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Fifty Pine Street, New ¥ork, H. Y. August 23, 1934. Mr. Mariner Eccles, Asst. Secretary of Treasury, U. S. Treasury Building, Washington, D. C Dear Mr. Eccles: You being from Utah and I having been born and lived there in Salt Lake City many years, I feel free to make a suggestion that I think is simple and would lessen risk of loss and check many hold-ups such as the payroll robberies and the $4£7,Q0Q one reported in the papers. In your position you can make suggestions that will be given attention and actea on. Suppose you surest that Federal Reserve and all clearing house banks, members of Reserve system. s u g ^ s X to their depositors who are employers, of say five or more people, to stop paying employees in currency but by check that would oe aDout as convenient ana eliminate carrying and hauling around a lot of money amounting to millions daily in most all of the larger cities. The large merchants cashing checks would bank more checks and less currency. The employers could pay all labor and office employees by what you could call (and print on it) a pay or pay-roll check drav/n as near as possible on a near-by neighborhood bank or branch bank. On back of a standard form of check could be printed in small type a form of indorsement that would make the check almost as negotiable as currency. For instance—"I within named payee consent to (or authorize)that this check be paid to the bearer thereof Within Named Payee. • jielow which signature line could be printed a form by which the cashier, treasurer or other person signing check as or for maker, could guarantee—for instance Signature of payee guaranteed Cashier or Treasurer. -2- M. Eccles, August 23, 19£4 In practice the man or woman v/ho could not conveniently cash their pay cnecks could ask delivery official to guarantee his or her signature after which most any store could take the check the same as money or party could walk into a bank personally. Under the printed name of the maker, up in the left hand corner, could be printed: "The payment of all genuine pay checks of the above named employer issued in an amount of less than $100 has been guaranteed.^ The firm could take out a policy of an assurity company to protect the clearing house or his bank if his own credit was not sufficient. Employees should be asKed to not pay all employees on the same day of the week. One group could be paid Mondays; another group on Tuesdays, etc. wnich would stop the Saturday and Monday accumulation of money or withdrawal from banks for that purpose. It would also make business better on mid-week days and not put the bulk of spending on Saturdays and Q unaays in restuarants, theatres, bars,etc. Vvhen merchants or other ousiness houses took in checks, they could stop the liability of robbery and end the bearer feature oy putting on their own bank stamp, for instance--For deposit in First National Bank to the credit of Jonn -Doe & Co.'^ and take checks to the bank at their convenience every day and actually lessen the amount of cash on hand to nandle their customers. It would not cost much to have oanks use a standard form which all looked alike, except the printing of name of bank and name of maker. I note your prominence in public lire and I am proud of you as a Utah product. truly yours, GES:EB George E. Sanders. TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE: To August 50, 1954 Mr. Eccles FROM R. L. Hoguet, Jr. I am inclined to think that Mr. Sanders' suggestions might well be workable. There are, however, the following objections: first, a delay would result at the time of payment as it would be necessary for both the payee and the paying officer to sign the check at the time of delivery; second, despite the measure of protection which would be afforded banks by the use of a form such as Mr. Sanders suggests, there is no doubt that their expenses would be increased by handling so many small checks; and third, the present check tax of two cents would, of course, be a major deterrent to any company having to pay a large number of employees many small amounts, although I understand that the chances are that this tax will not be renewed when it expires. D#ar Mr. t 18 a In which you .. • as l a -"•• r<l I i Of chicle • ussd. .for psyroll loa sua . a tard fora eacior. baa tt - I Ml inclined >: . ".i:.t ..:.-"r i . i i | NOT idc would da i to prsrent holdu. B / r o l l robberies Sfl • I MM to VI to be the follovii.. | :i.;>as: f l r s t | a ?&U$- WG9&& . : ittXt i't the ti|M • . >a necf i officer to - tlsa tf delivery j seconu, despite t ue . i .. i Lcb •i i s no doubt th&t tlu I i I so MftV g a a i l checks^ and tai.:-u, > cents (|0»02) K>uld, »l cour.-. : peiQF havtaf to pay a 1 . However, I or. .d »has i t expireB. I sh;j.Ii tars your U . . -• ! over to t •; -v Asgi Mr* George £• &M& Fifty Fia It t, York, Sew fork* • - : .. .• i t .. t »«d by h;M - •; • \x of ti to any coianmwitti : I I not . I » . For your iftfoxmtiORj ratJit?r • 1 ... rtoil p« •• .; La a i t# the -
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