Banks, both national and private, offer another means of exchange. Any one having money deposited in a bank to his credit may give to a third party an order on the bank for any number of dollars and cents not exceeding the full amount of his credit. These orders on the banks are called Bank Checks. They differ from paper money, as their acceptance depends upon the credit of the one who draws (or signs) the check. It is usually made payable "to the order of" some one. The party presenting the check must be known in some way to the bank authorities.
The use of checks adds to the circulating medium, and is a benefit to the community at large. It leaves actual money for minor transactions. They are in far more extensive use than any other form of money order. Checks often pass from hand to hand as money before they reach the bank, and then are seldom cashed - usually deposited. Over a hundred million dollars of checks daily in New York alone are not cashed at the paying teller's window, but pass in "exchanges " through the Clearing House, which is an association of the banks of a large city for the purpose of conveniently and quickly transferring checks they hold for collection. This saves an immense amount of time and labor, which would otherwise be spent in handling and counting the money, and also lessens the chances for mistakes.