Evening star., 1933-12-30
NEW YORK BANKS
AGREE ON CHARGES
Receive Flood of Protests
Against Service Fees
Proposal.
BY JOHN A. CRONE.
Special Dispatch to The Star.

opeCldL DlSpdtCn 70 Inc Staf.
NEW YORK, December 30.-The 1888
banks and trust companies in this city
that adopted "metered service plan"
which they submitted to the Banking
Code Committee of the N. r. A. and the
American Bankers Association, have
heard from many quarters in the last
two days.
Hundreds OF small depositors pro-
tested against the code, which would
make small checking accounts a luxury.
Big concerns handling thousands Of
small checks, such as milk, gas and
electric companies, voiced opposition
EngraVers Of checks saw their business
diminish. Owners Of armored cars as
serted greater use of currency would
increase their hauls.
Stock Owners Cheered.
Bank and trust share owners hailed
the proposals, which are expected to be
followed by banks in many cities, a
move to give financial institutions some
profits or at least to reduce losses now
incurred in the handling of checks.
These costs are estimated to average
from to cents each
Police officials predicted the greatercur-
rercy use which would result from the
closing of thousands of check accounts
would spread hold-ups. Business ma
chine manufacturers saw in the greater
analysis and bookkeeping work involved
under the ''metered service plan" addi-
tional machine sales and greater en-
ployment of clerical forces.
Bankers themselves did no talking for
quotation. One Of them. helping 10
form the code. said, Naturally Ws
strove to get all We could. We knew
that the code will be modified greatly,
so We wanted TO be in the position or
doing all the horse trading possible"
Under the Glass banking bill, banks
are forbidden to pay any interest on
demand deposits II is estimated that
if this law had been in effect in 1882
1t would have saved member banks OF
the Federal Reserve System $4,000, 600
in interest payments.
Agree for First Time.
This is the first time New York banks
have ever been able TO agree on service
charges In the past each bank sougnc
concessions to its own depositors, which
in the cloak and suit trade or the butter
and egg business would be termed price
cutting"
The new deal in banking would raiss
charges on a 5000 checking account,
now costing a depositor so cents a
month. where accepted to 50 II a month,
or s3324 a year. Such charges might
result In a greater use of postal money
orders. Several local department stores
indicated they might establish de
positors accounts" whereby the retail
shopper deposits money with the store,
then charge purchases against the
deposit.
The Uuited States Treasury would
not welcome any development that
brought about greater wear and tear on
currency, which now costs enough TO
keep clean and in repair. Lessened
use Of checks probably would not in
crease silver dollar circulation, unless
tailors made much stronger pants
pockets than at present.
What will the savings banks code con-
tain? That's what the little fellow here
wants to know. VIII the savings bank
also give him this sort Of new deal? He
will know within the next few days, for
the savings bank code is about ready
for fling.
(Copyright, 1881