New-York tribune., 1899-03-25
THF CHARGE J-STIFED.
4 BANK OFFICERS VIEWS or THE NFw CLEAR
ING HOUSE RULE.
To the Editor of Tho Tribune.

To the Editor a. The Tribune
Sir. ! have read with great deal ~ interest and
curiosity he article IN this mornings issue "
your paper. relative to the collection of country
checks by New-York city banks 7 state I nave
read 8, with curiosity for the that II seems
very strange that paper with TIE standing that
Tho New-York Tribune has should allow an art -e
with such distortion from facts 10 appear IN rs
editorial column. Moreover. the gentleman who
has laboriousv constructed the sentences IN tho
article must know little. II anything. about bank
ing and surely nothing OF the methods employed
in recent years ny the largest mercantile houses
IN New-Ycrk
It IS stated I'm vour article that tho banks are
able 10 Joan their depos tors money in Wall Stroft.
N good rates of interest. j. the writer ~ tac
article referred 20 aware OF the fact % the small
very smal-pe.ccntage of an ordinary deposit
made up o. New-York City che, ,ks? Does he not
know that it has become tho custom OF late years
for merchants 20 take from out Of town buyers
checks upon their home banks. which are very
often upon points ~ 81 considerable distance from
Nen-York and tho collection OF which items is
not MADE on an a'erag" at an cirAer date tAan
week after they are deposited by the local mer-
chant Win bis bank in TINS city
Moreover. does he not know that only n very
small percentage Of tho amount Co., these country
checks remains on deposit with the N'W-Nork bank
until the time that fhe funds are actually in hand
hy the coll sctinT bank; IN fact are almost I'M
The writer OF this letter is bank officer. and
two facts have within tho Last TWO days been
only yesterday. in which large check OF several
thousand dollars vas deposited by a local nrm
with his bank upon Philadelphia. and the fuH
amount Of This money Was drawn against I'M.
mediatey. The funds 10 pay for that check VIII
not be received back from Philadelphia FOR ABOUT
n week
Another instance has been told 10y n bank CASH
ier ~ Michigan. IN conversation With the writer.
that he has always had considerable trouble with
some OF mis- largest mercantile customers OWING
10 the fact that they have given their checks IN
payment Of goods 20 New-York houses. when they
have not really had the amount m their bank 10
meet these checks; relying upon the fact that lt
would take three four days before the checks
they had issued against their local bank would
reach their city. and that even then they con-
sidered t only proper for the cashier of the bank
call them uu the telephone and inform them
that the checks were IN and should be- covered.
Still another reason IS that many OF m, banks IN
other large cities have accounts IN Phadepnia Bos-
ton and Baltimore. and have recently insisted on
drawing their own checks against their accounts IN
these cities. and that the New-York banks take
them as cash. and pay them interest upon ine
mouey-the same money upon which they ar
drawing interest az the same time IN the othor
cities upon which the drafts are drawn
These are only RI few Of tho trials 70 which the
acceptance Of country checks has subjected the
NcW-YOrk banks. Might ] ask that this article ne
given much prominence as the article critics.
uc tho Ncw-York banks. IN Justice 10 these banks
and u accordance with the facts As they are
\ NEW-YO DIRK BANK CASHIER.
To~Lr