Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-08-17
FINAMoiAL RELIEE.

mington and Brandywine SbO,OOO--
These Bonds Will be security for Notes
to be Issued by tho Banks to the Tx
tent of 90 Per Cent of the Bonds How
Clearing House Checks Will DO Used In
\ Local Business.
There is early prospectin Wilmington
Of relief from the existing currency
stringency. The National Bank Of VIII.
mington and Brandywine and the Union
Bank have already invested in govern
ment bonds, the former to the extent of
$4,000 and the latter 100000, with
which TO obtain currency. President
Henry G. Banning of the National Bank
of Delaware has the matter Of purchase
Of currency under contemplation, as has
also President Winchester Of the First
National.
President Capelle of the National
Bank Of Wilmington and Brandywine
ordered the currency week ago.
These wise provisions of the local
bankers will effect great deal in meet
ing the needs of more currency for bust
ness purposes.
CLEARING HOUSE CHECKS.
A most advantageous policy has been
adopted by the Wilmington banks
within the past few days, by which
still further easing up of the currency
among the community has been effected.
Each one of the mem beers of the Will
mington clearing house, which includes
all the banks of the city, has sent out the
following circular to its depositors:
Bank
WILMINGTON, Aug. 7ths 1903.
DEAR SIR: As depositor in this bank
fall
existing scarcity of currency, to mark
across the face Of your checks Payable
through the Clearing House only" except
in the case of necessity. Yours truly,
---, Cashier.
In doing this the Wilmington clear
ing house has followed the method
adopted by the New York clearing
house, August 9th, and by the Phila-
delphia clearing house, July 29th.
The value OF this movement works
| exactly in the direction of keeping or
retaining the currency here and Of pre-
venting the local banks from sudden
4 and large drafts on their currency re-
serves.
1t acts in the following way: Henry
Bedford, a contractor, for instance,
issues check for $4,000 on one OF the
4 lOSul bdllho W AOlI lO hGCDo aSCouhby
and writes or stamps across it payable
through the clearing house only" The
person to whom it is made payable de-
posits it in his bank wherever he does
business and draws checks against it us
he DESIRES lie does not take currency
The clearing house endorsement pre-.
vents that. The drawers checks also. in
turn, are made payable through the
clearing house. So at length regular
system of check payments in doing
business is established in the community
in the place of payments in currency,
Numbers of checks are already out and
are being received by the banks with
the clearing house endorsement.
1t is great relief on the strain o.
local currency payments. Large mum
bers of manufacturers and business
men have acceded to the banks request
The value of this method works equally
we'll for Wilmington checks that COM
here from outside States, for instance
through Adams Express, for collection
The latter company would deposit tn
check with its local bankers, and i
being clearing house draft woult
necessarily have to pass through tina
institution for collection. The loca
bankers give in exchange an order oil
New York or Philadelphia, as convent
ence to the payee may indicate,at whlcl
points the local banks maintain larg
balances to provide for such calls.
The matter of certified checks doe
not enter into the question. The volum
, of business done by Wilmington banker
is of such sound nature that certifica
J ton of checks is not necessary. N,
checks used for local business need il
The accounts kept in the Wilmingto
} banks are as rule so sound and goo
that for local business purposes the
are just as valuable uncertitied as cert
7 fed. Were they not they would b
, pretty soon dropped by the banks. L
} view of certain legal points, for instanc
| in the case of the death of the drawe
OF a check, its certification would be {
I value in enabling the holder to cash tn
check right away, but that is all there
: in that somewhat obscure point.
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