New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-16
TO ISSUE CERTIFICATES.
ACTION OF THE ASSOCIATED BANKS.
THE LOAN COMMITTEE NEUTRALITY-SUSPICIOUS.
sTrrr corxc To THE INTERIOR

"cd'loH yesterday In1r, III SpN' VI tn' ch"I'o
at secrecy of the Clearing House Committee of
the Clearing House Association, the public mind
had been prepared by The Tribunc's information
for the holding Of the meeting Of tn" aSsO O,iation
10 consider the question Of issuing Clearing
House loan certificates. A meeting of the asso-
citation under the veil Of mystery would. IN the
present nervous condition OF mems minds, have
doubtless started numerous sensational ruinors
and these might have been utilized by the bear
faction 70 the serious drtrimcnt OF values Inc
meeting Of the association was one OF tn" largest
in it, history -lesS than half a dozen banks faii-
ing TO send representatives.. George q. Wlllinms,
chairman of the association. briefly stated the
purpose for which the meeting had bc"n called.
F.. H. Perkins. IT, President of the Importers
and Traders National Bank, and chairman OF tho
Clearing House COMMITTEES, then presented reso-
luton cmho'lying the resule of the deliberations
OF the committee on Tuesday. Mr. Perkins
pointed on. the gravity OF the situ ton result
ing from the monetary strain, and declared tha'
the committee unanimously considered that II
would he benefit TO the banks and to the
country 70 authorize thr issue OF loan certificates
The bankers present voted unanimously in favor
of the resolution, which aS follows:
Resolved That committee Of FIVE be appointed by the
chair with the president receive from banks members
of association hns receivable and other securities 10
lc apluNr1 by said committee. who shall br authorlf'i
70 ,.uc therefor such lcpO>iting banks loan GER
tinclics hcarinr at per cent per annum ana
such loan cert noae. shall be- In oil - per cent
Of the market value o III" securities or b'lS r'ei'a"'
20 deposited aud such certificate" shall be- rc'''u anu
raid in settlement o the Clearing House ana
all the rules ana regulations heretofore adopted IN inc
issue OF such certificates shall be In force OH e p'
issue.
The following Loan Committee was appoihteu
Presidents Frederick ID. Iappan, OF the "aiia'ih
National pank: T.. H. Perkins, Jr., oi the IhlPof-
ter, and Traders: J. Edward Simmons o' 'h"
Fourth National: Henry ". Cannon, OF III" ohiS'
National: William l. Nash, of the Corn fAchaiHe
Bank, and George g. Williams, OF the 'h"mlcal N'-
tiona Bank The committee VIII meet to-iN l"
receive applications for the issue OF the pr P''
certificates and also 10 consider IN" qu"shoh o'
susponding the publication ol the de'"ilt' """H
statement II j. probable that Tomorrow s'a''
mont Will hn issued usual, but future s'"''
mcu,s - is customary when the certificates are
rcsor,cd 10. will simply furnish IN" aggr'g''"
i,.ms of all thc banks This is done to shi'd
from criticism or attack any institution mat may
be compelled 70 apply for certificates.
Hlnnl,s were prepared yesterday for Distribution
70 he used by banks desiring 70 apply ior c'.-
tificatcs All collateral put mp to Sccnr" c'r'l"-
cafes issued il carefully passed upon by III" Lon"
Commit ln. BANK taxing iH'h '"' "'''' '''
,he upproval Of the collateral, furnish document
70 ,ho Clearing House formally plodgns IN" se-
curi,ies and the securities will be- plac'l IN
so,, d,,,.i, voul, the committee seeing that bills
rcc.iyab,, are collected. when thcy mature, ana
,b,, interes, or dividends on stocks or bonds Il
dulv collected Each transaction il simply loan
,,. ,hc ,sauciation az unit to the bank desiring
Ia take ont certificates. The ceriiicat's are
counted among tho bank loans and are IN no way
us.d as reserve serving simply ~ cash Tor 'h'
c;,lencnt Of balances between members oil IN"
Clearing House.
Tho official frdrcS cf the ls~uc Of loan c'rtii-
CITES in the past are follows From September
o. 1913. 10 J.nuaIy II, 1874. certificates re-
msincd outsian ling. the maximum issu" having
been S26.GGj.O .Od1. In 1851 the maximum ls'n"
was sa4,Olj, ,OOO and their life ran from May
- 10 June t.. excepting those iseucd TO the
Nrt,opoIitin National Bank. which We're long III
niIatior In 1880 there w"r" Si6,6i3,ooo
issued. and they were outstanding from No.
vcmbcr -. /; 90, 70 February :, 1891
The action of III" Associated Banks Wa grnrraiIv
con nondcd Yesterday although regret was en-
pressed that the situation was sufficiently serious
20 warrant such step. But aN long as thcre
WIS danger Of emergency that would rr1nlr"
IN. issuo Of ccrtifcatcs the bank, were com
mcnded for their prompt action hfor any serious
disast,r had occurred II was generally believed
that the course of the banks would 20 FAR toward
hclrinc TO restore confidence. although no one
cxpcc,s thc disirust Of conditions to subSdc i'm
mediatnly Tres!cnt Williams. Of the Chemical
National Bank. said The action OF III" aSso-
citation vas taken largely with a view to giving
tone 10 the whole country. II is likely to h"
followed by other centres. The citad"l-N"w-
york-is all right. hut want 10 strengthen the
ontpoets I think the situation i decidedly i'm
rovcd b. orr acion.'
! Edward Smpons, president of tho Fourth
National. said that hc considered the steps taken
Lv the banks 70 I've Of material benefit TO the
fnarcial outlook /" II is bic piece Of blue sky
he remarked.
Henry w Cannon, president Of the Chase Ma
tional Bank, said: "The course taken by the
Clearing House Committee and the association in
appointing n committee for the Issuance Of loan
certificates believe 10 bc wisc and for the best
interests of this community and the country. II
il n precautionary measure, and | believe it will
assist in restoring confidence also believe that
il the principal cities throughout the country
would take n similar course il would be much
easier for the banks who members Of the
varions Clearing House associations throughout
the country to properly conduct their business.
ard that they can accomiiodate th'Ir several COM
nunities much easier than they could without
having an arrangement to bind themselves to-
cetbcr for this purpose. The disturbance to
credit has c1uscd general liqudntion, which
do not believe can hr settled by wtldrawals and
movements Of money from point TO point, but |
think cach community, large and small, should
rnIrrtake 10 linuidate. so far a. possible, its own
affairs and the privilege OF obtaining loan ccrt-
Gates. in Of necessity would undoubtedly
rs sst in restoring confidence. II seems cle1r that
a lack Of confidence in onr currency system is at
thr bottom Of the present condition oi anairs
ond our currency laws must bc changed for the
better before we can expect complete restoration
Of confidence
Comments Of other bankers were OF the same
il is doubtful il the action Of the , banks VII
II wos intended for the benefit OF th" mercantile
community. hut may react on call money later
on by rcviving confidence. The current rates
NJ the Stocl, Exchange yesterday were l2al per
cent. with considerable business mp T. 90 per
cent, and exceptions at - per cent. Ih" bust