The silver state news. [volume] (Winnemucca, Nev.) 1907-1909, 1907-11-04
NINNEMUCCA USES
CLEARING HOUSE
Certificates

matters the banks all over the
country are adopting the
clearing house certificate plan.
This seems to be a safe and
{ effective method of handling
the situation and should re-
ceive the approval and cooper
alton of the depositors and
business men generally. This
plan has been in force for sew
eral days in all the import.
ant cities from New York to
San Francisco, and at meet
ing of Representatives of the
four banks now open in Reno,
it was decided to place the
banks of that city on the same
basis. After the action had
been taken a petition was cir.
culated among the business
men asking them to agree to
accept clearing house certif-
Gates as coin, and without ex-
ception every man to whom
the petition was presented
signed it willingly, some even
expressing their pleasure at
handling the paper instead of
the hard coin.
Cashier Lee of the Nixon
National bank, discussing the
matter, stated that the action
was taken merely to prevent
the banks from being drained
of the supply of coin they now
have on hand. "We cannot, T"
he said, "get coin from San
Francisco; San Francisco can
not get coin from New York,
and this action has been made
imperative. 1t is working sue
cessfully in other places, and
Reno people are taking kindly
to it because they know it is
necessary. No inconvenience
is going to be caused anybody,
and in a little while conditions
will probably right themselves
and the necessity for using
clearing house certificates will
be removed -
So far as we can see, the
only inconvenience likely to
arise from the adoption of the
plan in all the large cities, is
that it may work hardship
on the banks and business men
of the small towns, unless the
latter take some similar ac-
tion. As rule the small
banks carry the greater part
of their funds on deposit in
the banks of the larger cities,
and if these banks stop pay
ing out coin, it may cause a
shortage of currency in the
small places as well. How
ever, it is believed this situa-
tion can be met by the local
banks issuing drafts on their
correspondents in payment of
checks. These drafts and
checks can be circulated local
ly and will be honored by the
local merchants. OF course if
the holder of a local bank s
draft desires to send it to the
bank on which it is drawn he
can do so, in which ease it
would probably be paid in
clearing house certificates,
which would circulate in all
the large cities as currency.
Assistant Cashier Tobin of
the First National Bank of
Winnemucca stated today that
the system involved in the
plans were the same embraced
in all clearing house systems,
and was resorted to as a means
of Strengthening out the finan-
eial condition, which had been
brought about by the lack of
confidence of the financial in
terests.
The following agreement
was circulated among local
business men and signed as
follows:
"In view Of the financial
situation and the fact that all
banks in the money centers of
the United States arenow on
clearing house basis, making
it impossible to have coin or
money shipped to our local
institution, we, the under
signed, citizens and business
men of Winnemucca, having
full confidence in the stability
and soundness of the First Ma
tional bank, do hereby agree
to accept cashiers checks or
drafts, issued by the above
bank, in payment of all debts
and in the transaction of bus
mess, until such time as the
clearing house rules are. re
laxed.'
+. N. MULLER.
THE PEOPLES STORE.
WINNEMUCCA NERO. co.
EAGLE DRUG & JEWELRY Go
Nj b. STAUNTON q co.
+. RElNHART & co.
DAVIS & DRAKE.
HAVILAND & HOSKINS.
FELIX POUL1N.
p. J. MANGAN.
PEARCE & CASE.
ID. CORDANO.
ID. j. HADLEY.
ID. j. BIGGINS.
METH & EVANS
F. 9. ROBINS & co.
+. l.. WILSON.
THE NORRIS HOFFMAN co,
+. l.. DEDMAN.
A. RUCKTESCHLER.
nTfOII IInnINJ