The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1893-09-01
THE CLEARING HOUSE CERTIFICATES
CIRCULARS FREELY.

THE CLEARING HOUSE CERTIFICATES
CIRCULATE FREELY.
The Banks Come 10 Me Relief of the Commu.
nsfy- Cyatfyfng Reception Girens he Certif-
eafes- What People Think AJovt Them.
The hanks Of this city recently formed
Clearing House Association for the purpose
OF meeting the prevalent financial striu pency
-. o...ss people safe and sound
medium Of exchange. This action was ab-
solutely necessary for the cotton crop is
about TO come In, aud there had TO be money
10 move IL.
For the purpose Of meeting the emergency
The Clearing House Association was formed.
snd some days ag0 tue following trustees Esrs
A. Crawford and DIR. w. j. Murray.
The following is the plan Of operation
whereby the certificates are issued:
Any bank wishing TO take out certificates
Is required % deposit with the said trustees
such securities as shall have been approved
by the association, and the trustees there
upon will issue the said bauk certificates in
such denominations and in such amounts as
may be authorized by the association: not
exceeding cog per cent. Of the face value Of
such approved securities the said bank
executing and delivering 10 the trustees its
notes f.r the amounts of The certificates,
payable on the first day of January next,
with interest at the rate Of per cent. per
annum. The certificates are payable on or
before January 1st, 1894, and payment Of
the same is guaranteed by all the banks OF
tho city composing the Clearance Associa-
tion.
AT meeting of the association last night
at the Carolina National Bank it was agreed
that sach bank would at once file with the
trustees the necessary securities so as to
take out present issue amounting TO 70 per
cent. Of their capital stock.
The certificates are signed by the trustees
and countcrsigucd by the secretary, They
ore Of the denominations Of So, $40, $40
and $50.
The association gave n statement TO the
public last night in which they gavo full
explanation Of the reasons for issuing the
certificates and shows that The certificates
are as good ns gold and there should not,
nor will there likely be, nny trouble about
them passing In the statement given tc
the public last night the officers Of the asso
ciationssy
Ordinarily the money which is used fol
the purchase of c ton is sent from New
York TO the Southern hanks, aud heretofor,
the banks have never experienced any diff
.so
for several months past that notice has nj
ready been served urou me southern bnnk
by their New York correspondents that
will be impracticable for them to furnish tn
means Tor moving the cotton crop. In thi
emergency the Southern banks have see
the necessity of supplying some othC
medium of exchange with which this stupl
can be harvested, purchased aud sent fol
ward. modification of the New Yor
clearing house system has been alCptc
whereby certificates Of small denomination
nrc issued, scrvccablc not only for scttliu
balances between banks but its sphere hi
been enlarged SO that they cun bc used
supply this deficiency in moving the co,to
crop. Without some such means our cottU
would remain unharvcscd in .hc fields,
tho 'rude bc left in the hands of few bu,
ers vi sufficient means TO command the Gu
rency from abroad. In either event it woul
work rum To the Southern country. Wi,
the use cf the clearing house certificate
TO prepared as to serve rs II medium of O.
change, both of these evils are avoid,
during this period Of money famine. vii
tins means, the crop will be harvested III
SsalhscHESS uSoAIlSSn cSrfsS,S cSSrAf4 ca SrlS
nhoru ihe means Of bridging the chasm un
the COTTON crop con DO sent forward ar
money realized thereon. In tho mcantin
they Will respond TO every want of the SC
era' communities in which they arc used
they VIII DC received by banks on deposit /
merchan's In trade-unlil currency, the pr
Goods of our cotton drafts, flows Souihwnr,
m mheh these certificates Will bc rcdccmc
Ihey will have accomplished their purpo
un''' some emergency may again call the
into active USE"
THE CERTIFICATES TAKE
lhe Clearing House certificates were i
sueu TO the several banks of the citv abo,
~, ~. CLOCK today and they began to circula
'heln NJ once Up to the time that the jon
~" man got around not one TO whom tn,
hau oeeh offered had manifested the slipb
70. hes,tahcy in accepting them. Many r.
eeNed thcm with smile and remarked ,
.ney look them. would Just rs soon ha,
mem as any | know Of" MANY o,b.
dropped in and bought one or five doll,
'or'incate just for the novelty of the thin
~. IL there is to be any objection to them
VIII come from some one who Is not most,
Oh inc hnancial problem and regards go,
= a' ,ne only money that will do to hide in
noie. There can be no objection to them G
'he part OF those who want them for Il
purpose of currency, for every bank in II
Guy Is pledged 10 accept them nj their f,
.uue ana The merchants are all anxious
nhe them as money for their goods. Colin