New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-04
RAPS BANK STATEMENT.
SAYS IT TELLS NOTHING.
Nash Wants Trust Companies to
affiliate zcith Clearing House.

the New-York Clearing House Association was
an address by William A. Nash. president of the
Corn Exchange Bank and retiring chairman of
the Clearing House committee. in which he took
up the subject of the relation between the trust
companies and the Clearing House. and also
criticised the weekly bank statement as at present
made up
Mr. Nash said that something ought to be done
at once to end the estrangement which now e1-
/ lists between the banks and trust companies. 1t
his opinion that the trust companies ought TO
be made fun fedged members of the Clearing
House Association, or. falling that, should again
be made TO clear through Clearing House banks.
as non-member banks make clearances. He
suggested that perhaps the rules Of the associa-
ton dealing with trust companies too harsh
in reserve requirements, and that the trust com
panes ought to have the same privileges as those
granted to State banks
Regarding the weekly bank statement, which, in
his opinion, farcical. and did not disclose
actual conditions. Mr.. Nash suggested that it be
changed SO as to make clear, in separate tables.
the condition OF the national banks the State banks
and the trust companies. if the latter resume af-
fliation with the Clearing House. After much dis
ousson the following resolution was presented by
Mr.. Nash and was unanimously adopted;
Resolved, That the Clearing House Committee
be required to consider the relations of the Clear
ing House and the tfSs h Ta 20 sne on emo
basis that Will insure their right TO the Clearing
House either members or through representa-
tive banks
On November s. 1929 the Clearing House
nittee adopted resolutions bringing under its jurs
dicton the trust companies clearing through Clear
ing House member nOn-member banks. These
resolutions provided. first, that no trust company
should be permitted TO make such clearance unless
It should been in actual operation for at least
a wear prior the date of its application for the
privilege; second, that examination by a commit
tee of the Clearing House Association should be
condition Of the granting of permission clear
through a. rmeher non-member institution;
third that every trust company so clearing should
furnish 10 the of the Clearing House Asso-
citation A weekly statement Of its condition
ON February TO- 1908. the Clearing House Assocts-
ZION ,7nsnin7o11sly adopted regulations presented by
the CLEARING House Committee relative to trust
conranv reserves L was required that every non
member institution. not bank required by law to
maintain a specified reserve "a trust company,
therefore, nor or hereafter clearing through =
member of the association must after June keep
in rs vaults p per cent cash reserve against
its average deposits shown in its weekly state
nent
ON Fehruary- / 1924. the percentage of cash re-
serve was to be raised III per cent, and on and
after June / 1903 it be fixed by the Clearing
House committee. the minimum reserve tosbe re-
qured TO be 10 cent, and the maximum 10
per cent
Il was argued that If the deposits then held by
the trust companies clearing through the Clearing
House, amounting to about SH7,0o00o0. were held
by banks there would have to be kept a cash re-
serve against such deposits of about I1o0o0O0o.
against them, although least So per cent of the
deposits were payable demand. and that that
situation subjected the reserves of the Clearing
House banks to severe strain In times OF financial
stringency. Twenty-six trust companies in this
borough and Brooklyn and one at Bayonne. N. j.
at that time cleared through members of the Clear
ing House Association.
The trust companies at once made known a dfsin-
clination to comply with the requirement that
they maintain a fixed cash reserve. and on April
Union Trust Company, which had
cleared through the Hanover National Bank, aban-
doned its aflliauon with the clearing Rouse. OtnsE
large trust companies speedily took the same step
and for the last two years pracuca!ly az OF tns
trust companies have been without Clearing
close Of every business week which had been heard
for some time became general IN the financial dig
the statement issued that day All Of Fridays
compilations from the known movements of money !
during the week agreed that at least sIo100OO had
gone out CT the cash reserves. and traders had /
carried operations on the basis of bank state
e9t {R$ nsead " ene of
more than 100000 an increase of S,522S00 was |
The statement also reported a reduction of 81 |
$4,000 in loans while unofficial compilations had
during the week The methods employed in reach |
esen ' xp9aed b IT has been s1gsesd that
gold engaged in London and also that in transit to
by which it had been engaged 1t is also reported |
that certain large cash shipments made last |
week to local banks from interior cities,
Dumopt GIaTket pTeslaeet OF The AmeLiesn E1-
change Natlonai BanK Mas SesteTaaX eiecte4 preSi,
customary second term, and Walter j. Frew VIII |
fam Shcrer and William J. Gipin reelected, |
respectively secretary, manager and assistant
ager. James Stiilman, president OF the National |
City Bank; J. Edward Simmons. president Of the |
Fourth National Bank, and Richard Delafield presi-
dent Of the National Park Bank. elected to |
the Clearing House committee. The other mem
bers are William II. Porter, president Of the |
Chemical National Bank chairman, and Valentine |
P Snyder, president Of the National Rank of Com
merce.
The new chairmen Of the other committees are; |
Conference committee, Edward Townsend prest-
dent of the Importers and Traders National Bank:
nominating committee, Stephen Baker. president OF |
the Bank of the Manhattan Company; admissions
James @. Cannon, vice president of the Fourth Ma
tlonal Bank: arbitration, F. B. Schenck, president |
OF the Mercantile National Bank
The following figures are from the managers ar
nqal report. submitted to the annual meeting:
Clearing House transactions for the year ended
September 30-Exchanges. $91 S79 S1S 369; balances
3d. 1884 80: total transactions $5 S3 32 So
Average daily transactions Exchanges, S3O2 pa
693 So balances. SIS OoS 10 81: total :35 2407O S.
Total transactions since the organization of the |
Clearing House (hfty-two yearF)-Exchanges, 81 ST.
5z7 GO Id * balances rs sac KID 7e7 +otI q 7Se