Evening journal., 1898-06-20
OWE OF DEIlAwAREs SONS

ONE OF DELAWARE's SONS
Benjamin B. Comegys, a FORMER Del
awarean, has just completed a term OF
fifty years service in a single bank.
lie is president OF the National Bank
OF Philadelphia.
Mr.. Comegys made very early start
in bank. He was born in the Farm
ers' Bank, Dover, of which his father
was president, ON May 8, 1919. He went
to Philadelphia when he was IS years
old, and for eleven years was con-
nected with dry goods houses. In May.
1S4S he entered the Philadelphia bank
as Il clerk, became its cashier in 1851.
and was elected its president in 1879.
which office he still holds.
There was. none Of the safeguards
thrown around the business in the old
days which modern bankers have
found essential. It was in the period
OF state banks, when the notes OF coun-
try banks were quoted at a discount
if they got far from home, and when
counterfeit note detectors were consult
ed ON nearly ever cash sale. Country
merchants used to take uncurrent notes
to Philadelphia to buy goods with or
would purchase such notes after their
arrival in the city, paying good money
for them. Merchants would take them
rather than lose a trade, and would
lose the discount. The countryman
calculated on making their expenses
by the transaction.
: The business of exchange was in its
infancy in this country, at least so far
as the interior towns were concerned.
Mercantile transactions were conducted
then much as they now are in the
South American republics. Goods were
sold on longtime notes to out-of-town
/ customers, but to Philadelphia custom
ers the term of credit was ninety days
to four months. 1t is hard to under
stand why the distinction was made
, unless the margin OF profit on the
Western customer was made large
enough to cover the interest and risk
The only reason given was that money
was made or lost rapidly in the West
and it paid to take the risk.
Daily settlements through a clearing
house had not been Thought Of fifty
years ago. The first clearing house
was established in New York, in 1858
and Mr.. Comegys says that the matter
was then considered in Philadelphia
8 but, as the weak banks were shown VI
n by that system, it met with no favoi
h there for several years. "A committed
d was appointed. however, and al
ARRANGEMENT was made and a pace Sc
cured for the cashiers to meet dali.
and make exchanges, but without set
Ie Elements. This system continued unit
q March %, S5S, when the Clearing
l. House Association was organized. Thi
,r would haye been done at an earle
date, he said, but for the opposition o
the president of the Bank Of Pennsyl
vania, which closed its doors finally Il
,e the early part of 1853. Since its OF
,e ganization the Clearing House has fiv
IN March %, 1858, when the Clearin
IN House certificates TO enable banks, /
n time Of panic. to accommodate tn
ne commercial community by discountin
ed paper to a larger amount than the
al cash reserve would warrant.
Mr. Comegys spoke OF several pan!'
which have occurred in the last ha
he century. The organization Of Cleal
,es ing House in New York and the pub
e cation Of the statement OF the cond
,r ton Of the banks very nearly produce
ek a panic at that time. In 1857 a pan
was stared by the failure OF the Oh
Life and Trust Company, OF New Yor
which spread all over the country. n
- breaking out OF the civil war, in 1St
- was followed by a panic, and the u
a. Cook failure, In 1873. created gre
disturbance in values, as did also {
assassination Of President Garfield,
ar 1881. In 1884 a panic, largely loc
ra- was caused by the failure OF importa
his banks in New York, and in 1890 cal
the Barings panic. The conditions
listing in 1893 and 1896 produced
severest strain on the banks for q
tive rency to which they have ever be
day subjected.
Of In recent years the responsibilit
devolying upon bank officials are mr