Financial History Issue 115 (Fall 2015) | Page 37

By Bart Ward In 1915, World War I was in full swing, Einstein published his General Theory of Relativity, Tesla and Edison were ignored by the Nobel Prize committee, Gandhi returned to India from South Africa, Alexander Graham Bell made the first transcontinental call and Frank Sinatra was born. That same year, William Roy (W.R.) Hotchkiss founded what would become Deluxe Check Printing, in St. Paul, Minnesota. Checking printing at the time was regional and mostly used by the business community. Some 90% of businesses used checks for payment transactions, with the public using bank counter checks for their personal use. In fact, bank counter checks were often distributed by various banks to stores that then made them available to customers who filled in their names and addresses on the checks where they banked. When Hotchkiss started his business, America was booming from World War I, and the Federal Reserve Bank of the Ninth District was located in Minneapolis. The Federal Reserve System had been created in 1913 through the Federal Reserve Act, and check clearing was part of the Fed’s job as mandated by Cong