The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-08-17
UNIFORM CLEARINGs.
Practice by Which Some Cities Mis-
lead the Public.
New York Financiar

The prosperity which this country is en-
joying has swelled bank clearings to an I'M
precedented figure Different cities. rivals
ing broadcast the advances which they have
made over corresponding periods in form
years, and often over other cities which
heretofore may have outranked them in the
total volume of business transacted.
But the word 'clearings" as applied to the
supposed amount of business transacted
through banks in given territory is often
misleading. Nearly every city has it's own
method of figuring returns, and few are
chronic Offenders in the matter of swelling
reports to an unwarranted figure The re-
suit is that the value of the combined totals
is seriously impaired. The discrepancy is
caused generally by the fact that centers
of commerce wishing to impress upon the
world their growing Importance do not hes
itate to class as ,''clearings'' all checks sent
to the clearing house, and also those re-
ceived. Naturally a computation based on
this practice gives a double total, and the
city is credited with handling twice the
matelv lay claim. Several cities in Texas
have been engaged of late in a spirited con-
troversy over this point. and one important
town-Dallas. we beeve-refused to make
further returns until rival cities adopted a
uniform plan which would make compar-
iSonS just. Ohio cities are usually quarrel
ing over the same point, and other States
furnish abundant testimony to the inaccu-
racy of clearings as given in the public
press
1t is not the province of this paper to
say what rules should be followed in COM
putting totals but we believe that our read
ers will agree that without uniformity, the
figures which are given out and on which
the business of the country is estimated
can be Of little value. either for comparison
or as a direct statement of the condition of
the trade
1t has been urged that there are almost
insurmountable objections against the
adoption of a uniform method between diff
ferent cities. Reform is desirable however
and until it has been effected the tabula-
tions will never have the value that, other
WISE they might possess. We believe this
to be a matter that ought to be discussed by
bankers associations. Certainly the colIn-
try has grown too large to continue a prac-
tice that must be designated as misleading
The ma iority of the clearing house banks Of
the different cities are connected with the
American Bankers Association. and the latf
ter might with profit give the subject space
fer discussion on its coming programme. To
have the figures continued at present
with certain sections reporting actual clear
both sides, is little less than travesty on
statistics
To obtain the views Of the managers
themselves on this point The Financier re-
Gently wrote to the various associations ard
the answers, as published on another page.
bear out the contention that uniformity is
desirable. above everything else 1t must
not be understood that a majority of the
cities indulge in the padding practice
Fortunately. they vet in a small
minority. but business rivalry is such that
towns and cities will be led sooner or later
from the straight and narrow path by the
actions of places which compete with them
for trade.