The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-01-01

Tor the banks bat for our Immediate
country; by a united effort OF the banks
OF the city the battalons might have
joiped il one grand army aud met the
! assault boldly.
Itwas Intended that THIS articir sir0ald
give you the datea OF the organization oil
.he various banke, their capita, depos-
lite, respective annual businesG, anmea
of their leading atock holders. ths amount
| held by them, together with mach other
date that would be interesting This
feature, however, will keep for another
time.
The history OF the aggregated business
OF the banke ie shown by the busineas OF
our clearing home, which was organized
Septem Der 2, 1887, aud the FIRST dsy'e
clearing on the 18th OF tina: month.
The primary object Of clearing
house Is to expedite and moro sefely
make c settlement Of tha dsbits and
credits bstween banks OF city. FOR eff
fecting ct one place the daily exchanges
between the several bankO ar d receiving
and paying at tho came place the bal
ances resulting from such exchanges.
and for the transaction of auch other
business Rotating to the financial inter
cats OF the members as may from time to
time be deemed advisable.
The clearing houae can tie useful for a
great many other purposes than those
me ntioned.
A very large amount OF money pasaes
daily through the banks, aud it would be
matter OF great responsibility attended
with danger OF loss Of labor and time,
for each bank to present to every other
bank in the city the checks which are
deposited by business men during the
day; consequently there is great ecor-
omy in W hat is called clearing house
Each bank receives checka from its de-
positors and collections from abroad, On
svcry othsr bank in the city. These
checks and cash itema ere taken to the
clearing house, where the Representa-.
tivcs from each bank in the city, which
is mem Der OF the Clearing House as
ISOLATION, meet at O'Clock each day and
exchange credito. A calculation is then
made as to which are the debit and
credit banire. and how much tho debi.
within an hour afterwards, which will
equal the amount that tho credit banks
are to carry away.
Since the organization OF the clearing
house the amount of clearings to Octo.
Der 81. 1894 was s30l Az, O36. 49, and the
amount OF cash balances paid wan
$52, l54. 229 81.
This would be large amount OF cash
to handle, and without the clearing
house the former amount would have
been carried from one bank TO the other
and exchanged across the counter, while
the latter amount represents the cash
paid by reason of the clearance house
arrangement; but even the risk of
carrying tho 62.GU0, 0G0 has been mini.
missed by each bank placing actual gold
coin or government securitisH in vault
called the clearing house sefe, sn6 GER
tificates issued to each bank 90 deposit
ing their gold. These certificates are
payable at the counter OF the iesuing
bank and are accepted by every other
bank in the city in lieu OF gold. the ar
rangement being that in case of bank
failing to redeem its certificates the
clearing house committee, which con-
sista of three Nom berH. shall open the
safe and pay to the holder OF such un-
redeemed certilicatea in gold cein or
government securities, such amounts az
may be necessary to redeem them. The
amount Of money deposited in the clears
ing house safe by each bank is approx
mately proportional to the business
it transacss. The great uee OF theae Ger.
tificateB in making the exchanges has
been fully demonstrated.