New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-17

one by one, before they Will TO adopted, and most
probably they will be greatly modified II the reforms
adopted, each bank win doubtless accept them and
act up to them in good faith
The officers Of smaller bank who desired not to be
quoted said they had discussing the reforms. and
favorable TO the clause against oyercertineatiou
but had divided opinions regarding the other clauses
They proposed epter their prorests against the adop
ton OF the Report as it then stood.
The cashier of leading bank said that he favored
few Of the reforms proposed and objected TO others on
their individual merits and demers but objected 20 the
whole report proposes to eentraze power In
the clearinghouse. He OF the originators OF
the Clearin g-house system, aud remembered when 10
clear the weekly balances betwee the banks Wallst
crowded with brawny porters hurrying
from bank to another with bags OF goa
their shoulders crowding the vestbues OF banks
TO the Inconvenience OF ordinary business waiting 10
deposit their remittances obtain their balances Toe
great Inconvenience Of this method Of settling balances
originated the idea OF the Clearing house, and IL was e
tabished merely o machine to facilitate the business
Of the banks 1t not intended then that II should
be anything but lever to be worked by the banks Ger
tainy lever by which the banks should be worked
The banks used II a servant and not proposed
that 10 should become the master. But one pro
vision of the Committees report is as follows:
THAT the Constitution OF the Clearing house be
changed INTO articles OF association which shan u, ,e
signed BY the officers every bank or MEMBER UT r
fed by Its Board Of Direetorsp
This means that associate banks shall bind them
selves by written constitution TO do business only Us
their servant. the Clearing house, dictates. Other
banks with whom our own bank would be willing 70
transact business are be debarred from the associa
ton and business with them prohibited. while no DIS
erection is permitted the associated banks to doing
business with each other. They be compelled to
receive the and advance money all the asso-
ton. At present, II there is bank which we
know to be unsound, the cashier Of which
Is lid and extravaganza, which has crazy
speculations the street. refuse to do business
with IT, and in effect. ourselves from any
danger through its unsOund policy The proposed clause
IN question would do away with bankers right TO 20
secure himself The cashier thought the uterestpaying
policy was very bad because 1t led banks into all sorts OF
wild excuses OF speculation to the heavy interest
which II has pay deposits, but there were instances
where he would prefer to his discretion even in tha
matter He felt that the directors OF his BANK
would very strenuously oppose the reforms, and Hom
conversation with other gentlemen connected Win
banks In the Association he felt quite confident tha tue
committees report would be rejected or modified
Conversation with a number Of other bank officials
disclosed similar sentiment In regard to the report IL
was Furthermore generally conceded that In case the
report ia adopted the Stock Exchange will have to
establish bank or institute some new machinery py
which It's balances be cleared, and that the loss 70
the banks by the withdrawal OF brokers' balances VIII
be excessive.
An anonymous circular was distributed among me
banks ON Saturday, calling for meeting at the fih
Avenue Hotel this evening" of those bank officers "no
opposed TO the report OF the Committee OF Nihe'