Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1857-12-04
The New York Clearing House.


York The Independent gives the following interesting
account of the institution in the latter city:
"What, then, is New York clearing house? Only
very simple aborsaving machine 1t deals in masses
of figures and speedily accompshes great results AFFECT
ing to some extent the monetary interests OF the Unon
as this city the great money heart of the country
To many persons it may look complicated, but 1t IS not
The clearing house is the channel through which DAHL
flows the largest part OF the active capital OF New ork
It is in other words the medium through which the ex
changes of the banks made and settled In order to
give clear idea of what it u.s. some description OF the
former mode of making exchanges is necessary Long
ago there was but bank in the city OF New ork
tt was known as The Bank, and is now known as the
Bank of New York institution that, though OLD and
venerable, has passed through many season OF COM
mercial trouble always sustaining high character and
credit since The Bank first opened its doors IN !84
In due of time other Banks were establshed'
each of whom received the bills and checks OF the other
This made it necessary for them to exchange and keep
stated accounts with each other These accounts were
usually settled once in each week.
This system was continued till the year 1858, when
there were tyseven banks doing business in the city
of New York In the month of August of that year,
the banks were required by law to publish weekly
staatement of their business. The publication OF this
statement has been of vast service to both the banks
and the public. AS soon this law went into opera
tion great efforts made by the banks to make as
strong statements as possible and to this end they dali
" drew from each other their balance in coin. This
became very aborous and it occupied most OF the time
of the principal officers of the banks to attend to the
exchanges and settlements with each other and the por
tiers were kept on the run with exchanges drafts for
balance and coin was cared and carried all over the
city, day after day. at small risk yet when the days
work was ended the banks no nearer settlement
than when they begun.
This could not continue long in this inventive age
Soon after the weekystatement law went into operation
the association, known the New York Clearing House
| Association, organized by the banks
The clearing house is III feet long and "a feet
wide it contains two counters one on each side OF the
ROOM four feet from the side walls these Joined by
semi-circle counter at the lower end, and form
nuous counter which is divided by iron rails into spaces
each of which is occupied by bank. The
banks numbered in the scale of age the oldest being
known n l, and the desks arranged in like nu
merical order upon the counter. The exchanges are
made at ten O'clock A. NJ at which hour the clerks
called to their stations by the manageable settling
clerks upon the inner side and the specie clerks upon the
| outer side of the counter.
O'clock the specie clerks to the desk next their
right delivering their exchanges to the settling clerks
and receiving upon their statements the initials of the
settling clerks in each case, receipt for the amount
left with them and thus they pass from desk to desk
until they have made the circuit of the counter and re-
turned to their desks having delivered their exchanges
and having received receipt for each. The delivery
occupies from five to seven minutes, during which the
settling clerks have each received and recepted for the
entire exchanges sent against their bank. These
amount which they have received ascertaned and the
difference between amounts brought and those received
On the 18th of October 1853 the exchanges and set
Elements WERE for the first time, made at the clearing
house by the ftytwo banks which formed the asSOcia
ton Each Of these banks sent two clerks to the clear
ing house: termed the settling clerk the other
the specie clerk The settling clerk brought with him
statement upon which entered the entire receipts
of the bank he represented of the bills and checks upon
each of the other banks made up at the close of the
business of the previous day Also i'll the second column
the amounts added in each to the exchanges of the
mint receipts of the morning. these two columns were
united in third cumn, the total of which represented
the amount sent to the clearing house for exchange he
also brought ticket directing the clearing house to
credit his bank with such total amount. The fourth
column of his statement was blank, upon which
tered the amounts received by him from other banks.
The specie clerk brought statement, upon which was
entered the amount of the items for each bank brought
by him to be exchanged with column in blank, head
ed Received by The exchanges were bound togeth
er in packages, with slip upon the top Of each, upor
which was entered each item enclosed. The footngs O
these slips, of course, agreed with the amounts entered
both upon his statement and that of the settling clerk
The packages arranged in the order in which they
were to be delivered, for each bank.
This being done, the specie clerks return to the
banks with the exchanges taking statement of the
suit of the exchange. The settling clerk then prepare
debt ticket for the clearing house. showing the amour
they have received and the resulting balance, either fo
or against their bank If their work be correct the ag
gegae amounts charged to the banks the prooshee
u of the clearing house will exactly equal the amount ere
ded them and the balances which have become due t.
the clearing house from those banks which have received
larger amount OF exchanges than they brought will b.
equal to the indebness of the clearing house to suc
banks credited with larger amount than the,
debited, and then proof is made This result ha
always been obtained, and the difference of a cent
not be found the books of the clearing house In tn
work of one hundred clerks who have to enter and adj
e more than one hundred and fifty amounts upon thei
statements of course made but by rap
and simple methods not necessary to be described ar
always found out The proof being arrived at the set
ting clerks return to their banks with the precise resu
of the exchange It will be seen that by this process
fifty balances in each concentrated into one
a which is settled daily at one O'Clock
a At every annual meeting of the association, one Q
e the Banks is elected special depository. The Ban
of America has acted in that capacity since the organ
cation of the association In that Bank the associate
deposit such amounts in coin they choose for whic
g they receive certificates in of five hundred,
thousand five thousand and ten thousand dollars whic
% certify that the Bank of America has received sum
from the deposor to be held in trust special dc
post payable in coin presentation, only to the ore
of the Bank presenting the certificate that Bank ben
a member of the association. Either coin these
tcates used by the Banks for the payment of thei
It balances at the clearing house The fractional sum
Is less than five hundred dollars, paid in bank note
and coin to the exact amounts due In like currency
the clearing house pays its Indebtedness to the credtO
= Banks. The certificates endorsed until the
presented to the Bank Association for payment
never afterwards issued. The labor and risk of tn
transportation Of coin to and from the clearing house
and lost stolen could not be used they only pas
from the Banks to the clearing house. and in return +
the Banks. The Bank of America holds for the asso
citation, for this purpose about six millions of dollars
@ coin.
Daily at o'clock p. m, the spicie clerks of the deb
tor banks pay at the clearing house their balances ecey