The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1893-09-01
THE CLEARING HOUSE CERTIFICATES
CIRCULATE FREELY.
The Banks Come 10 Me Relief Of the Commu-
nifty CraGfytng Reception Girent he Csrtif-
cafes What People Think A6ou, Them.

nifty GraGfyiny Reception Gjrent he Csrti6- |
cafes What People Think 446oU; Tlem
The tanks Of this city recently formed
Clearing House Association for the purpose |
OF meeting the prevalent fuaucisl striu gency |
ana giving the people u safe and sound |
medium of exchange. This action was alb |
solutely necessary for the cotton crop is |
about to come in, aud there had to be money |
TO move it,
> For the purpose Of meeting the emergency,
the Clearing House Association was formed.
and.somc days ago the following trustees were
A. Crawf ford and DR.. w. j. Murray.
The following is the plan Of operation
whereby the certificates are issued
Any bank wishing to take out certificates
is required 10 deposit with the said trustees
such securities as shall have been approved
by the association, and the trustees there
upon will issue the said bauk certificates in
such denominations and in such amounts as
may be authorized by the association, not
exceeding Cog per cent Of the face value of
such approved securities the said bank
executing and delivering 10 the trustees its
notes f,r the amounts of The certificates.
payable on the first day of January next,
with interest ut the rate of 6 per cent. per
annum. The certificates are payable on or
before January lst, 1894, and payment of
the same is guaranteed by all the hanks Of
the city composing the Clearance Associa-
tion.
At meeting of the association last night
at the Carolina National Bank it was agreed
that each bank would at ouce file with the
trustees the necessary securities SO as to
take out present issue amounting 10 20 per
cent. Of their capital stock.
The certificates are signed 10y the trustees
and countersigued by The secretary. They
are of the denominations of So, $40, S2O
and $50.
The association gave statement to the
public last night in which they gave n full
explanation of the reasons for issuing the
certificates and shows that the certificates
are as good as gold anil there should not
nor will there likely be, any trouble about
them passing. In the statement given to
the public last night the officers Of the asso-
ciationsay:
Ordinarily the money which is used for
the purchase of C tton is sent from New
York to the Southern hanks, aud heretofore
the banks have never experienced any diff
:. so great has been the scarcity OF chrreRtty'
for several months past that notice has al
ready been serveu uTou rnr southern bnnks
by their New York correspondents that it
will be impracticable for them to furnish the
means for moving the cotton crop. In this
emergency the Southern banks have seen
the necessity of supplying some other
medium of exchange with which this staple
can be harvested, purchased aud sent for
ward. A modification of the New York
clearing house system has been adopted
whereby certificates of small denominat ions
are issued, serviceable not only for settling
balances between banks. but its sphere has
been enlarged so that they can be used 10
supply this deficiency in moving the cotton
crop. Without some such means our cotton
would remain unharvestel in the fields, Oh
the 'rude be left in the hands Of few buy.
ers of sufficient means TO command the cur
rency from abroad. In either event it would
work ruin to the Southern country. With
the use cf the clearing house certificates
20 prepared rs to serve rs medium of ex'
change, both of these evils are avoided
uuring this period of money famine. Will
this means, the crop will be harvested ano
cefRy4l Sc griss @i
uioru me means of bridging the chasm unit
money realized thereon. In the meantime
they VIII respond to every want of the sew.
,. a. communities iI IN which they are used
.hey VIII DC received by banks on deposit by
nerchants In trade-until currency the pro.
ceeas or our cotton drafts, flows Southward
w, mheh these certificates will be redeemed
lhey VIII have accomplished their purpos,
anu, un'h some emergency may again call them
into active use"
THE CERTIFICATES TAKE.
me Clearing House certificates were is.
10 Iy 20 'he several banks of the city about
,L olock today and they began to circulate
m"' man got around not one to whom they
hao been offered had manifested the slight.
70. hestahcy In accepting them. MANY re-
se.'eu tnetn with smile and remarked as
.ney TOOK them, "would just as soon have
mem as any l know Of" MANY others
dropped in and bought one or five dollar
0'i'inIale Just for the novelty of the thing.
,u;ii mere Is 10 be any objection to them il
vii. come from some one who is not posted
n he hnahcial problem and regards gold
> as .he only money that will do TO hide in n
mole. There can be no objection TO them IN
tue part OF those who want them for the
purpose OF currency, for every bank in the
o"y is Pleuged 10 accept them Mt their face
"'ue ana Inc merchants are all anxious 10
t the them as money for their goods Colum-
CLhARiNG House CERTIFICATES IssUED-
~ Ni,it' August ga number of the
"r,Phi business men of this place met in
o'!ce OF the Savings Bank last Thursday
"e'ise some means of relief for the peo-
- iron the financial depression. 1t was
Heo'ueo 10 organize clearing house and
sue certificates in small sums to take the
J. ace OF currency. As a starter, 81 900 in
|or'ihcates, for sums ranging from twenty
I'o cents to one dollar, were printed yes err
"y Ihese certificates will be redeemed on
VI oeiore me hrst of next January, and it is
'APected that they will command the same
Pp'eciation as currency in this locality.
ana Will be used as far as possible for nav
ing deots. They will be especially con
venlent to farmers in harvesting their crops.
All Inc merchants 10 the place have oblipa-
ted themselves to accept them The plan is
10 deposit collateral upon which fifty per
ceat IN certificates is issued. Our people
think the plan an admirable one.
hock HILL, Too.-At meeting of our
o,tlzens on last Wednesday petition from