Evening journal., 1888-10-04
CLEARING HOUSE.
The Record of the First Years Business.
How sach am anstitation Is Conducted.

The New Manager.
The EVENING Journal has published
since its first issue the daily statement Of
the Wilmington Clearing House This
statement probably is one little under
stood by persons not familiar with the
working Of financial institutions, The
purport of this article is to explain the
same and give history of the Whining
ton Clearing House Association.
The daily statement has this bearing on
business. II shows TO a certain extent
the condition Of the money market,
whether it is circulating freely or not.
1t indicates the volume Of business trans
acted, and shows whether trade is dull or
active. The fluctuations can only be
thoroughly understood by men conver-
SAINT with the state Of trade, and who
keep their finger on the pulse of the
money market In the large cities a
period Of great speeulations in stocks, grain
any other commodity; SENDS the ex
changes up by the volume Of money
which exchanges hands. In New York
city the weekly bank statement issued
bv the clearing house association is
printed in the financial columns of the
newspapers and its relation to the state
Of trade deduced from its totals. This
statement gives the amount Of loans, of
specie and legal tenders on hand and the
amount of deposits and circulation. The
relations OF the banks to the United States
sub-Treasury and the movement of money
from one part OF the country to the other
are Indicated by 1T; also the amount of
available cash on hand and the condition
of the surplus reserve required to be kept
against deposits, whether it be increased
or decreased Every city Of Importance
has its clearing house association, and
once established il becomes in
dispensable in facilitating the
exchanges between the different banks.
The clearing house association Of the
bankers Of Wilmington was organized on
October l, 1887. John II. Dandy. cashier
of the Union National Bank and Otho
Nowland, cashier Of the National Bank of
Wilmington, were instrumental in the
organization Of the association, visiting
the clearing houses in other cities for the
purpose of investigating the methods
there carried on, A meeting Of the bank
presidents and cashiers was called. and
rules and regulations based ON the
best of those in force in other cities
adopted. Washington Jones, president
ofsthe National Bank Of Wilmington and
Brandywine. was elected president. and
1tAAAA AAt R5ApJf HcNlDthA1 0Ahb ANbN-
land was elected manager, and has served
one year. The six banks Of deposit and
discount in the city became members of
the associations, and are represented at the
meetings Of the association by the presi
dent or cashier
The banks that are members are the
National Bank of Delaware. National
Bank Of Wilmington and Brsndywine.
Union National, First National, Central
National and Farmers There was some
opposition at first, but at the annual
meeting last Tuesday, the representatives
of each bank expressed themselves as
being perfectly satisfied with the opera
tions of the Clearing House and desiied
thatitshould bea permanent organization
None wish to go back TO the method of
exchange and settlement in vogue before
the Clearing House was established
At the annual meeting last Tuesday,
Washington Jones was reelected presi-
dent, Otho Nowland was elected secretary,
aud John H. Dandy manager for one year
The total exchanges for the past year
were $50, ,005, 10S The average amount
OF exchanges are gradually increasing
The clearings on September 20, the last
day Of the year, were over 5000 600, being
the largest since the opening Of the clear
ing house
The preliminary object Of the Whining.
ton clearing house is to facilitate and
business between the banks Of
the city in making the exchange of the
checks on each bank, received on deposit
by each OF the others Previous to the
Of the clearing house, each
bank kept an account with each OF the
others, and the checks each bank re-
ceived on deposit were presented for pay
ment the morning after they had been !
deposited by the runner This made
trip to each bank by runner from each
Of the others, or % trips in all each morn
ing Now each bank sends n clerk to
the clearing house, where the exchanges
are made If banks balance is debit,
another trip is made tothe clearing house
to pay it The exchanges are made at
once of the banks designated by the as
ISOLATION under the supervision of the
manager. During the past year
they were made at the Wilmington and !
Brandywine Bank With the election of |
Mr.. Dandy as manager, a change is made |
to the Union Bank The change took !
place yesterday, and the Union Bank will |
be the clearing house for the next year
The method is as follows The checks re
ceived by each bank of the
city on each OF the others are put to-
gether into a large envelope on the
outside of which the amounts are listed
and footed up. At 1890 o'clock the next
morning these envelopes are taken to the
clearing house by the settling clerk, and
the exchange made Each clerk meets
there one from each of the other banks
each has an envelope of checks for each of
the others. and after the exchange is
made each returns to his bank with five
envelopes Of checks on his own
bank which came from the
Others. The amounts brought"
to the Clearing House are listed on a slip
by each clerk, the amount taken away
being likewise listed as amounts re-
ceived. The eolumnsN are footed and
balance struck which may be "Dr or
"Cr "Dr II the bank owes the Clear
ing House Scr if the Clearing House
owes it. The manager lists the total
amount brought by cash clerk in one col
umn Of the Clearing House sheet and the
amount received BY each in another column
of the same The balances are listed
"Drs III one column and "Crs in
another Then on footing the same If
the exchanges have been correctly made
the amounts brought and received viii
balance and the debit and credit columns
Of balances viii also balance, both TO
cent. Should there be mistake in the
Clearing House sheet there is an error on
the part Of one of the clerks in transfer
ing the amounts TO their slips