New-York tribune., 1907-10-29

rst.onaJ. also q mcn1foer OF the Clearing HOUSE
committee, SAID:
-AIonev conditions are r7Cch amproNeu OHl
wall Street should not expect bankers 10 go o''
..,,,,,,-.n, Indefinitely call money. There will
So M n,o-. pools. The action Of the New York
Cqear,ng House Association in issuing certlh-
cafes should obviate any further money pool ar
rangements Persons requiring funds should
,,,,,,,,-nicafe at once with their banks to ar
range for their loans
T-,der the pool arrangement 4 broker OBTAIN
ing part Of the pool money took his collateral 10
= designated member Of the pool, which on de-
uosit Of the collateral made him the loan. CPoh
the dissolution Of the pool the bank in the pool
n which the broker had been directed last week
for getting his loan renewed the loan II the
broker happened to he a customer Of that par
iictlar institution; otherwise it called the loan
TINS had the desired effect of obliging the pro
kcr.s 10 deposit IN their own banks the col
lateral for the amounts for which they had been
o,ercertiaed and the banks made advances TO
them on this collateral As the banks take this
collateral; to the Clearing House and obtain
against It Clearing House certificates with
which they make good their own debit balances
due 10 the accommodation afforded their Stock
Exchange customers. the latter now carried
directly by the Associated Banks.
In the operation OF the loan certificate plan,
bank having debit balance at the Clearing
House presents the certificate which it has OBJ
fained on deposit by il at the Clearing House Of
the proper collateral 20 a bank having credit
balance the latter receiving from the former
interest at the rate OF per cent. The rate
which the bank having the debit balance charges
its customers for the accommodation which is
the reason for the debit balance is not limited.
the policy OF the Clearing House being to make
that interest rate SO high to render it too eX-
pensive TO speculate. the result aimed at being
the retirement Of the Clearing House certif-
Gates at rs early a date possible.
The following cities have adopted the plan
cf the New York Clearing House Association IN
issuing clearing house loan certificates: Chi
oago. Philadelphia. indianapolis. St Louis, Bal
tiInore. Omaha. Pittsburg. Milwaukee, Cincin-
natl, Boston. Sioux City. Iowa; Detroit. San
Francisco. Moorhead. Mimi; Fargo. n. d; Fort
Wayne and Lafayette, Ind ST. Paul, Minneapo-
and Duluth have not formally issued certif-
Gates. but are using certified checks instead Of
cash payments.
CLEARING HOUSE QUESTION.
There was much discussion yesterday OF the
plan 10 bring the trust companies into the Clear
ing House. 1t was understood on excellent au-
thority that both the Clearing House members
Snu htle iedGiuS uuSL companies were strongly
in favor Of this move but It was said that It
would probably be at least thirty days before all
the details were worked out and the trust COM
psnies, at least such OF them as were willing
20 meet the Clearing House conditions, were
admitted to membership.
II is understood that two alternatives on
which admission may be gained VIII be outlined
for the consideration of the trust companies
One VIII be that they keep 25 per cent reserve
in cash against their demand deposits, which
are estimated to average so per cent Of their
total deposits. This is the reserve maintained
by the member banks
The other alternative which the Clearing
House, it is said, is willing TO accept is that
the trust companies which become members
keep 10 per cent reserve in cash against total
deposits. The members OF the Clearing House
look upon the trust companies as really banks
and VIII insist that they be treated as such in
the matter Of qualifying for admission. When
the trust companies apply under one or the
other Of these conditions, the Clearing House,
it is understood, viii be ready to admit them to
full membership.
At present the trust companies are required
hy law to keep per cent reserve IN cash, )
per cent in another institution and > per cent
in bonds.
CLARK WILLIAMS OPTIMISTIC.
Clark Williams, State Superintendent Of
y Banks. said last night that he was greatly
ID pleased with the outlook in regard 10 the state
banks The outlook he said 'fs very bright,
and by the end Of the week everybody should
be happy. While trust companies and banks
are, OF course, still under Stress the press
ure is greatly lessened. Arrangements are now
under way for the banks which suspended "a
resume business. and 1 have no doubt that this
VIII be speedily brought about"
Asked to give the names Of the banks which
would soon resume, Mr. Williams said Il would
rot be fair 10 do this. as il might work an injus-
tice TO some Of the other suspended banks from
which he had not yet heard. He said that per
mission TO reopen wouId have to come from the
Attorney General. Asked how long a banking
institution could keep Its doors closed without
passing in;o the hands OF q receiver he said
that this. too, was in the hands OF the Attorney
General.
The loan committee OF the Clearing House
met early yesterday morning and was in session
until o'clock passing collateral offered BIZ
the various banks which wanted Clearing House
loan certificates ana issuing the certificates
William Sherer. manager of the Clearing House
announced that daily statement OF the
amount Of Clearing House certificates issued
would be made public. He also said that the
certificates would bear per cent interest.
Dumont Clarke, the president of the American n
Exchange National Bank. and q member of the