Iron County news. [volume] (Hurley, Wis.) 1913-1950, 1923-06-09
A HARDWORKING
PIECE OF PAPER
The Bank Check and How 1t Per-
forms Many Different Serv-
Ices for Business.

Americans are the greatest users
OF bank checks in the world. Less
than eight per cent of all business
transactions in tho United States is
conducted with money, or, to put II
another way, more than nine out of ten
transactions are conducted with com.
merciai instruments. of which one OF
the most important is the check.
The use of the check has become
universal in America because It is one
OF the simplest yet most efficient bust
ness devices ever invented. The bank
transactions Of Mr.. Smith, the store.
keeper, illustrate In a general wav
those of all other business people.
storekeeper SNiths customers nav
him for the goods he sells to them
ooth with cash and checks. At the end
OF the day he coants up the proceeds OF
the days business and finds his sales
nave amounted to, say $500 What
does he do with this money? He owes
a large part of II to the other business
concerns from which he purchased at
Wholesale the goods he is selling.
Soms OF these companies are in Mr..
Smiths town, and others are located
at somc distance from 1t. Even small
business would be a clumsy, compll.
Gated and tlme-wastlna affair unless II
were for the facility Of the bank check
When a Check Is Useful
Mr.. Smith could pay his bills by
sending cash by mail, but this method
OF payment would be unwise, because
OF the danger of the money being
lost In transit. Again, he might 20 out
AID buy express or postal money or.
ders for the amounts due, but to do
this regularly would require a great
deal of his time, and would involve
needless expense. Besides, money
order does only half the work a bank
check does. Although II is in reality
a kind Of check drawn by the ex-
press company, or by the post office,
In favor Of some person or firm. II ia
not returned to Mr. Smith after II has
been cashed, but goes back to the ex-
press company or TO the post Office
that issued II. On the other hand. a
the bank and is cancelled is returned
to Mr.. Smith, who can keep II as re.
ceipt In proof Of the fact that his bin
has been paid.
More than this. In order TO keep
accurate records Mr.. Smith wants to
have one account in which all his re.
ceipts can be entered and out OF
which all payments can be made He
therefore adopts the course that most
other business men and women fol
low. He takes his $500 to the bank,
where It is safely kept and can be
drawn upon as needed. The teller en-
ters the amount in a small pass book,
which is a record OF deposits The
pass book is issued In Mr.. Smiths
name and Is handed to him, together
with a supply Of blank checks Mr.
Smith IS now ready to pay his bills
by checks up to total OF $500
A Complete Record
His check will be received at any
bank where the Endorsement 0t the
person to whom II is made payable
which IS written or stamped on the
back OF the check, is known to be
genuine. The bank receiving the
check will either pay or credit # TO
the payee, and then send It on 10 the
bank In which M. Smith deposits his
money, where tho amount viii be de-
Quoted from his $500 balance. The
check. after being properly cancelled.
will be returned to him at the end Of
the month. He will then have a com
plete record showing that he deposit
ed $500. that he drew checks OF, say,
1920 to pay some OF hts bills, that he
has a balance left Of $3.50 and that his
bills have been duly paid as shown by
the cancelled checks with the indorse.
nents upon them.
The bank will pay all checks pre-.
sented to It bearing Mr. Smiths sig
nature as given on his signature card
IN any sums cover by the amount Of
his bank balance. which he contin.
uaily increases by deposits and de.
creases by checks drawn against bis
account This process OF making de-
posits and issuing checks continues
day after day both the depositor and
TIE bank keeping their own records.
Millions OF such transactions are
handled every day by The banks and
trust companies OF the United States.
Il one year more than two hundred
and ffty billions OF dollars IN checks
have passed through the New York
Clearing House alone Payments u
these vast sums are made without the
Use OF any actual money. A wonder.
ful system has been bui,t up BY the
gss Of the small alp Of paper We can