San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1890-05-17
THE CLEARING HOUSE.
An Insritutinn without Which New York's
Banks Could Not Do Business.

An Insritutinn without Which New York's
Banks Could Not Do Business.
A concern which has a most important
function among New York banks, and with
out which it would be impossible for them to
transact the business which has reached such
volume III the last few years, is the clearing
house.
The word explains itself 1t is a place
where banks clear, that is, where bank ''ex-
changes the checks paid by 1t belonging to
other banks for its own checks paid by them.
Naturally, after this has been done, this bank
remains i'll the debt of the other banks for
the difference in the amount of the exchanges,
or vice versa, The clearing house is simply
a very great Convenience. The banks all
meet there and transact business in one hour
which, if they had to Send messengers to
each other TO do, would take them all day,
if indeed they could do it at all. This plan
was ali right years ago when the number OF
banks was small and the business light, but
in the present state of affairs it would be
practically impossible.
The clearing house is supported by sub
Scriptiom, each bank paying 50 much for the
privilege of its Use Quite a revenue is also
derived from fines imposed upon banks for
tardiness, making mistakes, etc. Some banks
in the city DO not clear directly, but through
other banks This is especially the case with
Brooklyn and Jersey City banks.
About ScvcHty-tve banks clear directly
through the clearing house. Each bank has
a desk of j. own, and is represented by two
and sometimes three clerks; one to settle,
one to deliver, and the third, when there is a
third, to sign the sheets. Usually the settling
clerk does this, except in the cases of very
large banks. The delivery clerk Of each bank
brings the checks of the other banks to the
clearing house each banks checks in sep
arate envelope, with slip pinned to it, on
which are written the various amounts to-
gethcr with the total These totals are then
all set down on two sheets of paper, one Of
which the delivery clerk takes, while the
other goes to the settling clerk
All banks aye obliged to be at the clearing
house and in their places at 10 a. NJ, under
penalty of a fine. At 10 sharp gong rings,
and the delivery clerks start on their rounds
delivering envelopes to the settling clerks of
the respective banks, who, in turn, take down
the amount and sign their names opposite the
amount with which their bank is charged
This operation generally consumes about eight
minutes The delivery clerk work is now
finished he gathers up the envelopes left at
his desk 10y the other banks and departs on
his way rejoicing. Not so with the settling
clerk, however.
When the exchanges have all been made
he adds up the amounts charged to him by
the other banks and makes out slip with
the amount Of the exchanges paid out, the
amount received, and the difference between
the two. This slip has to be made up and
handed in to the clerk of the clearing house
by 1915, or another fine is imposed, and if any
mistake is made endless fines follow When
all the slips are handed in, a balance is struck
by the accountants employed by the clearing
house. If there is a difference of a cent
everybody is obliged to remain until the error
is found When the proof is made the fact
is announced from the gallery, where Man
ager Camp and his assistants preside; the
debts and credits of the various banks are
read, and the mornings work is over The
work is so quickly done and so perfectly sys-
tematized that rule II Is sees the room
deserted.
The clerks of some banks are fined almost
every day, while others go for a year with
out fine. The chief things necessary for a
settling clerk to possess are a clear head and
quick hand. II a settling clerk goes for six
months without receiving a fine his name is
entered on book, and should lie ever be out
of position Manager Camp will testify to
his accuracy.
The banks assemble in the clearing house
again in the afternoon for the purpose of re-
ceiving their credit or paying their debit, as
the case may be. Sometimes it is but few
dollars and sometimes Tie amount runs up
into the millions.
The oldest settling clerk among the banks
is the man who settles for the Pacific bank.
lie is nearly - years old, but rarely misses
a day, and p rfoIms his work with an ac-
curacy and speed which puts many Of his
younger contemU0r@r,a, to shame - New
Work SIM