Complex sentence: New York banks quickly made the certificates of such deposits their clearing standard and the Demand Notes became the unit of account for dollar denominated obligations in the place of gold which had begun to disappear from circulation having risen to a 1 to 2% premium over paper.
Split into simpler sentences: New York banks quickly made the certificates of such deposits their clearing standard. The Demand Notes became the unit of account for dollar denominated obligations in place of gold, which had begun to disappear from circulation, having risen to a 1 to 2% premium over paper.