Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-09-26
BANK FIGHT AGAIN RENEWED
ON CHECK COLLECTION PLAN
telegraph instructions to shift the
ownership back to New York.
Economic Saving

hSUUOIiIAC
Telegraphic clearances are made
every day by all twelve federal re-
serve banks which, in turn, are act
ing as clearing houses for the mem
her banks in their districts. There
is a constant shifting back and forth
of the ownership of this gold. The
big economic saving is that there is
no loss in the float because all the
time this gold is serving as reserve
for note issues and the risk Of loss
by robbery, by wreck or fire to
which actual shipments constantly
were exposed disappears entirely.
Also. the banks save the express
charges which they formerly had to
pay on the shipments as Well as the
heavy insurance rates.
This saving accrues chiefly to the
banks themselves. The greater saw
ing accrues to the public. The banks
passed on to their cutomer, so far
as possible, the cost of all this ship
ping and they made what profit they
could from the various transactions.
The collections Of 10 to rs cents on
500 would amount to big figures
on $1,000 and $1,O00,000 checks. 1t
totalled about $75,000,000 a year.
It is a rule that all banks which
are members Of the federal reserve
system will cash checks without
charging these fees. AS most of the
big banks of the country are mem
bers, it is seldom that the fees are
encountered excepting in some Iot
the southern states. In the south,
however, hundreds Of banks have re-
On tNo l.
pate in this par check collection.
These banks desire to continue the
collection of the exchange fees as
they regard it as one of their princi-
pal sources of revenue.
Strong Campaign
A strong campaign has been car
ried on by them against the system
and they have argued that it is a
part of the general aggression of
| the money trust which controls the
big banks to force the smaller in
situations out of business by depriv'
| ing them Of this source of revenue.
| They have declared that the federal
reserve banks have overstepped the
bounds of fairness and even of legal
| ity in extending the system and have
sought to coerce small banks to en-.
ter the system by discriminating
against them and attempting their
ruin.
There have been law suits in
which the federal reserve banks have
been rebuked for coercive measures
and in which the constitutionality
Of the plan and the propriety of its
general scheme have been upheld
Both sides have won rounds and the
fight was thought to be over, as
nearly the entire country now is on
par collection basis, when the
chamber of commerce sent out It's
referendum QUESTIONABLE.
The chamber asks it's businessmen
members whether they want the ole
system of paying to have checks
cashed or the new system of having
a check pass for its face value in
the same manner that a piece OF
United States currency passes.
The result will be known in a few
weeks. 1t is expected that the ma
iority of businessmen will vote in
favor of the par check system, bit
fair vote is expected on the other
side because many businessmen will
be found in sympathy with the small
southern banker who wants to stay
in business and requires this source
Of revenue to assist him.