The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-09-12
SETTLING BIG BALANCES.
Operations of the New York Clearing House
Vast Transactions Speedily Adjusted.
Special to the Indianapolis Journal.

Special to the Indianapolis Journal
New YORK, Sept 11.-In the revival Of busi-
ness the encouraging clearinghouse returns of
the great centels of trade are studied by mer-
chants and bankers with increasing interest.
The clearing g-house, by the way, is one of the
strictly modern inventions of business men, and
illustrates anew the fact that business in this
epoch has become science. SIN former times, /"
says new literary celebrity in France the Able
Roux, literature was an art and finance busi-
ness. Now, their positions are reversed" This
sounds somewhat cynical, but it has a certain
ring of truth Like all inventions, the clearing
house came when it was most needed The re,
strictions upon banking in this State, which
were due doubtless to the early efforts of Alex
ander Hamilton and Aaron Burr, pioneers in
finance as in politics, were removed in 1848,
and thereafter the growth of banking in
however, the methods of the banks were the
came as those of somo small town From each
bank clerk started out every morning with ac-
counts against other banks. and it was frequent
ly o'clock before he could finish his work
Often he was so hampered by the large sums of
money which he carried that it was compare
lively easy for couple of able bodied thieves to
rob him of all he carried. After a number of
runners" had been robbed. a detective or a con-
stable, as the policeman was called in old days,
the transfer of hundreds of thousands of dollars
by messenger became risky that in 1853 fifty
two banks met and agreed to form q clearing
house. One was already in existence in London.
and with some % innovations % to suit
plan was adopted. By this plan, of course,
all the accounts which one bank has against an
other are taken to one place. namely, the clear
ing house building, handsome structure at the
corner of Pine and Nassau streets. It frequent
1ry hat han
dollars due from another bank, which in turn
has an account for the same amount. or about
that sum, against the first named. The traus
action can be settled at the clearing house by
checking it off or by the payment of a small
sum without the risk involved in transferring
ST. 0O0 600 or anything like that amount by mes
senger
The largest balance that any bank ever re-
ceived at the Clearing house was on Nov II,
1868, the amount being $40 $50, All 81. Some
times, on the other hand, the balance due to a
bank is not more than 81. This recalls the
fact that in New York business check was
once made for SO cents The late Isaac W.
England, once publisher of the New York Sun,
was some years ago in charge of Frank Lesie's
illustrated newspaper and made checks for 81
because he wished voucher for all his expendi-
lures. There was once, moreover, speaking of
small things, an error in the accounts OF an in
terror bank with the sub-treasury here of 6
cents Thomas G. Acton, the Assistant Treas
check until this error had been corrected and
notified the bank that he must have the cents
He got it. The expense TO the United States
government of securing the cents must have
been much greater than the sum involved but
the bank in question was more careful about it's
accounts thereafter. The average amount of
money required to make settlements at the New
York clearing house is only about per cent of
the total transactions, and the daily business is
done in an hour and half
William A Camp is the head of the clearing
house of the metropolis. He is of medium
height of slight build, with clear-cut and intei-
gent features. He boards in fine house up
town, and has eight or nine rooms, which have
cost him 5000 month fox the last ten years
He is sixty -four years of age, and native of
Connecticut, whittier his ancestors emgrated
early in the seventeenth century. He was many
years ago dry goods merchant, but about 1852
entered bank, and in the following year when
the clearing house was established, he became
its assistant manager Since 1857 he has had al
most unlimited control of its affairs He has
always lived WE'LL and at times is confined to
his luxurious rooms with the gout Yet even
there he attends to business by means of mes
sengers. He is a man of strong will of positive
convictions, and very thorough and accurate in
business. He is a connoisseur of the fine arts
For years he acted as one of the hanging com
mttee of the Academy of Design, and his purse
has always been open for the relief of unfortu-
nate artists. OSCAR WILLoUGHBY RIGGS.