New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-03-28
COUNTRY BANK ACCOUNTS.
PAID FOR N SOME WAY. SAYS CITY CASH.
1ER-THE QUESTION OF CREDIT As
INFLUENCED Ply BALANCES.

INFLUENCED Ply BALANCES
To the Editor OF The Tribune
g, IN replv TO the questions asked by - Coun-
try Bank Cashier" in this morning ISSUE 'l 'o"'
valuable sheet would state I'm response 10 the
ers. question namely. What amount OF country
,o.k rcecrye and reciprocal account balances are
ON doposit n New York banks on W u II" interest,"
&, Md ~. thnt do not believe there - SHkl' '
cunt from a country bank on deposit WIN NV
,,-,, tark which Is not paid for In some way. II
.be country bank does not receiN" interest rum
the New-Yorl, bank it receives collections IN ~"
, .,,s ,eros, iIron q remittance basis inFarlanS
f,orahle 10 the country bank. and the perlod mat
,he proceeds % these collections ar" III t"e P''
.ossior OF the country bank more than oISe'H' ''
MOS, instances any rate OF interest the New ''N
hank can pay Where interest is allowed as il IS
~ most cases. this interest," u 81" "N
20 the country bank
do not believe that 70 is necessary 10 answer me
second question namely. Wha' amount = ""o
iron, the country banks on which no eNchahs' mas
hoo, CHARGED" for the reason mat y l. fuly an
soered IN reply 10 the first question asked Inc
,orL ~ which am cashier does n large country
horr nusiness and almost every account We nave
carries balances In consideration OF an amount OF
collections TO be sent 3; upon these balances
country banks deposits are increased anu inv
,,re for which the amounts collected are held 10y
the country bank alone pays for the balances '"'
~,a1 In Nav York without taking Into cohsiu'fa-
ton the rates OF exchange which are oI''"n's
charged and the amount accruing from the interest
maid upon the New-York balance therefore 'her'
e no way Of obtaining the difference ''t"''"
,e turo items I'm order 10 ascertain the loss ul-
Ice nv friend the Country Bank 'asher W" ''I"-
,,,,e the amount Of interest he has oe'h r'c'n
- s-o-, o,d exchange ne has been charging ms
>-o,- York account FOR tho collections when are
sent 10 him The total o. these TWO items repre-
sonts not entirely. but only in part. the loss on
,ho acco,,nt unless his balances IN New-foik arc
of poodly proportions and MADE up % b''''
amount Of New York city checks
H. ro,l,. IN the assertion that "ihe quotations OF
>-,. vow bauk stocks look Nc II the bankers were
NOT in the business for their health would state
that Mr. Country Bank Cashier Is fulIy as wen
u,are as is the writer that quotations do not al
vvavs signify the true value OF any DahA s''ch
arv more than they do railroad stocks or gas
s,ocks or in fact stocks Of any other corpora
lions Recent panics IN which collapses have oc-
CURED have invariably made suffering 10 those
who have bought securities az what they thouBH'
a fair price when really the corporations repre-
sented by these securities have been rotten 10 inc
core II is needless to mention the names OF any
~ those CORPORA tons FOR We have all had share
in them.
Tho action ~ the New-York Clearing House.
insist has been brought about by imposition poih
nv the country banks and local merchants upon
/ the New-York city banks. The figures arrived a,
through calculating upon accounts under Inc OH
system have readily shown the truth Of this asser-
ton
Replylng 10 the statement made IN the begin
ming OF your article this morning. that the met
F chants hive resolved to take action themselves II
,he, ar. Imposed upon" by the New-iork banks
by Withdrawing certain amount OF fuhds rom
heir hanks. and placing IL with trust companies
mon an Interest bearing basis, ~ould STATE 'hhl
.I.ry ''desrab BILE" merchant AT times. y u, dp'S
b,sluess Of any consequence. l. consldrfabIe or d
i lnrrnwer These "dcsirahlc" merchants are 'uiN
ausre of the fac ana sometimes 10 thelr soIi""
&c IN recent panics that balances are part basis
mon which credit f. extended. and that hit'f
.'.t,rine the reports Of the standing or a nTn OF
cor,orfi0n the balances carried with the bank FORM
Ga, next item investigated. II these balances Ar"
drarn down and the surplus amount IL placed
v,,h a trust company. the credit liability or me
hsnk in which the account iH kept Is dimlnlhhfd
tor II il well known that trust companies. on ac-
comm OF paying interest on money. are nov re-
.nnnshle FOR any credit They pay Tor the money.
and there their liability ceases. as me merchant
viii readily ind out should he apply 10 ON, 10, OF
,bern In which he has kept his money AZ any tlme
he is In need OF credit. ,
For instance. ~ a merchant has been carrying =
/ balance Of 30 nm with bank ana " mas neen MS