MILK CHEQUES

Stratford Evening Post, Volume I, Issue 74, 6 March 1931, Page 5

MILK CHEQUES

EFFECT OF NEW POSTAGE SAVINGS BEING MADE Dairy companies are among those who are seriously concerned at the postal increases, states the "Dominion." A dairy company of even quite moderate size posts its suppliers from 4,000 to 5,000 cheques annually. In addition, there has been a considerable increase lately in the practice under which suppliers give merchants orders for monthly payments on cream cheques, the dairy company acting as a collecting agency. The combination of stamp duty and postage therefore promises to become a considerable item. In an attempt to effect economy in this direction a northern dairy company has circularised Us suppliers requesting permission to pay their cheques direct to the bank each month.

The circular points out that the banks are agreeable to accept one cheque for the total lodgments, the dairy company furnishing a statement showing the allocation of the cheque. The company also proposes to abandon the practice of posting the monthly credit notes, which will he placed in the suppliers' cans in future. It is pointed Hht that the new method will not only save time in the company's office and on the part of the bank staff, but will also obviate the necessity for suppliers making out pay-in slips and in many cases posting their cheques to the bank, this in turn requiring the bank to forward an acknowledgment. The company in question anticipates that it will save about £6O a year by the method it now proposes to adopt.