The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-12-28
Plan TO Facilitate by Coupon Clearing
House Being Discussed.
WOULD DECREASE COST OF PAYMENTS
How s5o,oooooo Emergency Fund
Would Be e. ised--Stiln,an g. Rogers
DisS- rec Over Copper.
Special to The postl

New York, January 2T-The enormous
January disbursements OF interest and divi-
bends, aggregnting perhaps 5000 900, 900 for
New York, Boston and Philadelphia, most
Of which will be paid out next week
Thursday, but which viii make such a
heavy strain ON the banks, have led to
serious discussion in financial circles about
the adyisability Of establishing a clearing
house specially for the exchange OF coupons
and dividend checbs. Several bankers have
taken the matter under advisement and VIII
make an early report about the matter, sug
gestlng a plan Of procedure II they conclude
that a coupon clearing house Is practicable
1t Is believed that such device would d.
minlsh many fold the amount Of cash need
ed for making the great interest disburse-
mcnts at the four quarterly periods-namely
January 1, April ], July l and October l.
and consequently do away with the string
ency In interest rates that occurs during the
week or two prior to these payments, which
results from the temporary arrangement of
many loans.
As indicating what would be gained, It
may be noted that as a result Of the New
York bank clearing house system some
times balances Of $5OOO0.o00 or more are
settled by single institutions by the use Of
several thousand dollars in cash. Only sew
eral days ago the National city bank put
through over $4,000. 600 with a nominal
amount of cash figuring In the transaction
II is presumed that if ID coupon clearing
house il established, u would be an nc
crssory to the present Clearing House asso-
II now appears that although exterior dis
mrhauces such as Neue2uelau war compu-
cations, are not likely 10 affect the local
money marhet or influence stocks, the scar
city Of funds NJ this center rendered II alb
somtely necessary TO form the S50,O00OO0
hFnkHr@' syndicate DOFInW-
ers that they would not get left when the
end Of the year squeeze comes. The reason
TO New York from the interior In any large
amount as in previous years, and In view OF
the continued treasury Withdrawals for
customs and actual shipments to such cen
ters as New Orleans and Boston, there
would be danger Of panic among borrow
crs without the assurance referred to. IL
Is reasonable to assume that the urgency to
obtain time loans, which was manifested up
TIL the time the bankers pool was formed.
would hGyo frrttcd themselves into fever,
through inability 10 obtain relief.
DEPEND on AMPLE CALL MONEY.
Now they are depending on the faith
cure" ms tho guarantee Of the syndicate Is
called, and they are trusting 70 the promise
that they viii be able 10 get all the call
money they need The pool, however, has
set % per cent as the lowest figure ut which
any Of the $50, 600 win be loaned ont.
This is It's opinion MS to when an "emer.
gency" requires IT, The question asked on
every hand is where the bankers pool win
get all this money. It is generally assumed
that the syndicate has no mine In It's bnCk
yard from which II can draw out a new
supply Of money. IT IS probable that II viii
have to depend on the local banks for It's
funds-that most, II not all, Of its resources
are right there. If so, II Is difficult 10 see
how the money market is to be benefited by
the Faith cure plan, IN the event that help
has to he given. II Is manifest that In case
OF an emergency that the local bankers can
not cope with, IL will be necessary TO bring
money In from the outside ana the syndicate
may mud Itself Mt It's Wits ends TO get It,
They would, no doubt, draw largely on the
interior banks and would probably make an
other appeal to Secretary Shaw to reeas(
treasury funds. The latter plan. however
is not likely 10 work Shaw has Informed
the bankers that the government workiua
balance Is down so low he can do no more
II the opinion Of prominent bankers /.
worth anything there need be no fear about
the January payments going through with
out q much further rise In interest rites
The trend OF the stock market shows that
the big people feel confident that they hay,
the situation pretty We'll In hand.
story was current today that JBmes
Stlllman and Henry H. Rogers, two stan
dard on men. had had falling out over tht
copper situation. Mr. Stlllman as presi
dent Of the National city bank is the con
fdcntlul man Of the Rockefellers WIN,
Mr. Rogers Is also In charge Of some OF Tho
prominent schemes Of that cOtcrie Of CAPT
talsts. Rogers took charge OF tho Anal
gamnted Copper company after William e.
Rockefeller had steered 1t into shoal water
by trying to hold the yrice Of copne
Rockefeller, although lomiuully treasurer
had really been allowed 90 run things, $,
as to get his hand In" In business way
When things came down IN a heap an'
the Amalgamated dividend tumbleo troy
to ? per cent, Roge.s was asked to tab
the helm. since then ne mas hlnd,cd t3lng
with hrn hand, but Is reported TO hay,
displpased some of the insiders, includlui