Omaha daily bee., 1899-03-12
Z
!, SOUTH OMAHA NEWS. J


Bradstreet's bank clearing statement for
the week ending March 10 and issued yes
terday showing a decrease in the Omaha
bank clearings Of 21.S per cent as compared
with the corresponding week of 1898. The
fact toat Omaha shows a decrease in the
clearing house instead Of the steady in
crease for some time past is due to the fact
that the South Omaha banks now exchange
checks at the close of business instead Of
clearing through the Omaha clearing house
as has been the custom heretofore.
On March l the local banks decided upon
this plan and the clearing house reports
show to some extent the amount OF bust
ness transacted here. The clearing house
statement issued on Saturday, March 4, for
the week ending on March showed an in
crease of "A per cent as against a much
larger increase the week before. Thus for
the ten days this local clearing system has
been in vogue, the Omaha clearings show a
decrease of 25.7 per cent.
The South Omaha banks have not estab-
lished a clearing house Of their own, but
they have mutually agreed to exchange
checks and only the checks for the bal
ances are sent through the Omaha clearing
house.
In speaking about this new method yes
ltIubN, nOuldS Is. MC1ueTSOD. GhSller OF
the Union Stock Yards National bank, sal: :
This change in our manner OF doing busi-
ness has been brought about by the action
of the Omaha banks which has forced the
South Omaha banks TO clear between them
selves. Now, instead of all of our enor-
nous business going through the clearing
house, we clear on balances only. This
has resulted in a reduction OF Omaha clear
ings in the last ten days of % per cent.
This action on the part OF the Omaha banks
not only affects the showing made by the
clearing house, but, in my opinion, antag-
oniZes business interests. II will also be a
factor against bringing about q Consolida-
tion Of Omaha and South Omaha. Prior
TO March ! the business Of tn, South Omaha
banks was almost entirely cleared through
the Omaha clearing house. Since that time,
owing to the arbitrary ruling of the Omaha
banks the greater portion Of the business OF
the South Omaha banks has been eliminated
from the Omaha clearances"
Mr.. McFherson was asked whether it was
the intention Of the South Omaha banks 10
establish a clearing house here and he re-
piled that he hardly thought it necessary, as
only three national banks were in business
here. A local clearing house, in his opin-
ion, would be a needless expense,
Cashier Bostwick Of the South Omaha Ma
tonal bank was shown copy Of the clear
ing house statement along with a request
for information. He said that the South
Omaha clearings had gone through the
Omaha clearing house for some years. hut
that the arrangement had not been entirely
satisfactory. on March II was decided 10
clear checks here and Checks for balances
only went through the Omaha clearing
house. The amount Of these balance checks
run between $50 900 and $4,000 a day and
this amount represents on the records the
total OF business transacted here. In Nj
Bostwick's opinion South Omaha has pro-
yided about 40 per cent Of the business for
the Omaha clearing house. When business
improves here, as II does when live stock
receipts increase the falling of in the
Omaha clearings statement viii be more
noticeable than at the Present time.
In conclusion Mr.. Bostwick estimated the
daily clearings here al between 5000 and