The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-11-12
COLUMBIA BANKS.
OFFER RELIEF
FAVE DECIDED TO ISSUE $780,
900 IN LOCAL CURRENCY.
Each Bank Has Put Up in 1ronclad
Collateral S15c for Every SlOO
of Scrip Which Will be
Issued.

The State.
The Columbia banking Institutions
have decided to issue clearing house
certificates in order to relieve the I'm
ancial depressions. This action, taken
Yesterday afternoon at a meeting OF
the clearing house association: IS
largely in response to resolutions
passed recently at a meeting Of bank
ers from other parts OF the state.
The compliance Of the Columbia
banks mean that this city IS becoming
more and 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 bv 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 bank note, although
not so handsomely engraved nor
printed upon such substantial paper,
for it 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
/, 1908.
The total amount issued IS $780,
900, representing 20 per cent. OF the
aggregate capitalization. of the bank
inc institutions Of the city. Each
bank will be- permitted to draw Its
pro rata part and it is probable that
all of the temporary currency will be
put into circulation at once.
The conditions which call for the
issuing Of this currency are a1omal-
GUS The banks Of Columbia nave
more cash money than they have ever
had. but it has not been put into cir
eulation. The money has been kept
tight on account of the furry ii Wall
street. but it is believed that condl-
tions there are getting easier and
that the south will soon be able to
take long. deep breath. 1t Is the
merchant who has been suffering, tor
the banks have been afraid to ad-
vance money on cotton, and the far
mer has been disinclined to sell cot
ton at the prevailing prices. There
fore the 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 cotton and good yield in
South Carolina.
Columbia Clearing House Association
Columbia, S. c., Nov. 9, 1907.
In view of the action taken by the
New York clearing house, and sabse-
quently adopted by the clearing hous-
es of Philadelphia, Chicago, Balti-
more, St. Louis, New Orleans, Gin
ein1ati, Nashville, Atlanta, Louis
vile. Birmineham,' Memphis, Mont
gomery, 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 assocla-
ton:
''1. That in order to facilitate the
movement Of the cotton crop and aid
the farmers in the proper marketing
Of the same, clearing house certlfi-
Gates of this association be issued, re-
deemable in money of the United
States on or before March l, 1908.
80. That until further notice col
lections and bank balances be settled
in exchange or clearing house certl-
fcates.
''3. That such certificates be recelv-
ed on deposit or in payment of eol-
lections and debts due any banks IN
the clearing house association.
81. That checks drawn on the mem
bers Of this association be paid
through the Columbia clearing house,
and correspondents and customers be