The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-11-12
COLUMBIA BANKS
OFFER RELIEF
HAVE DECIDED TO ISSUE $780,
900 IN LOCAL CURRENCY.
Each Bank Has Put Up in Ironclad
Collateral $3.50 for Every $10O
of Scrip Which Will be
Issued.
The State.

l. Nc Cldlc
The Columbia banking Institutions
have decided to issue clearing house
certificates in order to relieve the fin
ancial dcprcsSionS. This action, taken
yesterday afternoon at a meeting Of
the clearing house association, is
largely in response 60 resolutions
passed recently at meeting of bank
erS from other parts Of the state. D.
The compliance Of the Columbia
banks mean that this city is becoming
more aad more The financial center
of the state. For, within few hours
after the action Of the trustees of
the clearing house association, there
were thousands Of dollars, represent
ed by the certificates, being express
ed to. other cities in the state where
:Columbia money will be as good as
gold.
These certificates are in form some
what similar to Il bank note, although
not SO handsomely engraved nor
printed upon such substantial paper,
for il is believed that this temporary
currency will be called in within six
weeks. although the limit named on
the face of the certificates is March
l, 1905.
The total amount issued is $240,-
600, representing 20 per cent. of the
aggregate capitalization. of the bank
ing institutions Of the city. Each
bank will be permitted to draw its
pro rata part and il is probable that
all Of the temporary currency will be
put into circula' III at once.
The conditio. 'ich call for the
issuing of this T., sncy are aAomal-
Gus. The banks of Columbia nave
more cash money than they have ever
had. but il has not been put into cir
culation. The money has been kept
tight on account of the furry il Wall
street. but it is believed that condi-
tionS there are getting easier and
that The south will soon be able TO
take Il LONG. deep breath. It is the
merchant who has been suffering, for
the banks have been afraid td adj
vance money on cotton, and the far
mcr has hccn disinclincd to sell cot
ton at the prcvailin" prices. There
fore thc merchant has suffered more
than has any one else, as purchases
of stocks for THIS season were very
heavy on account Of anticipated high
prices of cottoA and good yield in
South Carolina.
Columbia Clearing House Association
Y Columbia, S. c., Nov. 9, 1907.
In view Of the action taken by the
New York clearing house, and subse-
qucntly adopted by the clearing hous-
cs Of Philadelphia, Chicago, Balti-
more, st. Louis. New Orleans, Gin
einaati, Nashville, Atlanta, Louis
vile. BIRMINGHAM, Memphis, Mont
gomcry, Mobile, Augusta. Savannah
and many other principal cities,
throughout the country, restricting
:, the shipment Of currency, and is
) suing clearing house certificates; and
in response to the request Of the
;, bankers of our state expressed at a
meeting held in Columbia, S. c., on
November 6. 1907, be it resolved by
the Columbia Clearing House associa-
ton:
"l. That in order to facilitate the
movement Of the cotton crop and aid
the farmers in The proper marketing
Of the same, clearing house ccrtif-
Gates Of this association be issued, re-
decmablc in money Of the United
States on or before March /, 1908.
"2. That until further notice col
: lccticns and bank balances be settled
il exchange or clearing house cert-
ficatcs.
"3. That such certificates be rcceiv-
ed on deposit or in payment of col
lections and debts due any banks in
the clearing house association.
"4 That checks drawn on the mem
bcrs Of this association be paid
through the Columbia clearing house,
and correspondents and customers be