More than a year after announcing it would test an Internet-based substitute for checks, and seven months behind its original schedule, the Treasury Department has transmitted the first two E-checks.

The demo last week went off well. A $32,000 government payment was sent to GTE Corp.'s Internetworking unit, which deposited it at BankBoston Corp. Treasury's Financial Management Service then sent a second check, its amount not disclosed, to GTE, which deposited it virtually in NationsBank Corp.

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