St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1900-02-14
BANKERS ASSOCIATION.
The New Ruling of the Boston Clearing
House Explained.


An organization to be known as the
Northern Banking association was form-
ed at Wells River on the evening of Feb.
6, and the members consist of about 30
bank cashiers of the banks in northern
Vermont and New Hampshire. c. w.
Ruter represented the Merchants Bank,
Gilbert E. Woods the Citizens Bank, E.
B. Chase represented the Lyndon Bank
and L. B. Harris represented the Lyn-
donville Bank. At the election OF officers
c. W. Ruiter was chosen one of the vice
presidents and L. B. Harris is on the
executive committee.
The organization was formed for the
discussion of mutual interests and pro-
noting acquaintance among the men,
beers, but the chief business under debate
at the last meeting was the recent ruling
of the Boston clearing house in regard to
RENTING for checks collected at par and
not charging anything up to the clearing
house for collection.
For some years past the country banks
have for the most part been in the habit
OF charging slight exchange on remit
tances made to the clearing house to
make good balances on checks drawn on
them by their customers which are
cleared by the Boston association.
The Boston Clearing House proposes
to abolish this item of exchange and has
adopted the following rule:
From all checks and drafts from whom
soever received, drawn upon any New
England bank or trust company or
banking house or other banking institu.
lions, which does not pay checks and |
drafts upon ITSELF and sent through the |
Boston clearing house by remitting there
or on receipt thereof promptly at par
,hecks upon some member of the Boston |
Or New York clearing house, or upon a
institution clearing through
some such member, the collecting bank
shall charge not less than one tenth of
'ne per cent ofthe amt unit of such checks
md drafts respectively.
This action was taken sometime last |
all and first applied only to the Massa-
husetts banks. OF the 400 banks out
tide OF Boston all complied with the re-
quest. Next the rule was applied to the
Rhode Island banks and all the SO banks |
n that state decided to remit at par.
The 80 odd banks who are standing out
include about 35 in Vermont, dozen in
lew Hampshire, a few in Maine and
bout 20 in Connecticut. They claim
hat the clearing house has arbitrarily
ut off their profits on exchanges and
ONE of them say they will never submit
o the ruling. Those banks which do
ot remit at par are exchanging checks
mong themselves and not sending them
o the Boston clearing house. In this
lumber are the banks at Hardwick,
lyndon, Lyndonville, Barton, Newport,
louisville. Hyde Park, Island Pond,
nd most of the banks in northern New
The four st. Johnsbury banks decided
D acquiesce in the rule of the clearing
ouse, regarding it move to make
very mans check good at its face value
/ all parts of New England. They have
INT to all their customers a list of the
anks not renting at par and announc-
that any check drawn on any of these
Inside banks will be taken for cash or
eposit at discount of ten cents, which
the amount of the fine imposed by the
oston clearing house.
The ruling has precipitated quite a
ght between the country banks and the
oston Clearing House and the outcome
as yet uncertain. Just now it looks as
the clearing house was ahead as they
ave brought into line all the banks in
wo states and many Of the leading
anks in the other New England states.
The New Vermont MILITIA {