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Show Page 6' November 8, 1974 HILL TOP TIMES my- - Yoik B&r mwrw to a twnciau intititiom flwaw; c In 1974, United States citizens will write 30 billion checks. And this figure is projected to double by 1985. Each check must be individually handled and honored as instructions written on the face indicate to Let's look at the "Story of Checks" and see if they have a place in your life. whom money should be paid, how much and when. Can you imagine the task of when Amsterdam people learned to deposit their cash with "Cashiers" for a fee, rather than risk storing it at home. The "cashier" agreed to collect and cancel debts by way of their "depositors" out billion separate instructions and handling something as sensitive as money belonging to another person? This is done every day by the people who operate Federal Reserve System. The system of Federal Reserve Banks, that under the Federal Reserve Act signed into law by President Wilson in 1913, began a new era in the story of checks in the United States. carrying 30 National Clearing This system serves as a check clearing and collecting center for banks in twelve districts and provides a national clearing mechanism that eliminates lengthy rerouting and exchange charges on checks". Personalized Services So what does this mean to you? means that if you have a checking account with a bank It your choice, you can get personalized service in a matter of minutes from any bank in the United States and of Some experts say the Romans invented checks about 352 B.C. credit Others give to Holland in the 16th Century " In other checks. words, In England in the latter part written orders. of the 17th "cashiers" Century, were the called "Goldsmiths" who gave their customers "Goldsmith Notes", which were the forerunners of bank-issue- d currency. These vere simple and ink pen receipts promising to pay to the custormer, or "to his order." Thus the term that, still appears on every check "Pay to the Order of ." At that time, "orders" were written differently and carried precise instructions of the customer. In 1762, an Englishman named Lawrence Childs gave his customers printed checks on which to write their orders. In the modern sense, he l?came the first "banker." About this same time, another interesting event occurred. its territories. You get the same perAs the number of Cashiers sonalized service in a matter and Goldsmiths increased, so of a few hours, caused by did the need for messengers to changes in time ones, from carry the money transfers almost any bank in the world. from one money handler to Even if you transact most of another. One day, two your daily business in cash, messengers stopped at the there is a distinct advantage of same coffee house for a rest having the authority to "write and the conversation between a check" when the need the two ended something like: arises. "Hey man. why don't I give you these and you give me those and it will save us both a trip?" They did and. soon other messengers began stopping and trading bundles. Thus, unknown to the money handlers, the coffee shop became the forerunner of what we now call local "Clearing Houses" and the "Federal Reserve System." So much for history. The only thing it means today is that checking ac- counts and check writing are tried and proven methods of money transfers that have survived centuries of trial and error, good times and bad. Checks are not a modern idea, born of inflation, comdevalued money, puterized control, or any such rea on. They were created and still exist for the primary purpose of providing a means of trar.sf erring money from one person to another, without risk of loss or theft and having a permanent record, signed by both parties, that the transfer was made. Safe Method or Exchange Back to our times. Checks are used today to transfer nine out of every ten dollars transferred between peoph and businesses. You are on the receiving end of the check system because it is the method of money transfer used by all businesses today. Your paycheck, insurance payment, applications for loans or any transaction where a business transfers money to you is done by check. Businesses recognize the need for a safe method of exchange and a permanent record of the transaction. Even if you. go to the Credit Union for a loan, always notice that if you want the loan "in cash," a check is written to you. You indorse the document and the Credit Union cashes it for you. Sure, it costs money to write the check, but this small cost is well worth the permanant, legal record of money transfer that the cancelled check provides. If this method is so good that all businesses use it and is has remained virtually unchanged for 300 years of modern business and 2,000 years of money changing, shouldn't' you use it for your important business? Checks Represent Money reading for them while they devote their efforts providing fast, personalized service to you. One of these machines can read "what bank", "what customer," and "how much money" at the rate of 70,000 individual checks per hour. This must be done if banks are to handle 30 billion checks per year and still have time to give you personal service. Faster Processing When we look at the possibility of 60 billion checks, we must find a way to reduce that number or process them faster. Work is being done to do both. The U.S. Treasury issues about 14 per cent of the total This article started off with check volume in payments to 30 billion checks this year and businesses and people. When the possibility of 60 billion you consider active federal checks by 1985. payrolls, social security, those Can't you picture boys railroad and civil service in the Coffee Shop trying to retirements, this amounts to a trade this many checks and tremendous volume. In the future, you will be drink their coffee at the same time? hearing about such things as Automated Clearing House Yet it's ridiculous. Sure, one thing remains the same. ( ACI ) ; Special Committee on Each check belongs to an Paperless Entry (SCOPE); individual person or business and Electronic Fund Transfer and represents money owned (EFT). But don't let these names scare you. They are not by that person or business. Handling a person's money a machine takeover of your must be on an individual personal money. basis, and because many They are the tools man will people have the same name to use to get YOUR money where keep them separate and YOU want it, when YOU want distinct, banks began giving it. .as safe and fast as possible. each one a personal account Logically, the first step is to number. get your money to you as safe If you have a checking and as soon after you have will find this earned it as possible. SCOPE account, you and EFT are the processes on lower number printed the left corner of your personal being tested now as a way of checks. doing this. For example, an article in been Machines have to the so read numbers Sept. 1974 issue of designed in 'Government banks who work Executive' that people can let machines do the stated: 1 "A pilot project involving the direct deposit of monthly checks into banks or thrift institutions by the U.S. Treasury is now in progress with Georgia's 700,000 social security and supplemental income security beneficiariees. "The project is the first phase of a nation-widprogram to convert such e government payments to an electronic funds transfer system. "Treasury also announced that planning efforts will soon begin with the Veterans A- dministration, Railroad Board and the Civil Service Commission to Retirement extend the system to their recurring direct-depos- it monthly payments." Only Transfers Money Let's look at it this way. And remember, we are only talking about transferring money. Not spending it. That is, gett ing your money to you, not spending it for you. For the same reason that it is easier to carry and count two rolls of pennies than 100 separate pennies; a dollar bill instead of two rolls of pennies; one dollar bill instead of one hundred one dollar bills, it is faster and easier to write one check to transfer four million dollars of payfoll than 10,000 checks for one-hundr- ed each. This is essentially what SCOPE and EFT do. The Banker is given a total amount of money and you, the Customer, tell the banker where, when and how you personally want to use your money. You may want your money (More page 7) $400 PHOTO CREDITS - All photos in the Hill Top Times are from the Base Audiovisual Services Branch or other Air Force sources unless noted. ADVERTISING OFFICE Lake City, 277-633- Copy EDITORIAL OFFICE deadline Monday noon - Office of Information, Bldg. 1 102, Room 108, Ext. 7321 - MorMedia Sales, Inc., 354 N. Main, Layton 37e-5S18- Salt 8. 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