The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1891-04-04

a NATIONAL CLEAHlNo HOUSE
It would help country Bauk. and Ease
Money IN Time Of Panic.
A national clearing house WIS consi L
cred bv the National Board Of Trade at
iti recent meeting in New Ohenna lhe
subject OF national clearing ouse has
naturally attracted much attention of
late years, IN view OF the great efficiency
Of the clearing houses at tile financill
o nters. Tie effect Of the local clearing
houses has le'n to enable larger
amount Of business to I've safe y done
upon a smaller proportion Of cash, and,
apart from this. the banks have been
brought closer together and made more
willing to extend mutual support to
each other Ia time Of need If all the
banks ( the country, by means of II
national organic ltion, coll be led to
p ace mure reliance on each other than
they do now, the dangers of financial
crises. ne fur as tley infect the banks.
would no doult be very much Olvlnted.
In this respect, however. the pr sent
status is n greHt improvement urOn Whnt
formerly existed
In IT, es of financial apprehension the
country bank, do not hasten to harass
their correspondents at the centers, as
they did in the pa t They are not as
likely 10 give way to unreasOning panic
AMI draw wildly for their balances for
no other reason than to ave them in
CASH in tleir own vaults Increasing
forbeara &c in this resp ct Ry b. truce
through I g IanicA of 1857. 1869. 1873
1874, and 1890. Jh habit Of Mss ciatin
AID consulting toge her in clearing
houses IN the Amt eau Btikrrs' Asso
cia IN aud in Stit,' sociations of bank.
ers. have led to this as well rs the re-.
peated proofs uf the strength Of the
suciaiel banks at tile money center,
given during the stress of llI' panics
mentioned As il is now. tile New YJrk
Clearing House Ass oiaion cufnes near
to being u national cl Z house A.
most every bank in tie country Of any
importance keeps I account in so =
in ,iitutiou IN Nsw York. aud H. checss
drawn ly tlem on their Ne 70 k cOi-
respondent form a very large share Ol
Il e cleHring1.
But, OH the other hand, an immens'
numler of ch,cts drawn on banks, n
only in 1t Ter Fl ancial centers. lut ais
in all rarts 0f the c, untry, however re-
mote or isolated, are deposited in the
New York banks These, Of course. can
not I've hamlled in tile clearing house
hut lave to he sent to The drawee bani,
for collection. Such # these last men.
toned checks as ure drawn on banks in
other important money centers. vii c
have amounts die them from banks ~
New York, are the ones that seem mos
fitted for caring pera,iuns. and it has
been suggested that step toward u
national clearing house might I've taken
| hy uniting, by some organization, the
banks in the cities of Bosl on Provi-
lehce, New York Philadelpl Ia, Albany.
Baltimore, and Washington.
AL these cities lie within few hour
| urney II each other, and it seem
| quite feasible tu uts allish ia New York
city earring huuse to effect * hanges
between these cities New York lies
cen rally, and doubtless the exc anges
could be ef cted every day with greal
reduction If the cash now used i'm max.
ng collections Letween these place
For centers more distant, such us Cli-
cago, S. Louis, Omaha. Kansas City.
Cincinnati, Cleveland New Orlenns
Pi tsburS, ChRrl, ston, Richmond. B If
fal0 9 me central point equidstant Le-
tween the e St aud W,st 1, ig t be se-
lected where the mutual collections
could I've sent and exchanged Whether
lesser centers or single banks could prof
tally he included IL such an arrange.
ment would lie "A question.
Whatever point in the country, how
ever central, were selected for the lncu-
tion of the machinery of clearing
house, of which all banks alike could
bec,me members, it would be. FOR sone.
on account of distance. disadvantag 'ous
to send checks To. Probably the most
feasible pla would lie to establish a
clearing house in New York, the natural
financial center, If which any banh
might hecon 9 u member. To this place
all checks might he sent either for ii.
lection or exchange, from all parts OF
he country. the ba ances when pa.
being deposited with he New York cor
espo dent of the bank EMIT ell 10 the
balance Tie ork of slc Il national
cheating house wuul oubtless lie i'm
mers'. lut it can lie easily cIrred ~
If the bu Ks agreed to it. aud its o. era
tions would he entirely independent ana
not me ferp in the least with those 4
local clearing houses
The uti iiy of ii, in all resrects, over
present method l. not SO Certain. an
therefore the greatest d fIicultv woull
BE- 10 get the tanks in all tie portan
centers to Rgree TO organize such u
plrp Sc Il fact there does not seem
as Sst TO be the Pressure T nectssl, ,
that, as rule, exi Is when RADICAL.
new methods are adol ted, however val.
nable they may Le in themselves. =