Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-10-01
The Operations OF our New Clearing

The fact that the controlling committee Of
the new banking clearing house association IL
composed OF some Of the best citizens Of the
District, both in probity Of character, wealth,
and Identification with its interests, aside from
the wen known stability Of the banks forming
the same, should inspire our business commu-
nifty with confidence, and for the short time in
which it will be necessary to use certified checks
rs . medium Of exchange, there seems to be no
good reason why our mercantile interests should
suffer. Viewed in the light Of reason, the
shrewd man Of business cannot fail to see that
he is amply secured. customer calls and
buys an invoice Of goods, tenders q national
bank note in payment, and il is received readi-
ly. And why? Because, forsooth, securities,
covering the whole issue OF the bank are In the
custody OF the government. Now, what Is the
difference with the certified check? In point Of
double assurance the preponderance of safety
is in its favor. The check received according
to the laws OF the association, is secured not
only TO lis face value, with collaterals, easily
hypothecated, but double its value, and safely
deposited in the vaults of a corporation
whose presiding officer enjoys the high
est character for integrity and honesty
Even in case Of the failure OF any bank in the
association nothing can be lost. Not a check is
used by the banks that is not at the meeting of
the ASSOCIATION (held daily secured by collat-
eral. Should such a contingency arise, which
IL Is id'e to anticipate, the association take
the securities of any such bank held by them
and dispose OF them for the redemption Of the
certified checks they may have issued. The
checks are eventually redeemed, when the ne
cessity for them no longer exists, ,by the banks
issuing the same. either by checks on other
banks or additional collateral The checks thus
issued can also be transferred IS q note. Now
the only real difficulty which presents itself in
manner calculated to impede business opera
lions with merchants and dealers from whom
they purchase, IL the need Of Q system Of ex-
change with other cities. This the controlling
committee expect to overcome In q day or two,
and when arranged for, merchants In New
York, Philadelphia and Baltimore will receive
the checks In payment OF goods as cash. All
men Of business are familiar with the obstacles
which surrounded the mercantile interests,
when the change Of . circulating medium was
made from gold to currency. 1t required few
days TO make the community familiar with the
new order OF things, and soon after everything
worked smoothly. So win it prove with the
present system. Arrangements are also in
progress with the banks of other large cities,
through which it is anticipated banks and bank
ers will receive the checks on deposit.
After the meeting Of the controlling commit
tee had closed last evening it was ascertained
that up to the close OF business hours yesterday
the amount Of checks issued for the day footed
up s21 $50, and the day previous SIS 26S, max
ing total thus far issued of S40,14s the same
being secured by frst-class securities amount
ing in the aggregate to upwards of 500 900.
But few of these checks are In the hands of
the public for general circulation, as each bank
at the nightly meetings redeem the same BY de.
posting colaterals against them.