Review

During the most recent recession, the unemployment rate rose to its highest level since the depression years of the 1930s, reaching 8.9 percent in May 1975. The unemployment rate has since declined and stood at 7.9 percent in August of this year. Despite this decline, unemployment is still unacceptably high, with 7.5 million persons reporting that they want to work but have not found jobs. The unemployment picture has been aggravated by increases in the unemployment rate in recent months. Besides contributing to fears that the economic recovery is weakening, such increases intensify pressure for adopting policy measures designed to reduce unemployment.

Developments in electronic funds transfer systems (EFTS) have long been a popular topic of discussion in banking circles, but as the above quotation from a national business magazine indicates, the subject now enjoys even wider currency. Although it does not appear likely that we are on the threshold of “the checkless-cashless society,” recent developments have been so rapid that predictions of future developments and effects of EFTS often seem foolhardy at best.