New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-15
BANKS TO MEET THE ISSUE.
PROPOSING CLEARING HOUSE CERTIFICATES.
THE ASSOCIATED INSTITUTIONS TO BE ASKED
FOR POWER OF RELIEF-MONEY STILL
FLOWING OUT, But PRECAUTIONARY
MEASURES PROBABLE.


An important step will probably be taken for
the relief OF tie existing strain upon the monetary
resources Of the New-York City banks as re-
suit OF a meeting OF the Clearing House Commit
tee of the Clearing House Association. 1t is the
authorization Of the issue Of certificates which
shall be good delivery in the settlement OF
Clearing House balances between the associated
banks. This measure is never resorted to except
in times of money stringency but it is believed
that by prompt preparations to cope with pos
sbc emergency the present financial distrust may
be largely allayeC and the situation so improved
as 10 remove the danger OF the emergency arising
"Forewarncd is forcarmcd is the motto which
has inspired the advocates of the proposed action.
The Clearinghouse Committee spent more than
two hours yesterday in discussion OF ilhahcil
conditions and the proper policy TO pursue a'
this ilncture Of affairs. There we're present al
the meeting George G. Williams, president OF the
Chemical National Bank and chairman OF the
Clearing House ASSOCIATION: Edward II. Perkins,
r, president Of the Importers and Traders
National Bank and Chairman Of tie Clearing
House Committee, and J. Edward Simmons
nresident OF the Fourth National Bank Henry
W. Cannon, president Of the Chase National
Bank; Frederick d. TaDpen, president OF inc
(;olatin National Bank. and William A. Nasl
president of the Corn Exchange Bank, who COM
picte the membership Of the committee "heh
the meeting adjourned it was found that tho'e
present had been pledged TO secrecy as to the
action taken and no member of the committee
would discuss the subject, although several OF
them were visited in the evening.
TO ASK FOR AUTHORITY.
II is understootk however, that 1t was ne-
cided 10 call meeting OF the Clearing House
Association for this morning, dt which the COM
mittce will lay before 1t a request for power 10
issue Clearing House certificates, should an occa-
sion arise where the situation might BE- dccned
10 warrant the cxcrcis, Of the authority. Action
by the Association Is nccessary to the egal'y vi
the adoption OF this plan OF relief, but th' r'""h-
,ncndltiops of the committee seldom Iall OF ap-
prova Al full conference OF the associated bahNs
II is understood that the committee Is unanimous
in It's opinion OF the wisdom of granting authority
for the use Of these means for expanding credi''
although il is not believed that any immediate
necessity exists for snch action lhe Clearing
House Corjniftsc however, feels that II should
ie nlaccl in a position where il could meet any
possihlc increase in the strain In the money
market with radical measures OF relief. IL Is
argued that action by the Association would In
dicatc 10 the financial and commercial community
the country over the determination Of all ia"
Ncw-Nork banks tn link hands ard stand together
20 fac a FOSSIL J. storm IL woul! he guar
arioc Il the safety OF every solvent bank, NJ
matter how hard pressed it might be for funds at
times II would lie an Assurance that fresh re-
lief j. available 10 The mci oantile community, and
this alonc. it il contcndcd. would have a rcas-
suring moral effect far outside the limits Of this
city.
Tho example OF the Ncw-York banks, II IL cX-
pcctct, would be followed by the Clearing House
associations Of tho other principal cities. and this
concerted action. il IS hoped you'd 60 far to
alIav anxiety and help restore the confidence
which j. now 50 sadly lacking in many dlrec-
,ions II j. possible that with any improve
mcnt in the general situation the Association
here may not be compelled to resort T. III" actual
issue Of certificates, although II may b" decide
that n wise policy dictates the taking ont OF
certificates bv some Of the strongest banks IT.
order to encourage confident resort % thii
means Of rcci on the par; of smaller institutions
hat may dread the continuanc" Of I'll" nor ctary
prc.syrc II is not known how far the ilr's OF
TN. Clearing lIouSc committee in rrSari To thr
handling Of the proposed certificates have '''l
matur.d, and perhaps the Association. at its
meeting to-day, will simply b. asked 10 grant
the power 10 the committee to issuc certificates at
its discretion.
ASSETS TO REPRESENT CASH.