Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-09-25

equally reticent. The house had under
gone heavy run, and It's demaad-loana
could not be collected fast enough to f0f-
I nish It with sufficient cash to meet such
a drain. All their securities we're good
aud negotiable when there was mar
/ ket; but he would say nothing further
: in regard TO their character. He ethought
| that
THIS DEPosIToRs WOULD LOSE -
He had no trouble with any bank and
had not borrowed s cent. He declined to
say how large an amonnt of deposits had
recently been Withdrawn. No banking
institution in bis opinion could continue
business at present ifthere was run on
it.
] THECLEARING-H HOUSE ASSOCIATION.
| At meeting Of the clearinghouse AS
| s0ciation, held at the MerchaAts' ma
tional bank to-day, Mr. Vermilye, presI-
/ dent Of the Merchants bank, presided.
The chairman of the loan committee re-
ported that ten million dollars Of loan
certificates, authorized to be issued to the
association, had all been taken out,
whereupon it was
ResOived, That an additional sum Of
ten million dollars be authorized.
/ The following resolution was adopted
Resolved, That all checks when GER
tilted by any bank shali be first stamped
or written payable through the clearing
house.
The following resolutions were also
adopted:
ResolUed, That in order to supply the
demand for legal-tender notes and re-
new impaired confidence, the clearing
house committee be authorized to pur-
! chase any part of ten million State
! bonds and TO procure the redemption OF
the same by the secretary OF the tfeasu-
| ~, the loss or cost of the transaction to
be divided among the New York ssso-
ciated banks pro rata Of the amount Of
their deposits, respectively, as shown by
! the returns Of last week; and that the
committee be authorized to assess the
shares of each bank by drafts in the
usual manner.
Resolved, That each member Of. the
| association consider it his special duty
to ascertain where such bonds can BE-
had, and to invite the participation in
this effort of every institution and indi-
vidual IN the community, and to report
the result to the chairman of the asso-
| citation to-day.
The following resolution was also
unanimously adopted:
! ResOtUed, That the President of the
United States and secretary of the treas
/ ury be solicited by the chairman OF this
association, by telegraph, to prepay the
1 outstanding United States bonds due on
/ the first OF January, 1874.
/ The following resolution was also
unanimously adopted:
/ WHEREAS, The banks composing the
| clearinghouse association, in order to
allay public excitement and restore i'm
/ paired confidence, are united together
4 by counting and averaging their aggre-
! gate reserves, and to that end have gem
| erously relinquished for the common
| good whatever superiority in position
| any of them possesses over their asso-
eiates; and whereas, it would be mani
/ testify unfair that any member declining
/ to participate fully in the arrangement
/ should derive fictitious credit reputation
| in the business of the community by
/ our self-sacrifiee,
/ ReSOlced, That any member so con-
I ducting himself shall be reported to the
manager of the clearinghouse, who
shall forthwith expel him from this
| body. and checks upon it shall be drawn
| by presentation Immediately to a spe-
cial agent appointed by him for that
/ purpose in behalf of the association.
THE CORRECT PLAN.
/ A committee Of the stock exchange
/ to-day sent the chairman ofthe clearing
! house committee their views as to the
/ proper course to be pursued by the
/ banks to save themselves from further
/ complications, and enable stock ex-
| change to resume operations with safety
/ to bankers themselves, and those whose
| interests they represent.
The committee say: 'FThe true plan
in the present emergency, in our opin-
! ion, is that those banks who were con-
Z tent to make clearanees with each other
should, TO the extent of their associated
/ capital, guarantee the payment Of the
! checks certified by the banks allowed
/ to enter into the Clearinghouse. 1t may
seem invidiOus or uDkind to deprive any
I one of the existing association OF banks
/ Of its connection with the clearing
/ house, but we must submit to your con-
/ sideration theta that in the present
state Of affairs it is necessary to have
1 the moral courage TO sacrifice the weak
members Of your present association
| rather than have all the banks of New
/ York suffer the
/ DISGRACE OF A SUSPENSION
/ of payments; nor need this step be taken
1 violently so as to cause undue losses to
| those banks whom the majority NAV
/ distrust. Such banks may be notified
to reduce their liabilities and curtail
/ their engagements. Within a day or
I two after that time, if the other banks
adopt or suggestion, we can with safety
reopen the stock exchange by first pass
! ing a law that all transactions of our
members shall be satisfied and COM
| pleted bya certified check on any one Of
/ the banks entering into a mutual guar
antee. These would ar once preclude
/ all demands for legal tenders arising out
of operations of the stock exchange; and
manifestation Of confidence ON the part
of the banks themselves, and CORE
| spending evidence of security in the sol
vency Of the banks shown by the stock
/ exchange would, in our Judgment, so
! influence the public mind that, instead
Of s1spending payments, cur banks
would be able to ~
/ PASS THROUGH THE PRESENT CRISIS
with unimpaired credit, to enable
banks who assent to our proposal to feel
/ that they are not entering into an un-
unlimited guarantee Of those whose
/ condition there is not now time to in
/ vestigate with accuracy. We would
| suggest that bank clea-ings be made an
hour earlier than at present, and that
on the discovery at the clearinghouse
Of any weakness on the part of bank
/ the president of the stock exchange
should be at once notified; that should
/ the bank thereafter be excluded
from the guarantee Of the as
Z taNH -
would recommend that the hours for de-
ivering stocks should not begin until
after the clearances of the previous day
had been made, as an offset to which
we would probably have to extend the
/ time beyond quarter-past two in the
evening. Our present limit for receiv-
| ing stocks is until three o'clock in the
/ evening, and possibly have to request
the bank TO remain open until half-past
three o'clock, SO Is TO complete the
days transactions. The whole arrange
ment, Of course,
TO BE TEMPORARY,
until the present crisis has passed and
matters resume their usual course.
We would further recommend the
adoption by the associated banks of
resolution that they will, for ten days
after the reOpening OF the exchange
call In any loans TO brokers which are
Sufficiently secured, but that on the con-
trary theg will, to the extent Of their
ability, make new loans upon approved
collaterals, at fair margins. BY the
adoption of these measures We believe
the present panic can be stayed, and
that confidence will return.
ISignedl ABRABI b. BANLISS.
EDWARD KING.
+. J.. CETTIk,C, JR -
HENRY 6. CHAPMAN
1QHN Z, GARLAND.
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