The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-08-18
THE CLEARING HOUSE SCHEME.

What 1t Means md How 1t OpUratOs-A
Visit to the Pittsburgh Concern.
The organization Of u clearing house
being once more under consideration in
Wheeling, aud the community general
ly having taken a deep interest in the
project notwithstanding justwhat
clearing house is, what it docs and
what it may do, ran up to Pittsburgh
yesterday to look the matter over The
clearing house has been we'll called "one
OF the modern shorthand processes in
banking" This it is beyond question.
Yesterday the Pittsburgh clearing house
made exchanges aggregating Sl,3700O0
and did it in about ten minutes. Some.
times the sum is more than twice this
with equal dispatch OF business. 1t is
the system, vigorously enforced, that
does the business. Tho same system
enables Now York to clear from $780,
100000 to $l00.OO0,O0O day with equal
facility.
All the bank exchanges OF Pittsburgh
are made through tho clearing house,
yet Of tho fifty-eight banking institu.
tons in the city only nineteen are mem.
bers OF the clearing house association.
Tho explanation is that one clearing
house bank makes tho exchanges for
itself aud two or three othora. This in
effect brings oil the banking houses
into tho scheme and gives each share
OF the benefits. The assessment ON
members for expenses Is according to
the volume OF its business in tho clear
ing house. Tho items OF the expense
account are salary OF Il manager, rent OF
room and stationery.
The clearing house aystem is about
hundred years old in Europe, though
OF comparatively recent origin in this
country, which has copied tho Euro.
poan model so that tho method in New
York, Boston, Pittsburgh and elsewhere
Is substantially the same as that pur.
| sued in London. Before tho beginning
of the days business each membor Of
the clearing house makes up Its OK.
change list. This sheet contains the
namo Of ouch bank in tho association,
and each bank has its number set OPP.
poaito It's name. Thore is column
for tho amount sent in for each
bank and another for tho Gu.
try OF tho receipt. This printed
form is headed by the name OF
tho bank sending it in. Each bank
having sent in similar statement the
totals Of debit aud credit arc footed up
and tho difference Is what each bank
owes to all In tho association, or what
is coming to 1t from all combined. A
settlement shoot, moro in detail, Is Is.
sued by the clearing house showing tho
banks on the debtor side, how much
they owe aud how much they havo sent
in; also tho creditor banks, their total
credits and how much thcy haYo cent
in TO tho clearing house. After ycstOr.
days business Of 81 $40, 900 tho balances
were found to 10 SlUS,0OO. At timCs tho
proportion IL still smaller. II Is a
swapping Of iack.kniyes, II you please.
Instead OF carrying the iaCk.knivCs
around by tho CARLOAD only tho not re-.
suit passes. Nothing olsO IL disturbed.
Imagine an oliptlCal enclosure, nine.
| ICON mcu WlLuln stunning Nv uUbKbi
each representing q bank, to do tho
clerical work; as many outside doing
messenger service; each bank repro.
sonted by ono man within aud ono man
without tho enclosure. Az m elevated
dosk, In command, Is tho manNgOr, rGp'
rosenling tho clearing house nsIoClR'
ton. Tho work must begin promptly
| mud thpFn tnuaL In no miBLnkna.
Tho lists pass from clerk "a
clork, entries Rro made and
receipts given on tho lists. There
arn fines for being lato, for errors, for
everything that may interfere with
tho dispatch Of business, and these
rangO from ono dollar TO two dollars,
II u representative causes his bunk Ia
DO iltod suppose tho bank takes II Out
OF tho clerks hide. Few errors arC
mado, for tho banks Onttust this bust