THE CHEQUE BANK.

Taranaki Daily News, Volume XXXXIII, Issue 13, 17 January 1901, Page 1

THE CHEQUE BANK.

. The C i que B»nk, which in now to ba paced in Viiantiory i'quidktion by its , oirettyi'., vas an ingenious attempt to ■ brifsg tlii tdwntagoß of banking with- ' n the reach of the masses in England. So great fcn t.ulhotuy an Mr. fctauky Jevuua thought veiy i.ighly if it when it wig EUrtaJ, and, although it has now admittedly outlived its dny, theio is >o qaoition that it haa done »osae gond work It wa» registered i» its present form on Ma'ch l#t, 1876. ILe capitnl wan 8<u&!1 £52.380, io £lO ihar.;?, of which £'26,190, or £5 pi r ofcn-re, ««a called up. It WBB designed cn-i conducted on a *ery safe bttsit, I>owi v«r, ard a largo capita! vras > ot rrqc.itt-ct. It proceeded on the printipiu of issuing cheques which could be filitd up tn'y *o limited amounty, »»nhown bj 1 printed and in-d-,!il,l« peifiratod t-oticei upon tbe tt.run 'iitibe chiqu&e, tco, wtro cn'y 10 bo h.d in for tha ulmosu cum fir which they c;uld ba drawn, which sum was ret.iued aa a dt posit until each orraspondiug cb'quo bad prui>ei.tid. For example, before a cuntomur c»uld dr»w cLcb<qiefor £5, ho wou:d hnvw to piy £5 ir,to tha back, and he ivotiid rictivo a cheque marked •'Good tp to £5," or v.ord* to that ilf-ct. He raigK fill it i» for £5 or less, but uot fjr mciore thin that tmount. li< followed thufc a cuttomer could not by any metns overdraw bii iccoonl, anil that) bar the risk of forpeiy, a Chrque Bank cheque, aa Mr. Jtvons puis it, wlei duty filled up aiiil B'goid i y th • owner, *as ai good as a bank nolo )t>snid Bgaimt a dccuncntary ruatr.o. The Ohiqao Bituk eucoioi int; r latiou with ulnar h*nks, irot only «ii nvei' tiio Uuitod Kiugrii.m, buu wiib a numbor of b*i>ks as veil, ai.d these bunks •. s d t:<> seil its cinques to ttio publio (.i d cssh tk'.'ai oi pr-SMntation. Tusy wi re. L-i: eflji ii'mi fo r making small rein t a c » iy p st., Lc which purpow th> y * tie to (i hnudier utd cheaper 11 a • Hi'' cul-futhi. nod moo»y oidurr. prc. uu U-c latter in wan, and, ind • rt, t,l if, iif ce.!>;uy 'o »pply a Q olli ■•» sua wmt white cert tin fuims are ii>. dup A definite offioaof paymont

\ iDU3t be select d f and tho receiver of the order c*n o- %uu payment, as a role only by applying personally at) the o{£m, and giving the nama cf the lender, A rather heavy scvle of commission had als3 to ba paid. A Oheqaa Bink ohiqie coat only one penny and one-fifth of & penny in excsts ot the sam remittrd, was payable at almott any Bank in the United Kingdom, and in mist foreign towns. It is said by Jevons that the issue of every money order by the English involved tha filling np of y eijjhb of nine forms, and the amount •of labor requisite swallowtd up the reveane. The simp iolty and economy of the '.Jh'tjae Bank system were in striking contrast, and afforded an iiln<tration of how much better businrsi is nsaaliy done by a privata company than by a Government depart mar. t. In dae time, however, the Poet Office learned the lesson, -and isioed postal ordfrs —or postal - stores, as they are called in New Zea■iand hssed, open, so that they can /be made, pay abe to any person and at »ny post effic ■, while the rate of commission was also very much rtdaoed. No doabt this was the first nail in the coffin of the Cheque Bank. Another saems to have bo an th 9 facii that recently there have been tather extensive forgeries of its cheques, lb has, therefore, now " had its day," and will flhortly "cease to be." If it had done nothing else, however, than bring abont the reform in the cimbrons money-order, rystem, it cannot te said i) have existed in vain—Chrietcbnrch frets.