New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-06-14
BANKING SIMPLIFIED.
WORK OF THE NETWORK CLEARING
HOUSE.

WORK OF The NEW-fOkk CLEAhlNd-
HOUSE,
THE NEW BUILDING OF THE ACKNOWLEDGEMENTS
OF THE ORGANIZATION AND DETAILS OF ITS
TRANSACTIONS BANK ACCOUNTS EASILY AD-
JusrEp-nIsroRY OF THE CLEARINGHOUSE AS
ISOLATION.
The New-York Clearing house will to-day
take possession Of quarters ut Pine and Nassausts
This important factor in the banking interests Of New
FORK occupied years upper floor Of the New
York Bank building at Wall and wiamss., but the in
adequate means Of access and other incOnve-
nicnccs induced the Association to look about
for more com.nodious apartments Tho difficulties
OF the Bank OF tho Commonwealth, caused by
the panic 1879 making necessary the sale Of their
building, at Pine and Nassau-sts. gave the Clearing
house Association the opportunity they had been seek
ing. Tho building sold at auction, and pur-
chased by the Clearing house for SLY 900. Work was
Immediately begun in making tho necessary alterations
1T an expense OF $4,000. The building has plain
but substantial brown-stOne exterior with front OF
37ia It on Nassais and so feet Pine-st. and Is
five stories high. The first floor is occupied by the Tenth
National Bank The second and third stories are the
quarters OF the Clearing house Association the en-
trance to which is from Pnst. The interior is hand
somely finished In black walnut, with panclcd winscot
ing of pleasing appearance. The walls and ceilings are
hard finished and escOed In and elaborate designs
On the second floor the first room TO the right aiter
ascending the stairs, is the SETTLING ROOM, room OF
irregular shape 90 by 80 feet handsomely fitted up
Directly In front of this room il the Bank Officers
Room" large airy apartment about % by 30 feet,
which DO used meeting room by the Bank Prcsi-
dents whenever the emergency may call them together
In front of this two small but neatly furnished
rooms which front NaSsaust. The corner room Is 10
DO used library and reading rooir The ADJOINING
Ia the Managers Room" and the private once
william A. Camp, the present manager, who has been
connected with the Association since its organization
The already described all elegantly fitted up
and arranged that they all he thrown INTO one
by opening panclcd folding doors.
Above these rooms is the "Clcaring Room" which Ia
reached by broad stone stairway in the rear There Is
also private stairway from the Managers Room The
Clearing extends the whole length OF the building
and looks on both Pine and Nassau sts 1t Is lighted
from "a windows each having two panes OF
massive French plate glass There Is also
| skylight extending the whole length OF inc
room which is Ornamentcd with handsome designs
In the rear of the has been erected small gallery
for spectators. In connection with the removal OF the
Cearns house to its new home, brief history OF the
| institution may be given. Tho old method OF
each bank making up its account against the other
banks with which had differences. and sending per-
son to adjust them being found cumbersome, dangerous
and costly, committee consisting OF f. W. Ednihnds oil
the Mechanics Bank James Pnnnett OF the Bank OF
America Richard Berry OF the Tradcsmans Bank. and
L. Everett Of the broadway Bank appointed In
August. 1853, to devise system OF simplifying the
mode of settling differences. After numerous scssohs
the present plan adopted and in October OF the same
year the Cleaiin ouse organized. anu mas cOhh-
ued In successful operation ever since, its usefulness
haying been demonstrated from tine start The gentle
men above mention Il were appointed Clearinghouse
Committee aud continued tn act rs such for FIN years III
1854 George Curtis. who was at that TINE wei
known in financial circles submitted plan to the banks
of this city for the organization OF bank associaon Ill
Guiding the present system OF Clearing house. and
combination for support in times Of financial dis
trss TINS adopted by 30 of the banks. ana Thomas
Tileson then President Of tIc Phcnix Bank was elected
Tie first Chairman holding that position for ive years
Shepherd Knapp then President Of the Mechanics Bank
was elected succeed him, and scrvcdone year IhehCo
ualsted OF the Manhattan Banking Association was
elected Charmau but held Office for only few days. as
he WAS taken sick and died after. Mr TlestOn was
again chosen, and the expiration OF his term d. "
Jones was elected. He succeeded by D. d. Verniye'
and he in his turn by Charles f. Hunter OF the Peoples
Bank, who still holds the office.
Few persons have adequate conception OF the enof
nous business transacted through the clearinghouse or
of the details of the work In the course OF days bisi
bans OF the city are necessarily the ucoors OF
creditors of many OF the other banks. and as they are
widely separated, the utility Of central Clearing
apparent. a. the array OF. bank messengers
begins 10 arrive at the clearinghouse, cach one
carving small sachel in whch the checks to pay
and the drafts paid. Having taken their places In
OF the desks which extend the length OF the roo
and are numbered to represent the different bahs-thc
number accordance with the date OF the organiza
ton Of the bank oSo represents the ank OF Ne"
which with exception the Bank oi Norm nnrc.o VI
Pbiudclpha-s the eldest bank in the United states nc.
hind each desk sits clerk from the bank 80 numbered
with u large sheet, which Is the name OF c'ch Dnk,
arranged In the order Of its number ana The amounts
which his messenger has against IT, as ,
Each messenger takes his place opposite me deSK S s
signed 10 his bank, win his envelopes containing .no
drafts and checks the different banks ana SIP con
tanning list of the contents OF the respective envelopes
At signal from Mr.. Camp. the messenger
moves forward to the desk next his own, ana
delivers the clerk stationed there the envelopes
by that desk The clerk takes the envelope
signs the slip and hands it back to the messenger who
moves TO the next desk, and SO until he gets back
where he started having delivered all the drafts ana
checks the banks with which he had differences ana
the exchanges delivered which under the old System
would have taken us many hours In addition 10 a.c
great saving time and labor, the banks have the au
vanta &c Of learning al once how they stand rs nc clerks
Immediately up their accounts and tue difference
brought the house by their respective ine-sen
gers is the amount due Ia or rom iir tieailnglonse
condition and settle accordingly. The clerks reported on
now report 10 thc official designated by the
Clearing house. to receive u me amounts ,mg
having placed in separate columns, the Official
looks In and II they balance no errors nave o
Cured and the clearance Is pronounce corcG. aa %
clerks at liberty Ia return to thci, RESPECTIVE Dak
II the columns do not balance the clerks are KEPT
and the accounts gone oyer IN me 'rr y % We @
The clearinghouse Association consists OF % mem
beers, representing 20 banSs There are ID panhs III 'o
city members ot the Associatoi ihcr combined cap
ifni hcuy 900 The total capital Of the ASsorli
tiun banks is ISL GG6OO The total traaeiluiis or the
Clearing hoi>c for the first year oi It's ORGANIZATION
reached the enormous slim of S607 SG7 .isJ 49, Fol
Ioviug j. a statement or the total amount OF traIsac
tons year from Oct IL. 1893, mp 10 Oct III VI
last year: 80 400 - ,..c .,o -oo 600 ooo 4.
is59.. s5asSIoGia Is 80. 2s,i2?.si7,2gl 4?