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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.


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,


George E. Sanders.



August 50, 1954

Mr. Eccles


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.

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