Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-09-26
The Course Of Banks In Other Cities.
Chicago, Cincinnati, New Orleans
and Philadelphia Adopt
Loan Certificates.
Partial Suspensions and Failures at
Various Points.
Several Southern Cities Embarrassed
Chicago.

CHlCAGO, OSpL' Zes-1 uc OlSSTlnS QOtAoo
Association held an important meeting last
night to consider the financial situation.
After an animated discussion, which lasted
till near O'Clock, the following resolution,
offered by Mr.. Coolbough, President of the
Union National Bank, was adopted:
Resolved by Chicago Clearing House AS
sociation, That until further action, and in
view of the disturbed conditiOn of affairs in
New York and other cities and the diff
Guilty of converting balances into currency,
and on the advice of the bank examiner, its
members be recommended and authorized
to suspend currency payments on any large
demands made upon them, either from
country banks or over their counters.
A number of croskers opposed such a
course, claiming that the Chicsgo banks,
being in sound CONDITION, could go on
paying and thus aid general business; but
the resolution was finally adopted unani-
mously.
CINCINNATI, Sept. 25.-The Cincinnati
Clearing House Association has just
adopted the following:
Resolved, That for the protection Of our
commercial interests and tor the purpose of
preventing a drain of currency from the
banks and bankers of this city, we do here
by agree to adopt substantially the plan
adopted in New York, viz: They will not
pay out currency on checks, except for
small sums, to be optional with the banks
upon whom they are drawn, but they will
certify checks drawn on balances in Their
hands, payable through the Clearing House
only.
The MOdus Operandf of Loan Certifi-
Gates.
The following are addit.o onal details con-
corning the action of the Cincinnati Clear
ing House Association this morning. Each
member of the Clearing House Association
is required to deposit such sum in sp-
proved securities as will at all times cover
the amount of their clesrings. Govern
ment bonds are received at their par value.
Railroad and other stock and bonds and
bills receivable, are received at Is per cent
off or the value fixed on them by the COM
mittee, Loan certificates are issued by the
committee, which certificates can only be
used in the settlement If balances between
banks and are not negotiable. The COM
mittee appointed to carry into effect and
supervise its workings are Williams, Hoop
er, r. r. Spinger, W. W. Scarborough,
jackson Evans and Oliver Perine.
New Orleans.
NEW ORLEANS, Sept. 25--A meeting this
morning of ali bank Presidents in the city
except two resolved to pay no checks for
more than hundred dollars All larger
checks are to be certified. The arrange
ment is to continue for thirty days. This
action they consider precautionary to pre-
vent drain.
The merchants generally approve OF the
course the banks have determined upon.
1t is understood a meeting of the Cotton
Exchange will be called tomorrow to a.
prove their action. Nothing was done in
Exchange. There is no unusual excite
ment about the banks.
The following address was issued by the
banks to-day: .. ...
''The undersigned incorporated banks
and bankers of the city of New Orleans de-
sire toinform the community of the motives
that sctuate them in partially suspending
the payment of currency upon their demand
obligations. Owing to the partial suspen-
sion of currency payments By the Associat-
ed banks of New York and other Northern
cities, and the con. equent refusal of West
ern and other banks to receive checks on
new ORR, as IN the regular course in
settlement of collections made here for their
account, we ascertained that a very large
remittance Of currency hence had been
made upon peremptorg orders within the
past five days. To such an extent indeed
has this prevailed that at the same rate only
a few days must elapse before our vaults
and the community would be entirely de-
pleted of the means essential to the ordi-
nary movemens of trade. '
ssAtthe present momeRt foreign exchange
is uDsaleable in New York, and as we de-
rive from this source our main supply of
currency, We are now thus derived of our
only means of restoring the amounts lost by
shipments to the West and interior. We
have therefore taken this step as means of
self protection, and for thu benefit of the
agricultural as well as commercial Interests,
and as the only means through which the
incoming or 'ps can be moved without ru-
inous sacrifice in prices. The duration of
this protective policy is limited TO period
of 30 days, during which time We are con-
fdent that dSily receipts of cotton and