Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1902-10-05
THECLEARIKC HOUSE
CONTINUED FROM FIRST PAaE.)

ing house in this city, as elsewhere, is to
effect at one place daily exchanges be-
tween the several banks In the associa-
ton and the payment at the same place
of balances resulting from such exchanges.
AS is very well known, each bank receives
daily through the mails and over its
counters checks for deposit or payment,
that are drawn upon the other banks III
the CITY. To adjust these, and ascertain
what banks are creditors and what are
debtors, is partly the duty OF the clearing
house. OF course, each bank co-operates
with the clearing house center in this
settlement, and to scure this end messen-
gers are sent from each bank to the clear
ing house every morning with statements.
Every Morning.
At 1915 every morning, except Saturday. 4
and on that day at 9 o'clock, each bank
sends its messenger to the directors room
of the City Bank of Richmond, the head
quarters Of the clearing house. Each mes
senger brings in six large envelopes, each
of which contains the checks paid by his
bank and drawn upon each of the other
banks in the association. To ILLUSTRATED
The messenger from the National Bank OF
Virginia will have an envelope, on the
outside of which is printed, From Nation
al Bank Of Virginia to City Bank" on the
face Of the envelope is written the amount
Of the checks on the inside drawn on the
City Bank and received by the 4,al1onaa
Bank of Virginia the previous day-for
instance S13,zS166. The messenger from
the City Bank has a similar envelope
containing the checks drawn upon the
National Bank Of Virginia, and received
by his bank with the written amount on
the face of the envelope-for instance,
s7,46392 The balance struck at the clear
ing house between these amounts shows
that the City Bank is debtor to the Ma
tional Bank of Virginia on the previous
days business to the amount Of s5,S17.74.
The debtor bank must pay this balance
at IL As o'clock that morning, and the cred
itor bank collects at 1915 o'clock. The
| same opera ton is gone through with IN
the case of the other banks.
Three Things to De Done.
There are then three things to be done
by the clearing house. First, to determine
the clearings; second, to calculate the bal
ances; third, to collect and to pay the
balances. In the settlement of the bal
ances, the clearing house certificates are
generally used They arein denominations
of $1,000 5000, and $4,000. These certifi-
| Gates are in the form of checks. with the
denominations above mentioned printed
on them. AS the debts and credits must
balance, the clearing house is not respon-
sible for the payments of these certificates.
| II the balances run into odd figures of dol
| lars and cents, which is usually the case,
| in addition to the certificates, currency
! to the amount of the odd figures is fur
nished by the debtor bank. It often hap
| pens that a bank can make use of ex-
change on some city at distance, and the
debtor bank furnishes if convenient, the
| oh No
Bank of Virginia happens to be debtor
to- the City Bank to the extent Of $4,000
the latter may have use for that amount
4 in Louisville exchange, and it may be
furnished by the former
| The balances and the clearings are re-
| corded by the secretary in the Clearing
House Register, which is conveniently
| arranged somewhat on the order of the
schedule of rates published by the Pull
man Car Company for use over the varii
| Gus railroad lines.
The Errors Are Few.
| +. OF course, care has to be taken to avoid
| errors in the clearngs and balances and
safeguards are provided by the banks
| and the association for the purpose. The
checks in the envelopes are carefully list
ed, and each messenger has a settlement
sheet with a memorandum of exchanges
! with his bank and the others, showing
| whether his bank is debtor or creditor.
Each messenger presents to the secretary
every morning an exchange list showing
the checks paid by his bank and drawn
upon the other banks, and in each in
stance these amounts must correspond
with the written amount on the face OF
/ the envelope. Errors seldom occur, and
are easily traced by the systematic
method followed in the clearing house.
! IT sometimes happens that one bank in the
/ association is debtor to every other
| bank in balances. It often happens that
one bank will have a rush of credits for
several days, and the fluctua tons that
are shown on the register form an inter-
esting study of the immense volume OF
bank business done in the way of checks
by the people of a prosperous city.