Full text of Mimeograph Letters and Statements of the Board : Letter From a Worcester, Massachusetts, National Bank, Number 691, Volume 3, Page 1361

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1381

691.

LETTER FROM A WORCESTER. MASSACHUSETTS■ NATIONAL BANK.

Referring to the Par Collection System which you are to
put in operation about July 15th, I have no doubt you are hearing
from a great many banks who are against the adoption of this system,
but hear very little from the many banks who are in favor of it. Some
of the Texas bankers are back of a propoganda to stir up all the banks
of the country in opposition to the Par Collection System.
The banks in New England, are much in favor of the adoption
of this system for the reason that, in New England something similar
to this was adopted several years ago by the Boston Clearing House,
by which all country banks remit to the Boston Clearing House at par,
as you knowi
This has been very successful and very satisfactory to
the country banks as.well as the city banks.
I well remember the opposition of some of the country banks
at that time. Their arguments were the same as the Texas bankers are
making now, - that they were going to lose the exchange charges which
they were making.
They did not seem to figure that these items would
be made up by their not having to pay exchange on items which were de­
posited with them on other- banks.
In fact, many of them did not re­
alize that they "were paying exchange, for their city correspondents
were taking out several days* time which amounted to the same thing.
I trust you will not be deterred by this opposition which,
as I understand, comes from the Southwest, and I venture to predict
that after it has been in operation for a year, they will all realize
that it is a good thing for all.

6/7/1916.