The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-10-28
WESTERN BANKERS
FOLLOW EXAMPLE
SET 1Y NEW WORKERS IN Issu.
ANcE or CERTIFICATES.
BY THE CLEARING HOUSES.
Savings Banks Of Chicago, Cleveland
and indianapolis Enforce the Rule
Requiring 80 Days Notice
Of Withdrawals.


Chicago, Oct. 2S.--The Chicago
Clearing House association has dccia-
ed to issue clearing house certificates.
Chicago savings banks will require
from their depositors the time notice
provided for in connection with the
withdrawal of such accounts.
Cleveland, Oct. 2S.--The Cleveland
Clearing House association after a
meeting Saturday afternoon announc-
ed that it had provided for the issu-
ance of clearing house certificates.
Representatives of the savings banks
and trust companies decided that with
the commencement of business to-day
they would require go days notice on
all savings Withdrawals exceeding $50.
Indianapolis. Oct. 2S.--Although ac
tion was taken late Saturday night by
the Indianapolis clearing house to pro-
tect depositors by issuing clearing
house certificates and by requiring 30
to so days notice before paying say.
ings depositors, the Indianapolis
banks are said to be in strong con-
dition
Milwaukee, Oct 2S.-The Milwau-
kee Clearing House association has
decided to issue clearing house certifi-
Gates and to require 30 days notice
from depositors desiring TO withdraw
savings deposits.
st. Paul, Oct. 2S--Bankers of St.
Paul, Minneapolis and Duluth ON Sun
day agreed to discontinue the payment
OF money on checks, certificates of de-
posit or drafts, except for small sums,
and that for present no money
should be furnished to bank cores.
pondents.
1t was agreed that the banks should
certify checks on balances in their
hands, payable through the clearing
houses only. Savings banks and trust
companies will require the 60 and 80
day notice.
st. Louis, Oct. 2S.--Confidence that
Saturday nights action, involving the
issuance Of clearing house certificates,
would hold financial affairs in check
until complete REIMBURSEMENT could
be made, was the prevailing sentiment
Sunday among the leading bankers of
St. Louis.
New York, Oct. 2S.-The feeling
among banking authorities is that uni
ted action and wise counsels have al
ready accomplished much In providing
solution for the nriancial problem
with which they have been called on
to deal during the past week, and that
with remedial plans now further per-
fected the promise is strong for the
maintenance of financial stability.
Sunday was marked by the usual Sab
bath calm.
AT the clearing house there was
much evidence of activity in prepara.
tions for the issuance of loan certif.
Gates. This, however, was confln-
ed to the subordinates, as the
loan committee which is to pass
upon collateral as SECURITY for
the certificates did not hold session.
Another evidence of activity was the
small knot of people gathered at some
of the institutions where runs were
In progress last week, waiting for
advantageous positions ON the opening
of business to-day.
Banking institutions will not pay
out large amounts In currency to-
day, except to meet legitimate require
ment of their clients for current busi-
ness. 1t has long been the practice of
trust :. companies and some of the
smaller banks In meeting checks for
considerable amounts to draw checks
upon the national banks with which
their reserves are kept II they pur.
sue this policy until the end of the
present crisis 1t will not be depart
ure from their usual practice. Such
checks under ordinary circumstances
are preferred to currency, and II cur
rency Is demanded in unusual amounts
1t will be refused unless evidence is
given that 1t is required In good faith.
Currency will be paid on small
checks, where desired, and to provide
funds for pay rolls and other ordinary
uses. 1t may be thought advisable to
stamp checks payable through clear
ing house." as was done In 1893 The
suspension of currency payments at
that time extended to all the banks
and also to the trust companies, which
We're then a small factor In the situa-
tion. Little ioconvenience resulted
from the payment of checks instead
of currency, except In cases where
there was special need for currency.
Currency at that time went to a pre-
MUM of fraction of per cent. and
In some cases even as high as a full
per cent This was due to the fact
that currency was refused even for
pay rolls, for the use OF retail shops
and for other purposes for which 1t is
required.
1t is believed that the situation will
not be so acute on this occasion and
that currency can be paid where 1t Is
required for legitimate business pur.
poses, and not for boarding. This
system of check credit will operate in
the usual manner and there will be no
inconvenience to the man who does
not make special effort to obtain cur.
rency. Checks drawn In payment OF
current obligations will be received
for deposit by any bank and redeemed
through the clearing house In the
usual manner, except that clearing
house balances against the banks will
be settled In clearing house loan Ger.
tificates instead OF currency
II was found In 1908 that while cur
rency went TO a slight premium In
certain cases. the public generally ac.
cepted the suspension of currency pay.
ments with equanimity. Runs upon
banks ceased, because the object OF
such runs, namely to lock up currency,
was defeated by the decision to pay
only In checks acceptable to the clear.
ing house