Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1873-10-31

all The banks, the amount due each, and
the amount due from each, and these du-
plicate amounts, in the hands of the clerks |
aud on the desk of the manager, must be |
balanced before any clerk leaves the room,
50 that all mistakes are prevented from get
ting into the banks. Ii any occur In the
clearinghouse, they are discovered, aud in
some associations the person making them
is fined a small amount, When statements
are completed and proven, each clerk goes
back to his bank, bearing with him a state
ment of assured correctness, showing the
total amount the bank owes all the others,
and the amount owed each, or as the case
may be, the amount drawn from each. Lat
or in the day, at p. M, in New York, the
debtor-banks begin TO send TO the clearing
house the amounts they severally owe, as
shown by the statements, and these arc
sent in a single sum, so that the First ma
tional sends in one package all the money
it owes all the other banks The clearing
house manager receipts for each amount,
and then distributes ii, SO that when, an
hour later, the checks of other banks ar
rive, each receives in single pile the a.
mount due his bank from all the others.
The great advantage of the system Is
shown by the avoidance of errors between
banks, and by the saving Of time. The
amount of money TO be transferred from
the banks to the clearing house is very
small compared with the bulk of the OK
changes. In the first five years of the estab-
lishment of theNew York clearinghouse
from 1858 TO 1S5S-tho clearings amounted TO
$50, 675, 1888 500 SO, whilc the amount Of spe-
Gle and coin certificates in which the bal
ances were then paid was 1854, 43O, 800 AZ.
| But the transfer and counting of this a.
mount of specie was found to be trouble
| some, and before the clearinghouse had
existed I've years the system OF coin GER
tifcates was established. The bank of
America was made a common depository,
and each of the associated banks sent there
It's coin and received in exchange certifi-
cafes, which were good in settling balances
| at the clearinghouse. This plan rendered
| the amount of specie used in settling bal
ances very small, although its representa-
| tive was still current, and finally the last
vestige of solid money disappeared from
the clearing house when the lega-tender
act of 1862 went into full effect.
| In London is a clearing house, in which
the clerks of the respective banks make
| their settlements by Il personal interview /;
| a much clumsier and more expensive
method than that used in New York and
other cities in this country. From this
London house, however, the first idea
sprung, aud it was, like most British no.
tons, improved upon being translated to
| American soil. The ''canny Scots" who
are engaged in banking in Edinburgh, en-
joy the advantage of a clearing house, and
they use to make their settlements ex-
chequer bills, of which a special issue for
the purpose is made by the English gov
ernment.
In England, mos. of the principal rail-
road companies are interested in clear
| ing-house, which was established in 1910,
for the purpose of adjusting their accounts
with each other. Railroad accounts in
England are more complicated than here,
because the lines are SO much shorter than
here and consequently each item of traffic
involves accounts with diverse roads. Then
| the items are more numerous tnan BeTc, as
the railroad companies there do all the ex-
press business ('parces" they call it,,
which here is done independently. Be-
| sides, the roads use each OF er's engines,
| and run trains over each others track,
more than is done here. Each station sends
daily to the clearinghouse a statement of
receipts for goods, passengers, or 'parcels"
shipped from that station, written in black
ink and each sends likewise statement of
| items received at the station written in red
| ink. The statements of the movements of
the different kinds Of carriages over each
line and Of engines is also sent, and from
these the clearing house makes and adjusts
| all the amounts between all the companies,
| and the balances from the debtor com an
les, are settled monthly, or, in default, are
charged with interest.
The British postal department has a clear
| ing house of its own 10 clear the amounts
arising between the various local Offices in
drawing and paying money orders, and the
color of the ink used is as in the British
railroad clearing house mode of use-all
| the statements of orders sold are written in
black ink, and of orders paid, in red ; and
as a consequence of the system, the final
amount to be paid to or collected from each
| Times.