Observations about how money-handling has changed
Published on August 12, 2024 at 12:02pm CDT
Stoneage Ramblings
By John R. Stone
Recently I was thinking about how we handle money has changed over the years. The thoughts were provoked by Target announcing it would no longer accept personal checks at its stores. And also news stories about some people in foreign countries are experimenting with not accepting cash at stores either.
So much for “cash is king.”
When you think about it cash is an issue for stores. Cash can be stolen in a burglary. Cash can be stolen by less than honest clerks. Cash has to be counted multiple times, usually the till has to balance then someone has to check how that matches the day’s sales. Then a person has to get it to a bank.
Cash used to be the most trusted way of transacting business. Then people started to worry about documentation, a transaction’s cash source, and more so it seems that the preferred method of payment is a credit or debit card.
I can remember when stores here in Glenwood had what were called “counter checks.” A store had check blanks from various banks. A person would just fill one out and sign it, and when the bank received it, it would figure out whose account from which to withdraw the money and whose account to which it should be added.
Counter checks went away and more regular checks were the only checks used. Checks had “float,” a term used to describe the amount of time between when you wrote the check and when the money would be taken from your account. It was often several days, which was handy for folks who ran out of money before payday and needed groceries.
Back then checks used to be returned to the account holder after they had cleared the various banks. Now that is all electronic. As soon as that check hits the bank it is scanned and the financial part of the transaction, the withdrawal from your account and adding to someone else’s, takes minutes if that. Checks are destroyed but you can see a picture of one on your statement.
Credit and debit cards have become the big thing now. Stores don’t have to count cash, their account is credited nearly instantly. It is harder for thieves to slip a dollar or two out of a transaction. Stores pay fees for that service but they feel it is worth it.
My first credit card back in the 60’s was a gas card. I think the only cards available then were gas cards and Dinner’s Club cards for use in some restaurants by people who traveled a lot.
We lived in Germany for 15 months when I was stationed there in the Army in the 1960s. No cards there of any kind. Everything was cash. My rent off post was payable in German Marks so it changed every month with the exchange rate between the U.S. dollar and the German Mark.
In Vietnam we had fake money called Military Payment Certificates. They were good in the PX and some folks in the economy would take them but mostly they were to avoid having soldiers play black market games, the U.S. Dollar was much stronger than the Vietnamese currency. You had to have a checking account to send money home.
Now some businesses, like our electric and natural gas utilities and phone services, go directly to our bank accounts and take the money out. I’ve been nervous about this, what if someone makes a mistake and adds a zero or two and wipes out my account? It pays to check those statements they send out beforehand!
My kids and grandkids laugh about those concerns, they were raised with plastic cards and often don’t carry a quarter to call home on a pay phone. Oh, that’s right, pay phones are gone too, the kids all have cell phones now.
All these changes are being brought about by people further up the food chain than me. I’m not sure I like all of them, but they didn’t ask me so I’m not holding my breath now awaiting for them to call before the next change!