The Norfolk weekly news-journal. (Norfolk, Neb.) 1900-19??, 1907-11-01
NORFOLK BANKS ARE SAFE
TAKE PRECAUTIONS TO PROTECT
THEIR CUSTOMERS.
WILL ISSUE CASHIERS CHECKS

Until the Financial Stringency Is Set
tied in the East, Norfolk Banks
Adopt Measures to Save Their Gus
toners Trouble or Annoyance.
Purely as a precautionary measure,
in view of the action taken by Chi
cago. Omaha and Sioux City and prac
tically ell other clearing houses in
the United States, which have decided
to issue clearing house certificates
through which clearing house balances
will be settled and have declined to
ship currency or gold, Norfolk banks
have decided to adopt practically the
same rule, and will issue cashiers
checks. which will circulate as freely
as currency and Will be accepted for
deposit by all the banks.
This action taken by Norfolk banks
will not interfere with the ordinary
course Of business. because checks
can be given in payment of bills the
same as heretofore, and the banks will
issue cashiers checks in such amounts
as the customer may desire.
1t Is not believed that 1t will be
necessary to continue this plan more
than week or two in Norfolk and
it is only done now to protect the in
terest of customers whose faith in
the banks and in their ability to han
die the situation will cause business
to quickly adapt itself to the new sys-
TEN.
The banks of Norfolk carry balances
in Chicago, Omaha and Sioux City and
they send their drafts for cattle, hogs
and grain t2 the banks in those cities.
1t Is that system which gives the Nor
folk banks credit in other cities
To pay for this produce the country
bank looks to the Norfolk banks for
its currency and the Norfolk bank in
turn locks to the bank in Chicago
Omaha and Sioux City fer it's curren-
cy to supply this demand. When the
Chicago, Omaha and Sioux City banks
no longer furnish currency the Norfolk
banks could not be expected to do so.
The local banks decided that begin
ming with the opening of business
Monday morning certified checks or
drafts would be issued to cover the
balances between banks and cash will
be paid only in nominal amounts.
Any depositor may draw his bal
: ances but will be asked to take pay
ment either in eastern exchange or in
cashiers checks.
The official statement of the plan
adopted by the Norfolk banks, as CIV
en- to The News by officials of the
banks. is as follows:
Following the action of the Associat-
ed Banks of New York last Friday in
deciding to issue clearing house GER
tificates for balances due them in
clearing house settlements and their
decision to pay no currency. the Asso-
ciated Banks of Chicago found them
selves obliged to adopt the same course
and in consequence all banks in f.
nancial centers, such as Minneapolis,
! st. Paul, Sioux City. Omaha, Lincoln
g and Fremont have been compelled to
a like course.
The relations of the Norfolk banks
with New York are not extensive and
are mainly confined to an exchange
- business. Their chief correspon-
dents are in Chicago, Omaha and Sioux
City. and if the disturbance had been
confined to New York, Norfolk would
only have had a casual interest in the
! matter, but the action of the Chicago,
Omaha and Sioux City banks, from
, whom the currency for the movements
l. of grain and cattle is obtained, in re-
i fusing, temporarily, to pay more cur
- rency against deposits, has made it
necessary for all banks in the terri.
tory tributary to those cities to take
similar position, This action on the
part of the Norfolk banks is taken to
prevent any serious disturbance and
to conserve the situation. Currency
, will be paid in small amounts only,
) but cashiers checks will be issued
4 against deposits in denominations as
may be required, which will be accept
. ed for all purposes by all banks and
'. merchants, the same as currency.
The Norfolk banks regret the action
l. of the eastern banks, as our local
banks were never sounder or in better
/ financial condition, but they cannot
n standing alone, supply the currency
d necessary to move the crops and live
e stock in its trade territory.
Norfolk National Bank,
Citizens National Bank,
Nebraska National Bank.
n This does not mean that there is q
IS question of solvency connected with
d any Norfolk bank, as at no time in
5, the history Of Norfolk has her finan
i cia institutions been in as good con
4 dition as at present. The balances
8 carried by Norfolk banks in reserve
r city banks are probably larger thar
e ever before, and there would be nj
IS necessity for the new rule were it no
II for the action of their correspondents
y in other cities, which, in order to pro
tect themselves during the stringency
, of the money market in the east, have
J, refused to ship currency to loca
,r banks.