The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1907-10-31
BANKS PLACE IOWA
ON A SOUND BASIS
DIES MONIES CLEARING HOUSE
FOLLOWS EAST.
AID DEPosIToRs In THEIR AIM
Clearing House Certificates to Make
Their Appearance Today--con-
ditions in Iowa Were Never
More Favorable.

Des Moines. Oct 2S.--Members OF
the Des Moines clearing house we're
\ in session almost all day yesterday and
A decided to resort TO the issue of clear
\ ing house certificates as means of
4 protecting the banks Of Des Moines
and Iowa and their depositors
II has been suggested that the banks
in Iowa towns and cities where there
are no clearing houses take similar ac-
tion to that of the Des Moines and
4 other clearing houses; that is, that
they win limit the amount of cash
payments until the present stringency
OF the money market is over. In this
way, it is pointed out, the smaller
banks and repositories throughout
Iowa viii tide over the situation and
there will be no losers.
With this action of the clearing
house comes the assurance of every
banker in Des Moines. as well as Aud
itor of State b. F. Carroll, that Iowa
and Iowa banks were never in better
condition than they are at present, but
that New York, Chicago and other
banks have taken similar action and
\ in order to protect the Iowa deposit
1 ors 1t Is necessary for the Des Moines
banks to refuse TO lend money or issue
currency in excess of any agreed
amount.
At the same time the decision was
reached to issue clearing house certifi-
Gates it was decided that Des MONIES
savings banks should temporarily re-
quire their depositors to give sixty
days notice of their intention to with
draw their deposits as required by the
law.
Action Is Precautionary.
I his action is precautionary and
was taken solely as a means to pro-
tect the cash Of the depositors in the
banks of Des Moines and Iowa. 1t
will prevent drain upon the curren-
cy supply in Des Moines by the coun-
try banks which, by Immediately with
drawing their accounts, could take
much money out of Des Moines, while
the Des Moines banks, being unable to
withdraw their funds from the banks
of Chicago, St Louis and other large
banking centers, could not at this time
repIenish their supply.
The action of the banks is not the
result of any financial disturbance in
Des Moines or Iowa. There is not
bank in the city that is the least dis
tressed or even suspected of being so
by the members of the clearing house
committee. All of them are in sound
condition.
Those banks that are not members
OF the clearing house but clear through
other banks will be furnished with
clearing house certificates the same
as members, and this means that ev-
cry bank in Des Moines win stand be-
hind every other bank and its depos-
itors.
Homer A. Miller and Arthur Rey-
nolds of Des MONIES went to Chicago
and kept in touch with the Des MONIES
/ clearing house yesterday by long dis
lance telephone.
Effective Today.
The action Of the clearing house
went into effect in Des Moines with
the opening Of business this morning
The clearing house resolutions in
fun follow:
-Be it Resolved, That the president
or vice president and the cashier or
assistant cashier Of this bank, be and
they are hereby authorized and en-
powered to procure from the Des
Moines Clearing House association,
such clearing house certificates In such
amounts as said officers may from time
10 time deem needful for the uses OF
this bank, and to make, execute and
deliver to ]. ID. Whisenand, Homer A.
Miller and G. Z. MacKinnon, clearing
house committee OF said association,
as trustees, the promissory note or
notes OF this bank for the amount or
amounts of such clearing house GER
tifcates, and to pledge as collateral
security for the clearing house certif-
Gates so procured, and said note orr
notes, such bonds, stocks, bills receiv-
able, or other property or assets of
this bank, as may be required by said
trustees, to secure the payment of said
note or notes, and certificates; said
collateral to aggregate 80 1-3 per cent
more than the amount of the clearing
house certificates procured, 1t being
understood that a pro rata amount OF
such collaterals shall be returned to
this bank as said notes and clearing
house certificates are paid by this
bank; and be II further
Resolved, That said officers of this
bank be further authorized and empow.
cred TO pledge and there is hereby
pledged the credit OF this bank for the
security of any and all clearing house
certificates issued by said Des Moines
Clearing House association OF under
its direction, whether such certificates
be issued to or for the benefit Of this
bank, or to or for the benefit Of any
other bank in the city OF Dies Molnes,
Iowa. And said officers are further
authorized and empowered TO execute
IN the name OF this bank any and all
contracts. agreements. and obligations
required or deemed necessary to carry
out the objects and purposes Of these
resolutions; and be II further