V. Conclusion: Benefits for All

It is not hyperbole to state that the movement to electronic forms of payment has saved the federal government billions of dollars over the years. Without such staggering amounts saved, the government would look to taxpayers to make up the difference.

Indeed, with the Fed’s help, not only is the government saving more money, it is earning additional money on those savings through programs like the Term Investment Option. And the Fed is helping the Treasury collect money that may never have been recovered through systems developed for collecting delinquent debt.

President Franklin D. Roosevelt placed the first order for a $500 Series E Savings Bond in a radio broadcast on April 30, 1941.

Individuals are benefiting from the Treasury/Fed partnership as well, thanks to the many innovative methods described in this report. The Treasury and the Federal Reserve continue striving to persuade the remaining holdouts to take advantage of doing business electronically and join people like Nina, Patricia, Andy and Vince—the four hypothetical, though representative, examples described at the beginning of this essay. Whereas some people have made the transition from paper to electronics with great confidence, others have done so with a degree of hesitation and trepidation. But, once converted, nearly everyone has benefited from the convenience, reliability and security that electronic payments and processing offer.

There is no doubt that the electronic payments movement is on a one-way course. In fact, the Fed confirmed that electronic payment transactions in the United States exceeded check payments for the first time in 2003. The number of total electronic payment transactions, including nongovernment transactions, totaled 44.5 billion in 2003, while the number of checks paid totaled 36.7 billion.

With so much momentum on their side and a nearly century-old partnership defined by common objectives, the Treasury and the Federal Reserve will continue to work together to achieve the goals that make sense—and cents—for both the federal government and the public.

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