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Each month, California California is right, about 180 million checks. That's nearly 2.2 billion per year. And this figure is growing at the rate of roughly 8% annually, Recognizing the need to offer improved services. The banking industry initiated some studies in the late 1960s. Very careful studies

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to determine if our current check payment system would continue to operate satisfactorily in the future and whether it could be improved to develop such a system required an industry wide effort. In April 1968, the Los Angeles and SAN Francisco clearinghouse associations created a committee to study

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and recommend arrangements for exchanging these automatic transfers between banks. The scope, the special committee on paperless centuries came into existence. The challenge was of course to find a practical method of exchanging payments and deposits automatically among more than 150 banks in California, it will protect the

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rights of all parties involved To meet this requirement to automated clearing houses were planned, one in San Francisco and one in Los Angeles to serve all banks offering automatic payments and deposits to their customers. In response to a request from scope, The Federal Reserve Bank of

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SAn Francisco, which already had the necessary technical capabilities agreed to operate the automated clearing houses on a pilot basis By August 1970s scope had defined the essential interbank exchange arrangements and procedures and had drafted the preliminary legal agreements needed to support the new payment services. Since

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then, all of the computer systems have been carefully tested and are ready for operation All right, okay, okay