The Opelousas courier., 1893-04-29
MILLIONS CHANGE HANDS.
HUGE TRANSACTIONS OF THE
NEW YORK CLEARING HOUSE.

VeTIsITORs to Washington going
" to the United States Treasury
Z hold thousands of dollars, ever
hundreds of thousands of dol
lars, in their hands and then go home
and talk about it all the rest of their
Lives. There is a glamour e%nveloping
large sums Of money.
Millions are always suggestive Of
"Arabian Nights" and are referred to
vaguely and r%everently, somewhat as
people talk of the future state.
Every day thousands of busy people
hurry down Nassau street and past Pine.
They are unaware that every morning, in
a room owe the Chase National Bank.
between $l20, 00O, 900 and $3.50, o00,-
900 changes hands in ten minutes. The
Chase National Bank is in the northwest
corner of Nassau and Pine streets, and,
over the bank, the rest OF the building
Is occupied by the Clearing House of the
Associated Banks of New York.
Every workday morning representa-.
tives of over sixty banks Of the city of
New York assemble in the Clearing
House with checks to be exchanged.
Precisely at ten o'clock the representa-.
tives exchange checks, receiving vouch-
ers and receipts in return. This takes
exactly ten minutes. The results of the
interchange are then reported by each
financial en1lssary to William shearer,
Manager of the Clearing House, and his
assistant, William !. Gilpin. These two
gentlemen mount into a gallery at the
end Of the room and balance the results
upon a huge proof sheet, On the floor
below each bank representative has a
high desk, belonging to his bank. After
making their returns, they loll around
for half an hour until the result of the
days clearances are read by Mr.. Gilpin
from the gallery. These are copied
down y the men ON the floor below
upon similar sheets and taken to their
banks, where they furnish accurate daily
statements of the financial standing and
daily business of kindred houses.
The average sun which changes hands
daily is about $135, coo, 000, but upon
Thursday last the enormous sum OF
$3.50, 900, 900 was involved.
Upon receiving their credit or debit
papers the men return to their institu-
lions. If one bank sent down $500, 900
worth of checks and received back only
5000, 900 in their own checks, they are
entitled to the $500, 900 difference; and,
on the other hand, if they pay over
i 5000, 900 worth of other banks checks,
they are required to make it good. This
is done at 1:3o p. m. each day. Their
the clerks or messengers repair to the
Clearing House and pay in what ii
charged against them, and vice.versa,
This difference is paid in $1,000, $4,000,
$4,000 aud $40, 600 gold or silver GER
tiicate notes and payment is made back
by the Institution in Clearing House
certificates, which are ,valueless excepi
when signed by the Clearing House.
As the interchange of so much money
is Of considerable importance, the clerks
or bank messengers, who carry hundred
of thousands of dollars to or from Mas.
sau and Pine streets, never travel alone
and generally come and 60 in cabs. TIL
bank's.detective, and sometimes two o
them, follow the man with the money
All 90 heavily armed, and there is NJ
instance upon record where one of thes
messengers has been robbed.
By the middle of the afternoon, ate
the debts and credits have been mad
good, the Clearing House has not on
cent in it's Golfers. It is all received an
dispensed in the settling room.
OF a necessity, the accounts upon tn
proof sheets have to balance. If Their
are any mistakes they are easily correcte
by referring to the system of mutus
vouchers and receipts, which each bank
representative takes and receives fro1
every other bank. Aside from thi
there is a system of fines, averaging .
for each error made. This acts as
stimulus to accuracy and prevents errors
which in reality are rare.
Through the medium OF the Clearin
House each Individual bank is save
thousands of dollars and valuable tim
1t would keep five or six bank CLERK
busy from morning until night to Wis
other banks, return checks. exchane
the same and collect or pay the difel
J ences, beside retarding the business an
i. bookkeeping.
The Clearing House of the Associate
Banks of New York has been IN exis
: n C since 1853. During that time
D has been able to avert serious fnanci
panics by the intimate knowledge whic
q it furnished to each bank concerning Il
? exact condition OF the others. The a
fairs Of the institution are controlled I
an Executive Committee of five, a
i, pointed at the annual meetings.
. Each bank is based according to Il
amount of business which it transac
= through the medium. Banks outside
!, the city are not admitted, but they ca
: clear through the city banks by keepinI
permanently, a large deposit IN Il
banks which they select, and sendil
their checks to them as agents.
= In the Clearing House, in the upp'
. room, everything runs like clockworl
y Each man knows his place, and the 81
!, tenn has been so simpllfed as to be abs
= lutely accurate. It runs in such smoo
. . grooves, so well oiled, that the instit'
, ton can clear or exchange with the sar
u facility 5000, 600, 900 or 800, 900 j
q side Of the prescribed ten minutes.
There can be no mistakes involving
mixture of the banks. Each conce
has a number of its own, which is nev