St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1900-03-14
BANKS STRIKE.
Dissent from B0ssen Clearing House
Association BuIe.

nc Odulug BANKS OF vermont HaN
IL practically gone on strike" against I'll
lie Boston clearing house association,
IS connection with the latter organization
q scheme to bring all the banks of Me-
England into its "foreign" clearing d.
J partment, and the clearing house assC
c citation, in retaliation, has PRACTICAL
blacklisted the Vermont institutions.
In pursuance of this policy it has gon
r to the extent of providing for the imposi
t ton OF a $1,000 fine on all banks in tn
association which fail to exact charg
OF not less than one tenth of per cent
upon all checks OF the prescribed banks
The rule adopted by the Boston clear
ing house association providing that al
checks through country banks be re
mitted to the clearing house at par was
issued Dec. 81 last.
All the outside banks in Massachusetts
and Rhode Island, and many in Maine
acqulesced in the regulation, but in Yer
mont, New Hampshire and Connecticut
considerable opposition was manifested,
the largest number OF "klckers" being in
| Vermont.
The Boston clearing house association
at once proceeded to discipline these re-
fractory institutions, and issued an Off
ciai circular STIMULATING that after Feb. 1
charge ofone-tenth Of l per cent. OF their
face. ii amounting to 500 or over, and
o. 40 cents If for any amount less than
that sum, on all checks drawn upon
them, must be exacted by the banks in
the association. A
There are 80 or 40 banks in Vermont
which refused to come into the Boston
fold, 10 or IL in New Hampshire and
about rs in Connecticut.
1t is understood that the Vermont
banks have recently formed an associa-
ton, to fight the Boston association,
and one institution up there has carried
the war into South Africa by inserting a
display" advertisement in the Boston
papers, announcing that it will collect
Tor ITS customers checks drawn on any
bank in New England, and credit the
same at par on the day of receipt.
AS this is one of the nonconcurring
banks, it is evident that this is being
done as dare" to the Boston associa-
ton.
The bank in question has capital of
$1,000 and surplus of $40, 900, and
has two Boston correspondents. The
appearance OF the advertisement has at
tracted considerable attention in finan.
clal circles here, and it indicates the
depth of the anti Boston feeling that
Exists in Vermont over the par or charge
question.
UP in the northern part of the state.
he national bank at Wells River con.
orms to the Boston clearing house rule,
while the Woodsville, N. H., national
'ank, just across the river, exacts the
usual charge.
SO confident are the officials of the
Wells River bank as to the business of the
tand taken by the Boston association
hat they have decided to receive from
heir customers checks from the pro-
cribed nonconcurring banks par, paw
AZ from the banks own funds the
harges made obligatory by the rule of
be Boston association.
The marked difference OF policy that is
'und even between country banks is
retty well illustrated by comparing this
lst mentioned move with the practice of ]
rtaln other banks of clipping" even
leir own checks.
A prominent Boston banker who has =
ad considerable to do with the forma- y
on OF the foreign" department of the T
cal association, informed the Globe re- :
orter yesterday that there are many
anks in Vermont and New Hampshire
lat pay all their running expenses with d
lie revenue derived from dscountinp a
ecks, many of them sending their own
ecks broadcast among their customers {
I'd exactlng a charge on them when pre-
nted for collection. y
This is nothing less than form of
pudlation, and is entirely contrary to J.
odern banking principles" said this
ntleman. a
When asked what he thought the out
me OF the present rebellion would be he d
Piled: 70, 1T can end only in one way. O.
re the war in South Africa. You might @
well try to stop all these teams out
re on State street, for no reason other
an whim, as to attemptt to defeat the
scheme which the Boston W
caring house association has started "
It to accomplish.
The only ground for objection on the +
Irt OF these opposing banks is the fact .
at 1t is going to deprive them of Just so
UGH revenue, which, as | have already
ID, often pays their running expenses.
heard of one country bank in New
,rk state, the other day, which cleared
700 last year by clipping its own
ecks. don't believe this Vermont or
nized opposition will amount to any, :
ing. 1t is all bluff, and those banks
we got to come in with the others
oner or later. AS banking center
'rm1ort is rather hard proposition -
'yway." Ia Ia
some OF the up country banks are en-
ting the cooperation of their custom.
sin the present fight, and several of ar
latter have declared that If checks ON da
E local banks they do, business with on
lach are sent to Boston merchants and 81 81
hers are not accepted atpaE,.".they will c.
cept them" ll1Q L.
This threat would seem u tom imply the ON
ssibility of a commercial, as we'll as to
anclal boycott, and suggests all sorts he nc
interesting possibilities, The contest bu
ay reach such point that the Vermont R
'senters and their New Hampshire "a
mpathizers may organize an independ- 81
clearing house association of their loi
vn. Pr
n