Pine Bluff daily graphic., 1894-05-04
Lag CLEARINGHOUSE.

,a ExpIanatton of lis Fonctlohs
 and ways Of Working.
 ,al readers in different parts or
 ,'ntrv @l have asked us to explain
 q .neinle ans of the clearinghouse.
 nrlY llT with the requests the more
 ,e because the explanations in Eeaaa 5clonedias can be understood
 ls sle5 by those only who have a com e'sas4s t',lo s' knowledge of banking. slletapi;I1 .;1 start with these facts: That
 s eIs' arery business and professional slpssS g the country keeps all the money '','s' a. ha does not need for casual per EalsH avnenses on deposit in a bank; sq'lsa navs nearly all his bills by '''as of checks; that consequently he Hsess sa;sss payments for the most part ia 1esss e9sss drawn by these who eve him; <, sasss sa does not, on receiving a check, e''''1.ss send to the bank to procure the E. but deposits it to his credit ia ''isT '';s sTs bank; ana tsat tAers ara @aany ,.s.Iss '.'s iH every large city.
 ''ssS ssssp wholesale merchant may re- ..;,s each day large number of asz 1 come on one bank, some on s,. er of course his own bank, in .s1';sb he deposits these checks, proper Z. z ;,.,lorsed. desires to collect the : .,,er npon them at once, because it's ssa5|s s', are made by lending atinterest |Ss ,oonev entrusted to it by depositors. 1' BiIt in a city where there are twenty <. f,,rtv or more banks, it would be 'sssst s. waste of time and labor, besides Rs;n6 I.s hazardous, for each one to send '-o,snd B messenger to each bank to 'slaact what is due. To avoid this the has been devised.
 6ts certain hour on every business |sv a messenger from each bank goes X stbe clearing" carrying all the 'heeks against any and every other s.n]. in the city taken during the pre- j<nk twentv-four hours. The checks Ire I,ade up into separate packages, ',,li Each has a statement of the aggre- 's4e amount due from the bank 6li the rest is a mere matter of addi- ;op End subtraction, which is done by he clearinghouse clerks. The First |ational bank has brought in checks gafrlst other banks to the amount of ftv thousand dollars; other banks ave brought in checks against the ssrst national to the amount of fifty ne Thousand dollars Then the First atzonal is debtor to the clearinghouse < ai1e sum of one thousand dollars. s{]ther banks are creditors. Of course ae debts and credits balance each ther to cent The debtor banks inst immediately pay, in money, EbateVer they each owe to the clear- 1gIaouse; the whole sum is at once ivided among the creditor banks ,Ana ae clearing" is over.
 Thus the claim by each bank against vely other bank in the city have been djusted at very little expense of time nd labor, and the use of small monnt of actual money. The checks nd drafts settled are called 'sex- hanges, is the balance.
 III HOotl y YCei . OilG E-AGlttif8GH Stb tltS ew York clearinghouse reach nearly ,rty thousand million dollars year, about one hundred and twenty-five ilions on every bank day. These sst accounts are settled by the shift Ig about, from day t8 day, of not ore than ten million dollars.
 This shows what an immense saving the use of money the clearinghouse alSes The principle is applied to slaer things beside banking At New ork and also at Boston the brokers M a stock clearinghouse. Gertif- ties of stocks take the place of cheeks. he broker who has bought five thou nd shares and sold four thousand of Northwest receives one thousand lares from the clearinghouse, and aTs the money balance due Ca all his 
 nnt although the clearinghouse prin- De is cs gable of wide application, it
 ehiefy employed in the bankers eariaghoHse of this country ts tlss sn bes sf sbsnt sixty ia sae ehief tles from Maine to Washings0va. .~.- outh's Companion.