Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1907-11-02
SALVATION or THE N Y.

The principal banks throughout the country have been put n what
is known as the clearing house certificate basis, and this is without
doubt. going to prove the salvation of the country.
The system means that certificates Of the clearing houses will be
used in lieu of the coin, by which method there will be left in n banks
in the country, plenty of money for the transaction OF the ordinary BUSH
ness The certificates are similar in import to a certified check, with
these two exceptions. A certified check has the seal Of one bank upon
TT or its worth. and is payable upon presentation. A clearing house
certificate has the stamp of approval of all the banks which are members
of The clearing house and every bank of any standing in the big cite
is q member; but it is not redeemable in cash until the clearing houses
80 viii It,
The system is by no means an experiment 1t was in vogue in the
manic OF 1898, and has been adopted on IN OF two occasions since New
York bankers deemed it wise to put it into operation at the present nj
and the various cities throughout the Union have seen fit to follow suit
There is need of all the money available in the United States to meet
the demands of the situation.
n he situation is this: The ery Of hard times a raised months
AGO and like the cry of" wolf" hard times finally came 1t came for the
reason that people took fright, and began Withdrawing then money from
she banks. and putting it away in what they deemed safer places The
of means put his thousands in safe deposit vaults; the workingman
nut his hundreds away in tin cans, in sacks, stockings, uhdef the caF
net anywhere where he could have 1t and be sure of it.
This m sound ridiculous to the Ia who does not stop to think
bu, II is strictly true. There is only a certain amount of money in the
United States, In the world II hundreds and thousands nnhoh
Rnany. are taken ont Of circulation, there is bound to be a halt called III
usines There never has been a year in the history of the world when
work has been so plentiful. particularly in the United States
rbe most gigantic enterprises wore launched, and more money than
aver va needed to carry this on. In the ordinary run of business, It
would follow that the bulk of the money went to labor Labor. in its tarn,
woud nut it into circulation again through the medium Of the grocer
she butcher, the baker. the shoemaker, the clothier, etc. n what va
w.uod from the mel of living, would find its way into the bank, The
rest of the money that labor mad spent ouio het W""s" Wv """
channels Of circulation.
Put when it came to the money stopping at labor. the entire none
.v svstan NJ the country "a upset. There was less paid 10 the
butcher the baker, etc, and none at all finding It's into ~ saving
h,oks Money 81 withdrawn from the banks instead, and hidden
from sight. That money was in the country, but 1t was dead When It
4 taken into consideration the enormous amount Of money paid ont %
labor. the spriting away OF a few months wages @yould produce q =.
,,caable decrease Of the money in circulation; and when 1t came to sv
mf months more o this making away with the coin OF the realm a very
serTous condition arose. Between the worbingmen and women, and me
man Of thousands Withdrawing their money, there "a a anu