Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1907-10-29
CONSERVATIVE
STEP BY BANKS

step BY BANKS |
IN COMMON WITH OTHER FINAN-
CiAL cENTERS, FARGO BANKS
WILL ISSUE CLEARING HOUSE
CERTIFICATES 49, DOUBLE Sc
cURiTlEs.
Fargo, N. D., Oct. 2S.-Owing to
the fact that in New York there has
been for some time past financial
stringency which has forced down
the price of stocks and has caused
some trouble with some of the finan-
cial institutions in that city, the New
York banks have gone on what is
known as clearing house basis and
are not shipping currency to any
points in the country. The banks in
Chicago and other eastern financial
centers have gone on the same basis,
and last night the banks of Fargo.
Moorhead, Grand Forks and all over
the northwest were notified that the
banks in Minneapolis, St. Paul and
Duluth had taken similar action and
would neither ship out currency to
the country nor pay out any money
over the counter except in small
amounts.
St. Paul, Minneapolis and Duluth
get their currency to move the crops
largely from Chicago and New York,
and the fact that they can no longer
get currency from the east puts them
in a position where they cannot ship
out currency or pay it out until the
situation eases up.
The banking institutions of Fargo
and Moorhead tomorrow morning
will go upon a clearing house basis.
Customers can deposit their funds,
check against their accounts, buy
eastern exchange, and do all business
in the regular way, except as to get
ting actual currency. Currency will
only be paid out in small amounts;
larger amounts where currency is de-
sired will be paid in clearing house
certificates. These certificates are
issued by the combined banks of Far
go and Moorhead. Each banking in
stitution will name one man to act
as a member of the finance commit
tee. Every dollars worth of clearing
house certificates issued to any bank
ing institution, the institution will
place with the trustee, 81 worth Of
their best paper as collateral. This
paper is to be examined and passed
upon and approved by the full fin
ance committee before being depos-
tied with the trustee. The payment
of every dollars worth of clearing
house certificates is guaranteed to
the people by the combined banking
institutions of both cities. These GER
tificates can be used at stores the
same as money and the banks will
receive them ON deposit the same as
| cash.
| L. B. Hanna of Fargo, has been
! elected by the banks as trustee and
| all of the collateral to secure certifi-
Gates and will be deposited in trust
with him. The banks of the northwest
were never in better shape to meet an
emergency of this kind than now, as
practically none of them have any
borrowed money and on the contrary
have large amounts loaned against
Il grain in Minneapolis and Duluth. The
only thing is to get the actual cur
rency. There is no cause or reason
for any alarm, as it is believed tina
this condition will only exist for {
short time andthen matters will RICH
themselves. The elevator companies
cannot get currency and this is hav
ing a depressing effect upon grail
and cattle and it, would seem wis
to both debtors and creditor
throughout the state that littl
moderation should be used in th'
matter of pushing collections unit
such time as conditions and price
become normal again.
First National Bank of Fargo.
Merchants National Bank of Fargo
The Fargo National Bank of Fargo
The Commercial Bank of Fargo.
The Northern Trust Co. of Fargo
. The Northwestern Mutual Saving
& Loan Assn. of Fargo: r. ..... ~
The First National Bank of Mool
head. s0ls4 +5a .+t..%.'
, The Moorhead National Bank {
Moorhead. IT,.
The First State Bank of Moorheat