Omaha daily bee., 1907-10-28
Clearing House Clerks Busy Preparing
to Issue Certificates.
CONSERVING CURRENCY SUPPLY
Small Checks Are the Only Ones that
Will Be Paid in Cash
ACTION TAKEN IN OTHER CITIES
Chicago, Cincinnati, st. Louis and
Milwaukee win Issue Clear
ing House CertiA-
Gates. I

Following the action of clearing houst
associations in ali parts Of the country
Yesterday, and after being In telephomo
communications W th pra tically every large
city I'm the United States since midnight
Saturday, the Omaha Clearing House as
sociation announced Sunday evening thae
il has decided to issue clearing house GER
tihcates, and suspend payment OF large
amounts in cash. during the coming week
at least.
Savings banks of Omaha will act durinG
the day Monday, and It is possible that
they will require from their depositors the
notices provided In connection with sueh
accounts, which in Omaha Is sixty days
So far as the local situation is con
/ earned the bankers insist that they have
no fear of anything more than some In.
convenience in business. Those who apply
at the banks during the coming week tor
amounts larger than 500 will be given
! clearing house certificates. which VIII 90
backed by the resources Of every bank IN
| Omaha, and which will be accepted as
money for any debt. as they will have coli
lateral back Of them. dollar for dollar
! The certificate plan will protect omahans
J from having the currency in the banks
drawn out and kept out of the channels
! of trade, as has been the case where the
money has been drawn from eastern banks
President Yates gave (he followina
statement after meetine> the clearins
house,
{ The action taken by the New York clear
/ ing house to issue clearing house certit-
! Gates has been followed by similar action
II tSe CtSSS cisariD9 houses In tie tie United states
! Under the circumstances, the Omaha Clear
| ing House association, which now embraces
+ to adopt the same course. So far as local
! conditions here are concerned not ths
slightest cause exists for thiS setion' tIe ,,,.
! should continue on currency basis, but
I closer reflection will show that for self
protection and for the benefit OF the conf
! inunity they must iseue clearing house
certificates until such time as New York,
Chicago and St. Louis can resume currency
In isss no such necessity was presented
| to the Omaha banks and Chicago and ~.
Louis continued to pay IN euFrsnGx, ara ana
no great difficulty IN meeting the situation
4 at that time, which, u anything, was much
! worse than the present.
! With no source, however, Of currency
I supply. and large balances tied up In their
| redemption agencies, II would De futile
| for the Omaha banks TO undertake to meet
the. currency demand which would he made
upon them. Not only would they be called
/ upon for the normal requirements Of their
own business, but they would also be re-
| quired to supply the demand which would
ordinarily be supplied tron chicago ,g, and
President Omaha Clearing House Assn.
situation in New York.
NEW YORK, oct. 27.--The feeling
among banking authorities tonight is that
united action and wise counseis have al
ready accomplished much in providing
solution for the financial problem with
| which they have been called on to deal
during the last week, and that with REM
edial plans now further perfected the
promise is strong for the uninterrupted
maintenance of financial stability. To-
day was marked by the usual Sunday
calm which gave the financial leaders an
opportunity to ease the tension OF over
wrought nerves experienced during the
last week. Most of them remained at
home throughout the day and there was
a noticeable absence of the hurried con-
ferences OF recent days.
The departure of Secretary Cortelyou for
Washington removed a conspicuous figure
from the field, but it was felt that with
President Roosevelt's strong support. as
expressed in his letter made public last
night Mr. Cortelyou's presence in WASH
ington was favorable to such further gov
ernment assistance as might be required.
In the churches many Of the sermons
were marked by references to the imam
cial situation, Rev. Donald MackRy at tls3
Church OF st. Nicholas dealing at length
with the subject, and Mgr. Lavelle also
taking similar text at st. Patrick,s
cathedral These and other sermons weTo
notable for their strong counsel toward
public calm.
Clearing House Busy.
At the clearing house there was much
evidence of activity I'm preparation for
the issuance of loan certificates. Thil,
however, was confined 10 subordinates. a.
the loan committee which is 20 pass upon
collateral offered for the certificates dl5
not hold a formal session. Another evil
dence of activity was the small knot OF
people gathered at some OF the institute
tions where runs were In prosress last
week, waiting for advantageous positions
on the opening Of business tomorrow.
The indications are that banking institu-
tions will not pay large amounts In cur
rency tomorrow. except to meet legitimate
requirement cf their clients for current
business. II has long been the practice or
trust companies and some OF the smaller
banks in meeting checks for considerable
amounts 70 draw checks upon the national
banks with which their reserves are kept
II they pursue this policy tomorrow ahd
until the end Of the present crisis 4 will
not be a departure from their usual prac-
tice. Such checks under ordinary olrouni-
stances are preferred ~ currency and n
currency is demanded In unusual amounts
It will be refused unless evidence b eiyea
that It Is required In good faith ana Tor
other purposes than boarding. TO prevent
which is the main purpose VI this step,
Cash for small Banks.
Currency will be paid on small checks as
desired and to provide funds Tor pay rolls
and other legitimate and ordinary Uses
II may be thought advisable 70 stamp
checks payable through clearing house
as was done in 1893 Tho suspension or
currency payments al that time extended
TO all the banks and also the trust compen-
les, which were then a Comparatively
small factor IN the situation Little II any
Inconvenience resulted from the phymept
By checks instead OF currency. except IA
easee where there was special noed fos