The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-12-03
CLEARING HOUSE LOANS.
A Movement ON Foot In BOston to AboI.
IslI the Custom.

BOsTOS, December 2.AThe existence and
circulation for signatures OF paper pledg.
ing tho signers-reprcsentativGs Of Nation-
al banks-to discontinue the practice OF
making loans to other banks ut the Clear.
ing house, has caused considerable com
ment. One bank president said the refus-
al TO make the loans may have the effect
Of lessenlng to small degree the
business Of loaning between banks,
though, Of course, II banks want
TO borrow or have money to loan
they will find way TO accomplish it By
the present systemthe work ofloanng and
borrowing Gun be very readily done at the
Clearing House. But II should be done by
men-responsible officers Of banks-nther
than boys or messengers, who, In many
cases, are intrustcd with the making Of
settlements, etc. II Is true that many Of
the banks are always represented at the
clearing house by their presidents or cnsh.
ierS, but many arc not. This should be
remedled; but, beyond this, | do not see
that there Is any need Of Il radical change"
Another bank President said: "l'he
movement In question was inNuyurated by
one or two persons, who seemed TO think
that the present condition Of affairs calls
for some action Of some kind or other on
the part Of the Boston banks, because one
bank had failed. But ! cannot sec any
thing that calls for such action as that
proposed, or II single good reason why IL
should be taken. The custom. OF banks
loaning to banks at the clearing house is
one which, to say the least, affords great
convenience in the general transaC.
tion Of the banking business. It's iacil.
itates the business Of the borrowing and
londing at place and time when II can be
best and most readily done, and, in this
way, Is n benefit 10 the community, for, Il
bank were short in It's balances and could
not readily borrow the money, II would,
therefore, not be in 30 godd n condition 10
discount as II 1t could cover its shortage by
demand loans, which the balance In liz
favor the following day might make good"
One OF the oldest bank presidents Oi the
city said ~ think tho proposed change Is
moi only uncalled for, but will work
great harm to our banking and bust.
ness interests. II II Is adopted II will
change Our whole system Of banking, and
the tendency will be-whilc giving TO n
few Of the loaning banks sort of mo.
nopoly which they will take advantage Of
in Increased charges for accommodation
10 make discounts more diilicnlt'and ex.
pensiye TO merchants and business men,
and create, perhaps, sttingency in the
money market that will seriously affect all
kinds Of business. The talk that the Gus
tom Of loans at the clearing house Is pc.
Culiar TO Boston should have little weight.
The cashier Of a prominent bank, on The
other hand, was in favor Of the movement.
lie said: thanking Is business which
needs conservative treatment We know
how a too ventursOme policy generally
ends. In our opinion, the custom Of loans
al the Clearing House by National banks
affords too many facilities for banksto Dor.
row. In my opinion, every bank, like
every merchant doing business, slolld'do
its business on It's own capital, and should
proceed as II there was not tan0tlet bank In
the city"