The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1910-03-01
HOW USEFUL IS
The CHECK BOOK
SIXTY. THREE PER CENT. OF THE
ENTIRE RETAIL PAYMENTS
MADE IN WRfTING--AND 70 PER
CENT. or WAoEs-WHoLE-
sALERe USE CREDIT.

The tremendous extent to which
checks and other credit Instruments
take the place OF cash in the ordinary
business of the country, and the finan-
cial questions and problems growing
out of this phenomenon are discussed
in interesting and timely fashion in
the latest of the monographs of the
National monetary commission. This
monograph was prepared for the com
mission by DIR. David Kinley, of the
University of Illinois, and appears UNI
der the title, The use of credit in
struments in payments in the United
States
There have been several previous
inquiries in Great Britain and the
United States in regard to the use Of
checks in wholesale transactions, but
1t was only with the inquiry Of 1894.
made by DR.. Kinley, that direct in
vestigation was attempted as to the
use of checks in retail trade In send
ing out series OF interrogatories, DR..
Kin1ey extended the list of banks,
loan and trust companies, private
banks, and savings banks Replies
were REQ eived from 1876 institutions,
of which 5.551 were national banks.
1880 state banks, 759 private banks.
4s2 loan and trust companies, and
7s4 savings banls.
Wyoming Banks Lead.
The aggregate retail deposits report
ed for all the institutions VIII re the
banks were made out properly were
$60,446.722. OF this amount $44,27s,292.
or 1872 per cent, were in credit docu-
ments. as against STA per cent in, 1896;
$13,314,650. or % per cent, were in cur
rency and $2,s52 $50, or 4s per cent.
were In specie, pretty evenly divided
between gold and silver.
The largest volume of deposits was
in the returns of the national banks,
where the percentage Of. checks was
74.7Athe highest shown by any class of
banks. The loan and trust companies
come next, with 1871 per cent but their
total deposits were only about one
eighth, OF those of the national banks.
The third in order of percentage is the
state banks. and the percentage of
credit paper in their deposits is 20 in
aggregate deposits o. fifteen and one
half millions, or about 40 per cent of
the deposits of national banks The
% Il
deposits of 1857, 00s. show 69.4 per cent
of checks. while the stock of -avings
banks. with deposits of s337,4s5. show
SAL, per cent of checks. The mutual
savings banks show 1913 per cent in
check deposits of $12,491.
The highest percentage of checks
employed in retail deposits In all
banks is in Wyoming, where the ratio
Is 1877 per cent New York comes next
with sos per cent and Oregon third
with SOL per cent. The only two states
showing q percentage OF checks less
than so were Maine, where the per-
centage was 5s:s Of deposits reported,
and Rhode Island, where the percent
age was 5s.5. #t&F
$35yo0O,0 900 Paid in Checks Each Day
DR.. Rinley arrives at the conclusion
that the entire retail payments Of the
country on a given day MAJ be esti-
mated at $55.974,121, and that of this
amount $35.43s.749 may. be considered
to be In checks, giving a final proper
ton of checks in retail payments of SO
per cent. "
DR.. Kinley says: "a, large proportion
of the business of the country. includ-
ing the retail trade, is done by means
OF credit Instruments. B. We are
justified in concluding that so or SC
per cent of the retail trade of the
country. is settled In this way. Over
| 80 per cent of the wholesale trade il
done with checks and other credit in.
struments. The use Of checks is pro.
NOTED in a measure by the payment
OF wages in checks. OF weekly pay
rolls reported by the banks. aggregat.
| ing $134. 100000 for the week ends rs
March 49,, 1909, 40 per cent was In
checks"