The Portland daily press., 1893-07-21

SSssaS..
GEORGE @. WILLIAMS, PRESIDENT NEW
YORK CLEARING HOUSE.
bers, all but 10 of which are national
banks, one member being the assistant
treasurer Of the United States and IS
state banks. Before the clearing house
was organized the different banking in
situations of New York found it neces-
sasy to employ small army of messen-
gers, who used to go rushing about from
bank to bank with checks, drafts and
cash every morning for the purpose of
making settlements between their re-
spective institutions of the previous days
business. Under this plan this settle
ment naturally occupied some hours
every morning and cost the banks a great
deal of money. Under the present plan
the work is performed in less than half
an hour each day and at a much smaller
expense to the banks.
The home of the Clearing House asso-
citation is in a brownstone building at
the corner of Nassau and Pine streets.
At about half past in the morning the
clerks from the banks included in the
organization begin to pass through the
swinging doors of the entrance on Pine
street and up thestairs to the main room
of the association. Each bank sends two
clerks, delivery clerk and a settling or
receiving clerk, SO that the normal num-
Der is 1870, although there are times when
the larger banks send more than two
clerks each, and the number is some
times increased to 1870 or 100.
The delivery clerks bring the checks
and drafts which have been received by
their banks in the course of business dur
ing the previous day, while the settling
or receiving clerks receive these paper
tokens and compute the balances due
from or to their banks. This operation
is performed in an incredibly short space
of time. for each of the clerks is thor
oughly expert accountant. When it has
been accomplished, at the sound of
gong tapped by the manager the settling
clerks pass up to his desk slips showing
the state of each banks balance. Later
In the day the banks from which money
is due send the required cash amounts
to the clearing house, and the banks to
which 1t is due receive the same from
the clearing house. These settlements
are always made in currency and never
by check. There are days when the cash
transactions are very large; but, on the
other hand, it frequently happens that
the amount of cash actually passed is
less than $1,000, even though the days
business may have aggregated many
millions. 1t is said that on one occasion
where bank had on the previous day
done business Of about 100000 its
balance required the passage of only
about so cents in cash.
Although but GA of the New York
banks are members of this association,
1t Is essential to the life of any institu-
ton doing regular banking business
here to be able to make its daily settle
ments in some way through the clearing
house, and banks belonging thereto allow
others to clear through them. During
the present financial depression this priv
iIege has been cut off from two or three
Of the smaller banks and their suspen-
sion has shortly followed.
George Ct. Williams is the incumbent
president Of the association, and E. K.
Perkins is vice president. j, Edward
Simmons, somewhat of a politician, but
more of banker; Fl. G.. Cannon of the
international monetary conference and
ex-comptroller of the United States cur
rency. William g. Nash and F. B. Tap
pan are the clearing house committee.
This is the executive body of the organi-
cation. and the names of its members,
fairly well known to newspaper readers
throughout the land, stand for great
deal in financial circlesin New York and
every other large city.
William Sherer is the manager and
w. J. Gilpin assistant manager. Five
or six clerks are employed in making
the necessary computations. The work
Of the manager OF the clearing house IS
arduous, and his hours are long. 1T is
not often that he is able to leave his desk
before o'clock in the afternoon, and
sometimes he finds it necessary to re-
main for hours after that time. In the
nature of things he feels the financial
pulse OF the country more accurately ev-
cry day than any other man in the Unit
ed States. He told me this morning
that during the 80 years and months
OF the associations life, which closed on
July / Of the present year, its transac-
tieas aggregated 81 .060. 487 .143.0 15. 10.