New-York tribune., 1878-12-31
DIMINISHING FINANCIAL RISKS.

containing over F%OO,OOO III N"Sh' ~
happens that the bank has recovered
the greater part of the money, in thls case.
| Yet the event throws strong light upon the
utterly needless risks which banks and other
financial institutions now run in dong an lmpor-
tant part of their daily work. They pay to each
other in cash, every day, three or four millions
through the Clearing House. The risk IN
yOlyed j. not 10 be deSDised; the time 0t
! trIlsty messengers is considerable item Ol
! expense How much more is paid, not through
| Clearing House, by financial institutions to 9TH
crs outside of that organization, and to
! the United States Treasury, it is not easy to
say. but the amount is large. We pride our
selves in this country, upon the superior
economy and safety Of our financial
dryicrs and with reason. Great progress
/ has been made since the day when
/ the banks were obliged to send around to
! each other every day trusty messengers with
porf.rs or draws t9 make their settlements.
! Yet the robbery of last week shows that Il
! great deal of risk and expense can .yet be
| avoided, and the amount OF money required
| for tde performance of business m this city
! can still be greatly reduced by other simple
| devices.
During the year now closing the banks of
| this city have paid about 80, 100000 to
each other without moving a single coin
or Irgal-tcnder note. This ho- been
the amount of currency exchanges
! n the Clearing House. where all the
/ claims by each bank against every other are
/ brought together every day, and, the cT-
changes caucclling each other only the bal
aurrS remain TO be settled in cash. The
amount Of balances s0 paid during the year
/ hu. been about $962,GOo,0oO; for every
| 81 GOO paid. only about SIS in ac,uaI cash
| has been required. 50 far our commerce has
economical IN the use OF money. To make
uaymcnts aycra giny $GG0oO, 600 each day,
only ~. .VOO, 900 in cash has been needed.
No other country has IN operation "a
currplctc system Cf monetary economic,
as this country enjoys since the .cs-
| tabli-hmcut of the twcnty-thrcc clearing
! houses now in operation. The fact has
a very important bearing upon the
many financial questions which have
! disturbed The country, and especially upon the
amount Of money required in this as COM
pared with other countries. Yet there
remains an enormous businCs-, which
involves daily payments iu cash, and
! large expense and serious risk. Nearly
! urc whole Of these pay ymcuiS, also, could
! be mndc without The slightest risk. rs those
! effected 10y Clearing House exchanges are now
/ made.
The United States Treasury has now become
| u member in the Nrw-lork Clearing House
/ for the purpose ot srtthng claims against It.
/ But 40 system has We; been devised Tor ecOno-
/ mizng time rl'k and money III payments To the
| Treasury. 1t has recently been suggested By
! the Chamber Of Commerce that the Collector
should be authorized 10y law to receive Ger
! tited checks on city banks IN pay
mont OF dues. Inns would save a
! vast expense, but u "odld necessarily
/ involve some rSG to III" Government On the
! otner hand 1t would not help al all TO ecOno-
| mizc in the operations oi banks with each
/ other. A plan has recently been suggested by
| MIR. +. d. Tappan, president of the GaIatin
| Bank, which seems to deserve especial aIten-
I ton.
The banks now d'poSii III the treasury
nearly the whole oi thrr gold reserve, Tor
| their own convenience and safety, and have re-
ceiycd, until recently, coin certificates. transfer
able, but also liable TO be lost or stolen The
issue of these certificates has been stopped,
! hut the Secretary OF the Treasury still
has authority If he deems 1t cN-
! pedicnt TO receive coin ON deposit, giving
certificates Of other form If so, can
! he not permit the dopositing banks
10 draw against the com in Treasury vaults
belonging 10 them : In like manner the Ma
tional banks have deposited !egal-tendcrs
amounting to many millions and received
lrgal-tcndcr certificates in exchange. The
/ ,.r,r,.oI a. thgI instead uf tran u.tprn HE GER
| uGcates. the banks Of the Clearing House be