Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-10-29
Certificates Simply New Medium Of
Exchange in Omaha.
Ow SAG, 100000 BEHIND CHECKS
Resources Increased in Anticipation
of Shortage in Money.
OMAHA FNANC1ERs FOREsAw IT
Patrons of Banks Demanding with
drawal of Funds Get some
Cash and Remainder I'm
the Certificates.

For the FIRST time in the history OF bank
ing In Omaha financial transactions OF
all depositors were made with
checks Monday and the city was given
new currency of certified checks or clear
ing house certificates, Just as sound as the
$1,000 600 OF resources of tho Omaha banks
behind the checks, can make them t
any person feared "a run on the bank
he was disappointed. Calmness provails-
When the first days business was fin'
ished. depositors satisfied, the new medium
In circulation and the doors closed, bankers
declared the plan of the clearing house TO
be an admirable one for keeping the actual
cash in Omaha, and said they anticipates
no trouble or excitement. The demands FOR
payment of cash the first day were light
The total would not exceed by many
thousand dollars the average Monday.
The system adopted by the banks worked
satisfactorily for the FIRST day and win be
continued at least until Saturday Novem-
Der g Some few depositors who attempted
to withdraw their accounts to the last
dollar went out Of the banks carrying
little money and some certified checks,
convinced that the checks were just az
as good TO them as silver dollars, gold
pieces, or s. and $40 bills But little trouble
was experienced in explaining the situa-
ton to customers and convincing them thal
they did not need to withdraw the actual
money. For the first time hundreds dis
covered that they did not really need
metal and paper money with which to
pay bills and they decided to use the
check books moro freely.
Following the action of the Clearing
House association Sunday evening, when
banks Of Omaha decided to act in accord
with other cities and keep tho aotuni
money in the vaults to as great an extent
as possible the banks of Omaha began
issuing certified checks and clearing houst
certificates. instead OF paying out tho
money.
Smaller checks were paid in full by some
Of the banks. Others kept rigidly to the
clearing house rule not TO pay over SICK
I'm cash TO any deposition. or more than
20 per cent on any account Of $500 or less
At the savings Banks.
When the city Savings bank opened its
doors Monday morning depositors were re-
quired TO give the notice provided by law
OF sixty days before money could be with
drawn. No money was paid over the coun.
ters of the City Savings bank Monday, II
being the first time in the history OF the
institution that depositors were not paid
their accounts in full, though the bank
has always had the privilege Of requiring
notice of sixty days for withdrawing any
money.
At the commercial state banks, such as
those conducted by ]. L. Brandeis & Sons
and Hayden Bros. the clearing house rule
was adhered to and payments made pro-
portionately in cash and certified checks.
AS both the banks have large deposits in
the national banks of Omaha, the Clearing
House association issues to them the reg
ular clearing house certificates or recog-
nizes checks certified to by them.
In addition to arranging with the clear
ing house to handle checks and certificates.
| the big department stores with which the
banks are connected. accept personal checksl
! for merchandise, as well as the certificates.
These checks they take at all Departmental
In exchange for merchandise, but without
expecting to receive money for
them. The department stores. With
unlimited resources. do not need
the money any more than the deposi.
tors and deposit the checks in the banka
the amount being placed to the credit Of
the department store.
II is likely the larger retail stores win,
deposit only the checks they receive and
! keep from the barks unusually large
amounts of money which pour into their
cash registers, for the convenience Of theit|
customers.
First Find Needs OF Patrons.
Arrangements for giving depositors I'm thl
City Savings bank certified checks or clear
Ing house certificates which will be eauiva
lent to their money have not yet bess
made. President Fiack said he would hrs
find the needs Of hts customers ana thl
needs would be met Few depositors nee.
their savings and bankers believe they vii
be better on without them for a time. Blu
| it is the intention OF the savings bank b
make arrangements should eunergeneio
arise TO treat every customer fair and be
| fore the week ends the bank may be issuln
check or certificate OF some kind whlo
will be legal tender in Omaha for a time
although the bank has a perfect right un
| der the law to hold all mohey for sixt
days. or until December 2s. II the deposito
gave notice Monday that funds Wor
wanted.
The oficial abatement OF the directors
the city SAVINGS bank, who met Monda
morning before the bank opened reads
! follows:
owing to the fact that New York. ch
/ cago, ST. Louis and practically all OF a.
> other clearing houses In the United State
including Omaha, have decided to issu
{ clearing house certificates and have ID
clined to pay out currency the CITY saf
ings bank decided, that II was best TO m
qulre it's depositors to give notice on N
| withdrawal Of money on and after MOI
/ day, october 8, 1901 The directors beiiet
| that this VIII only be temporary ana tina
In few days they will be able TO adjul
matters 30 that their depositors will ha,
| clearing house funds. While the bank h
| plenty OF funds Ia other banks and dra
class high-grade securities, yet Il is deefne
I 70 the best interests OF its depositors an
! Tor the people In general that this actic
( be taken az this time.
YELLOW YARN STRONGLY DENIE
Evening PinIEIet's Tale OF Live stk,
EmuhaffcuIIy, Hanuaa.t.a