Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-02-22


Wyoming -swefe only $50. 995.@,.rhe state
whose returns show the a. lowest per
cent. among Athe state banks il Okla
honia, with 45.2 per cent. Twenty-Five
states returned percentages of 20 or
more. but less than IS. While Il showed
percentages of 60 and less than 20. The
lowest percentage of checks in deposits
was that of the state banks in the Dis
trict of Columbia; the figure is AS. 1t
will be noted that the percentages Of
the District of Columbia We're lowest
for the national banks also. 1t will be
noted also that Wyoming, which stands
highest in the percentage Of checks re-
turned in the state banks, stands sec
Ond, with S2.1 per cent. according to
the returns from the national banks.
Taking UP the table of aggregate
retail deposits for all classes Of banks,
| it appears that the average OF 1872 per
cent Of checks deposited by retail
dealers is not far from the average in
most of the states The wider varia-
tions which are disclosed in some of
the separate classes are brought
nearer to common level when the
whole mass of retail deposits in the
different classes of banks is thus
brought together. The highest per-
centage of checks employed in retail
deposits in all banks is in Wyoming.
where the ratio is S3.7 per cent. New
York comes next with 500 per cent.
and Oregon third with SOL per cent.
The only two states showing per-
centage of checks less than so We're
Maine, where the percentage was 58.S
of deposits reported and Rhode
| Island, where the percentage was 56.5.
OF the group of the largest CONNER
cial states, Massachusetts showed de-
poSts OF credit instruments to the
amount Of 77.3 per cent; Connecticut,
| 65 per cent. New Jersey. 662 per
cent; Pennsylvania, GIL per cent:
MARYLAND, 60 per cent; Ohio. 66.2 per
cent; and Illinois. 1915 per cent. TAX
| ing up retail deposits for all banks
according to sections of the country,
| the total amounts reported. with the
proportion of checks, is as follows:
North Atlantic division. total deposits
27.345. 061, of which checks consti-
tuted 15.1 per cent; South Atlantic
division, 3,325,252, checks 63.S per
cent: North Central division, $40,
135.315. checks 1928 per cent: South
Central division, $4,429.61S, checks 69.9
per cent; Western division, $5,211,410.
checks 75.7 per cent
These figures are not accepted by
Doctor Kinley without analysis and
allowances for errors in different di-
rections. After considering the proba-
BILE status of the banks which failed to
report, the question whether some OF
hn n1,n al-
cashed for holders instead OF actually
paid for goods, and what proportion OF
| the checks were on account instead o.
for actual purchases, Doctor kinley
arrived at the conclusion that the en-
| tire retail payments of the country on
a given day may be estimated at $o5,
974,121, and that of this amount $S5.-
l43S,749 may be considered to be in
checks. giving final proportion of
checks in retail payments of G3 per
cent.
! In concise summary of results and
conclusions, DR.. Kinley says in part:
"A large proportion Of the business
OF the country. including the retail
trade, is done by means of credit in
strumentS = We are justified
! in concluding that so or so per cent of
the retail trade of the country is set
tied in this way. Over 80 per cent. of
the wholesale trade is done with
checks and other credit ils truments.
The use of checks is promoted in
a measure by the payment OF wages
in checks. OF weekly pay rolls re-
ported by the banks, aggregating
S134 800, 900 for the week ending
| March 10. 1909. 20 per cent. was IN
checks.
THE transaction of so large a vol
ume of our business by checks is an
element of danger in times Of
stringency and crisis In such times
the uncanceled balances IT credit
transactions creates a larger demand
for money. but the habit of settling
by checks has meantime kept the
available amount of money at mini
mum.
consequently there ought to be
some means OF supplying additional
currency when credit as a means Of
payment dimnishes. This currency
| ought to be as safe and as uniform as
| the ordinary currency. and it should
be capable of being quickly emitted a1d
recalled.
The larger money circulation of
| the country is explained by the facts
that our prices and wages range
high; that our people probably carry
| q larger average amount of money on
| their persons than do foreigners; that
some portion of our currency has been
destroyed or lost or boarded: ana that
some of our money is abroad in the
hands of money brokers and others.
Finally, as our business grows. the
amount OF money needed as reserve to
| perform this vast volume of business
transactions increases, too.
The amount of money released by
| our credit transactions is not equal in
amount to the volume of credit in
struments but must at any time he
enough to settle the uncanceled bal
ances called for in money from day to
| day.
This demand for reserve has IN
influence in determining the valua Of
money on general prices, Just as has
the demand for money for direct pay
ment.
THE volume If credit transactions
very likely tends to increase as popu-
latiOn and business grows. 1t does not