that one effect Of
the measures taken by the local
banks to prevent tiie local supply of
cash from getting out of town and
holding on to all they Ca n get. is that
there has been large increase in the
number of depositors carrying 'check-
ing accounts"
cit is probable that this is one re-
suit that will be permanent. No one
who has taken up the practice of de-
posting his earnings and paying his
bills by check is likely to go back to
bhe old way Of trying to keep the
cash on hand and to pay it out to
| LradeSmen.
Most of these new checking ac-
counts come from small depOsitOrs
who have not hitherto thought of do
ing such thing. They receive their
earnings weekly or monthly, and if
they deposited any money at all they
took certificates of deposit or opened
saving accounts
"The checking account is conven-
lent at all times but it is especially
C 'nvenlent now when the available
supply of cash is small. 1t relieves
the depositors OF all the inconvenien-
ces of the present situation. No mat
ter what form money takes, he can
use it by depositing 1t to his credit
and drawing checks against it for his
personal uses.
cit is not only real and valuable
convenience to the deposition. but it
will help relieve the general condition
by lessening the demand for current
cash. The available money will be
able to do four or five times as much
work when deposited in the banks as
it will when it is carried on the per-
son or hidden at home.
The danger of losses by theft or
otherwise are very obvious, and no
man who carries his money with him
or leaves it at home can be secure. Fl
But perhaps the chief gain from
leaving your money in the bank is
from the economical side With nine
ty-nine out of hundred people money
in hand is a temptation to spend mon
iy. Ii you haveit in the bank the
temptation to spend it is very much
less
Besides, when you don't have your
money in the bank you have no check
upon its outgo. and there are humid
reds of little leaks that you don't
suspect. If you bank it and draw
checks against il, you will know just
where it is going and you will be able
to put your finger on the leak, if
there is one, or the extravaganza, il
you happen to possess an extrava
gance."
"Many man of small means has
had the checking account practice
forced upon him by conditions. He
found it hard to convert his pay
checks into cash, and he discovered by
depositing them and drawing checks
against them to pay his landlord, his
grocer, his butcher, ETC., all difficulty
was removed.
1.-THE gain in economy was merely
an incident, which he had not looked
for; but having found it, he will prob
ably continue the practice of carrying
a personal checking account. If by
the new enconomy which this breeds
he builds up a balance. he can trans
fer that to savings or time deposit
where it will draw interest.