be sharply reduced as would the hold actions for changes of address (since_ 

 a change of residence does not always involve a change of financial organ! 

 zation) . i 



Supplanting large numbers of individual checks drawn in favor of and mailed 

 tofin.nci.l organizations with an electronic funds transfer system (EFTS) 

 would offer further advantages. First, the receipt of every payment to a 

 beneficiary by credit to his account in a financial organic ion. on a , 

 timely basis, would be a virtual certainty. Second all ^"J" I"™*"* 

 in the issuance, delivery, and parent of Treasury checks would realize 

 substantial economies and vastlv superior operating Procedures through 

 elimination of the individual checks. (The Treasury has established for 

 itself a long-range goal of paying at least 40* of all """^^^ 

 payments bv credit to accounts in financial organizations under an F.FT system 



Figure 1.2 shows the May 1973 volume of social security payments processed 

 by each disbursing center. 



-5- 



