The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1904-04-23
MILLIONS.
IN GOLD 10 BE STORED AWAY vs. &c
CLEARING %HoUsE5ADoPTs #s8a
Ian
PREVENT THE WEAR y. AND
3s TEAR ON UNCLE SANS
FILTHY LucRE. III.

-
Gold to the amount of S2,5O0,OO0 or
So, 100000, i've or ten tons of IS, $40
and $50 gold pieces, is to be stored
in one ofssthe Pittsburg safe deposit
vaults by the Pittsburg banks,
through the Clearing House, to save.
the bother, expense and loss of hand
ling the money in Clearing House
settlements The Executive Commit
& tee of cne Clearing House has sub
mitted resolution providing for the
new plan, and it will probably be.
acted upon by the Clearing House be-
fore the end of the month.
The Clearing House banks Viii
store the gold in ~-,e custody of the
4 Clearing House and in future, after
the new plan is in operation Clear
I ing House certificates Of the denom-
ination of $4,000 each will be used in
making Clearing House settlements
J. Instead OF the actual cash. AT pres
emit a bank having a balance against it
at the Clearing House sends the mon
ey5 to pay it and the banks having
Z money coming to them are paid with
this money. Paper money is often
scarce and the banks need all they
have for their customers and the
Clearing house settlements are made
in gold coin to a very great extent.
+ The constant counting and handling
of the gold wears it, and this will be
saved by the proposed new. system.
The wear on $40 gold piece might
not seem to be much, but in reality
tits very great. A short time ago
when a Pittsburg bank sent 100000
in gold coin to New York City to
pay a balance it had over 5000 in light
weight coin thrown out. Another bank
recently suffered loss of about $3.50
on a single shipment. The bother and
loss incident to making the Clearing
House payments in cash are to be
avoid led by each Of the Clearing House
banks paying into the Clearing House
gold enough to make up a total Of from
s2,5OO,OOO to $5OO,OO0,O0O or perhaps
more.
Against these payments the Clear
ing House will issue $4,000 certificates
that w1iI be accepted and paid out as
cash in making the daily Clearing
House settlements. Odd sums over
mu1tiples Of $4,000 will be madc up by
cashiers checks. National banks are
3 required to keep half their legal re-
serves in cash in their vaults, but the
y COMPTROLLER OF the Treasury will al
low the Clearing House certificates
as cash. For this reason the banks
win be eager to turn gold over to
the Clearing House and save the vault
room and the trouble of counting the
gold each time there is an audit or
an. examination by the bank exam
s liners.
The place where the store of gold
is kept will be opened only in the
presence of three representatives OF the
Clearing House and the custodian of
the safe deposit vault and notice must
be given in advance when any bank
wants to withdraw any Of its gold.
This will not be often, for, as rule,
a bank will simply cash its Clearing
House certificates il it wants to draw
on its store of idle gold. The plan has
been followed for some time by the
New York and Philadelphia Clearing
Houses and has been found great,
{ inlprovemen over the old way.
Farmont's Brave Sight.
The best wishes OF every dweller IN
"a river town are with Fairmont in her