Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-06-03

Wilton Tor me N'NNt
now hp banks frtue accounts be-
taasn dla.rout citiaH o. iuet ns interest
iun na afo tho operations of The local
CLEARING house. but che operation De-
more complex The exchange % come
moiltlcH between dinornt localities on
Enc carthr Huriacs gives rise 90 tio ays-
tom known as exchange. by which che
credits aad debts. iu other words. the
debts arr caucoioi.
WHAT Is EXcHANGE7
Exchange o. tho name glycn 90 the
ryriom by which people or corporations
discharge and collect debts ln Other
elites
Those debts aw paid 10 the main BY
wilton omeru. called ln this country
drafts. and in Europe bills 81 exchange
Exchange d. often at par between cit.
ios ~ the same o1untry, especially In
the hrra commercial nations " Europe
nn1 100 the United States hut between
different tountrlfa aud also nt umof
between different cities Boa the same
county. eAohaugc o. frequently not ut
par that Do % b. DOT on clum terms.
Euhunge in nt par between two
plncts when dmft f0r say 500 OF
SLOW. Deposited In either place cancels
a debt III iloo ur 1900 Boz the other, in
this country ~ draft Cor given amount
VIII adWhyt uuuiiaie dlht or that
amount iu any part ~ tho country
Tor our money ~ 900 alike. but draft
may cost more 0r Ices. according 90 the
rate Of exchange between different
places The rate VI exchange between
two places win be- even when the people
% each place urn about equally Indebted
10 people IN thr other. Thus. n the tn-
tal debts owing BY any ritllruH ~
Omaha fn any citizens ~ salt Lake are
on a given day Ninn0. aud W ou the
same day various other people in Rait
Lake are Indebted 90 various other pcn-
pie In Omaha Co The rNtont ~ fia.Onn.
thnu exchange VIII nn strictly nt par
between those two plhrsai ana $1,000
Deposited ut bank in either city, plus
small charge Tor The draft. will lqui-
date q debt VI ti.eQ in he other
Whfn this D. The case. the exchange
u bought ni low rate That b..
person could purchase ~ draft NJ pfr-
hapH no. on The city iu which hr wishes
10 make payment hy paying perhaps
ton cents un each 800. u be- mad large
payment id'mnke. he coui9 rot II ni
lower rate. only n small regular charge
u made by thn bankers when even cx-
change ~ effected.
ENchnngc ou like conditions frequent
~ take. place in county liko ours
where the money ~ uniform and stable
throughout the whole country, ana
where trade u cunHinut
nEIow or ABOVE Pan
Hut when lhera ls much money IA
New York uf iu San Francisco. which
owned by pruplc or hanks IN salt
Lake CliN. then the banks here will aoli
New York 0f san rfanciag, exchange
Nefr cheap. They prefer 90 arl ok
rhnnar uu thuHH cities rather than shin
N The money they have lu those rltlea.
u might cost f1oO 0u every $1,000 tn
.hln ln ne money hy express hence thr
banks IN such cases are willing 90 Hrll
eNrhnnF un those cities alta low rate.
for ihtY always EUt u small ffo fuf
making the draft n 100000 should
D. ~ NeN York belonging 60 salt Lake
hlnk.. lhru 900 the merchants IN this
ylt thal hld debts 20 pay iu Sow York
inf TuniH huurht There could buy UN-
cinnW 0u Sew YORK nc very low rate.
a hurirti dollar drlft pufchuHod ln
hin rIW VIII always pay blll fur 500
IN any cliN in ihH country. hence. rnme
have held mat exchange d. always equal
nlNggn different parts uf ihc country.
hui the exchange h not pluni when
more D. chnrgti hy ihr bank Cor max
inF the dfuft 40 un0 time thnn another
II I buy duft on San Francisco for
hNr cents ON lhn hundred dollars, and
another Ola New York paying fifteen
cents Tor each hundred dollars trans.
mltted. j. o. clear that rxchnnra on New
YORK IL higher than in Ran
IuncIHco nnd that o. given mum.
Der of hundreds Of dulinra ln hand
WI not pay Tho same amount NJ In-
dehieinc'H in New York that b VIII
nay in Fan Francisco. IN large sums
I %
siderable while No la NOT unlikely that
banks are combines willing tl Hell cN-
chluFc on distant UlteH whore they
nay much money due them. without
mhk.ng any charge whatever Tor the
dmft1. liunkprH are retlcrnt about
THESE mnitera. bat thc practice In fnr-
elFn clilw can hu learned from books
and agroe. with this statement
a prominent banker iu thlH city was
consulted HH Co ihr "details nf thr onerl-
tons hy which debts orc cleared ana
cancelled between people Twins Loo dIf-
pie enough. uH to- following cluVeisn-
ualdi
HOW lr ~ DONE
we pay checks presented ~ our
bank which have been drawn ou banks
IN New Mexico, Arizona, Texas Old
Mexico ana Colorado. We send nll
these checks 40 the bank ln Denver
with which we deal. This bank rlvrs
as crodlt Ton ull these checks pH 10 thcy
were money. Then tho Denver hank
sends these checks Co tht various banks
on which they We're originally drawn.
IN me states named above, and re-
celve1 credit Cor thnm. CHECKS drawn
ON banks further west and prnsonted
10 ut ana paid, wc send to san Francis
co, whore We receive credit Tor them.
and the checks are Hgnt un 90 tho banks
on which They were drawn checks
nali hy ua drawn on banks In places
further ~ Wv send 90 Omaha. Htll
further east 90 Chlcngo, and the Allan
tic coast New England and foreign
hank checks We send 90 New York.
'Whut does n signify when you send
checks 90 those hankH2"
'li means that having paid these
checks Ourselves We, an onoct ask those
hanls 90 buy tho checks of ut which
they DO. aud them thoy collect the
money from banks ON which ths checks
are drawn, or, which is the tamc thing
they receive credit ON tha books of
those banks for the amount OF the
checks"
"Wcu. tho Denver and Chicago and
Omaha ana New York banks Vim have
90 send you the money from time tn
time to pay for all these checks which