New-York tribune., 1907-10-27
CHICAGO FALLS IN LINE.
Clearing House Certificates and
Deposit Time Limits.

Chicago, Oct. 26.-The Chicago Clearing House
Association announced tonight through n committee
that It had decided TO issue clearing house certh-
Gates II was also resolved that Chicago savings
banks should require from their depostors the time
notices provided for In connection with the with
drawal of such accounts.
It was stated that the action taken TO pro-
vent an undue drain on the cash balances OF the
Chicago banks from outside institutions No ques-
ton Of the solvency of Chicago banks IS involved,
according to members Of the committee. who say
that none of the Chicago banks has asked for or
needs assistance.
The meeting was attended BY a committee from
the Milwaukee Clearing House Association which
informed the Chicago bankers that similar action IS
to be taken in Milwaukee tomorrow.
Action by the Chicago Clearing House taken
after an eight-hour session. The financial strin-
gency in New York tho primary cause OF the
meeting. and the situation thoroughly dis
cussed before a committee consisting Of J. B. For
gan president OF tho First National Bank: J. ].
Mitchell, president of tho Illinois Trust and Saw
ings Bank and Z. a. Potter president of the
American Trust and Savings Bank, who ap-
pointed to draw up the new rule and mako public
official statement of the action The statement
follows:
Following the action of the New York Clearing
House Association, the members of the Chicago
the situation.
In the interest Of deIp9sitors and the public and
as a basis OF immediate general assistance, the
Clearing House resolved to issue Clearing House
should require from their depostors the notice pro-
Vded for In connection with such accounts
The immediate result Of the existing stringency
is due to conditions not local 10 Chicago The
Clearing House banks in New York City have con-
cluded to issue Clearing House certificates. while
the large savings banks there have also put the
rule requiring notice Of Withdrawals in force The
clearing houses of other cities I'm session have
taken similar action. While there has been no un-
usual demand as yet upon the Chicago banks this
course in Of the general conditions prevailing
elsewhere. seems the wisest course to pursue.
The effect will be that banks will be enabled TO
adjust their balances between themselves with
certificates while the actual currency in the banks
will be reserved for imperative needs: II is appar-
ent that this result will be materially aided by the
concurrent action Of the savings banks.
1t is believed that this course IS only temporary
and that the general situation will soon clear so
that normal conditions will prevail The Chicago
banks are in exceptionally strong position. No
one needs any relief but II some such course were
not adopted the currency in this city would be un
duly drawn upon for other communities
The Clearing House Association hopes that upon
reflection it's course will meet with the approval
Of all depositors and patrons Of the banks and
ceive the hearty cooperation of the entire com
munity.
The meeting of the association attended by
representatives Of all the Clearing House banks in
Chicago and the following bankers of Milwaukee,
William Bigelow. F. VOgel. jr., Frederick HASTEN
ir, John II Puelicher and e \. Farmer