The Cairo bulletin., 1907-11-02
CLEARING HOUSE
BY CAIRO BANKS
IN LINE WITH SIMILAR iNSTlTU-
TlONS IN ALL BIG CITIES
OF THE COUNTRY.
ALL BANKS COMBINED
10 Issue Certificates For Circulation
IN Lieu Of Currency--9usiness
Men viii Receive
Them at Par,

that 1t would be wise 10 follow IN
example OF the banks IN other cities
In order TO protect themselves an,
the business interests Of the city gen
craliy, They found that the action
"A the bankers IN what are called TIL,
reserve cities" In adopting the clear
ling house certificate system rendered
Jig inadvisable to pay out currency OF
lchecks of all sorts and in any sums
Ifos ii would be impossible to replen
ish the supply when it had been ex
lhausted
Representatives of the banks in the
lc.ty met Yesterday and formed the
Cairo Clearing House and it was
agreed that clearing house certificates
shah be issued, in denominations OF
1871 ST. IS and $40. which are TO be
backed by the combined credit OF all
the banks Of the city and secured BIZ
unreasonable collateral security de-
posted By each Of the banks with the
clearing horse officials the total
omcunt of the certificates issued not
70 exceed - per cent Of the value Of
the collateral thus deposited.
In order to check against savings
accounts, depositors will be required
to give the ninety-day notice provided
for by the rules OF the banks.
Chas. Feuchter, Jr was chosen
manager of the clearing house, and
committee was chosen to have gen
eral supervision of the institution
composed as follows: IT, S. candee,
vice president Of the First Bank and
Trust company; T. A. Smith, presi-
dent of the Cairo National bank;
Charles Feuchter, Jr., vice president
CT the Alexander County National
bank. and Charles O. Patier. vice
president of the Alexander County
Savings bank. H. S. Candee. of the
First Bank and Trust company is
chairman of the Clearing House com
mittee.
The certificates to be issued are de-
signed to take the place of currency
in the ordinary commercial transac-
tons of the community and viii be
paid out at the banks in lieu of cash.
They will be accepted at par value
by all the business men Of Cairo who
the situation and will in
nc way embarrass anyone.
Establishments which have always
done their business with checks will
feel little or no effect from this ar
and there is no reason
why it should cause disturbance any
Cairo bankers are merly fall
ing in line with those OF the rest al
the country and are guarding the bust
ness interests of the city from any
evil effect of this actien elsewhere.
How il Works.
1t Is expected that some trouble vii
be- had by establishments that have
big pay rolls How the plan works in
Chicago is told in the Tribune of yes
terday as follows:
In nest of the banks the question
II meeting the demands OF big manu-
lecturers and other employers for
cash with which to ray their en-
lioyes was paramount as it was the
last day OF the month In order to
Z nserve the supply Of cash on hand (
he banks met each individual request I
N its merits. Employers who thought 4
( possible to pay In checks were in I
luccd to make that dispc sition Of the
while Others to whom the
ash was Indispensable. as in the
'ase Of factories. received the cur
'cncy
An interesting Illustration Of the
way 81 which large concerns are soy
NC the ray roll problem fer them
ielvcs was furnished by the Common
rea'ta Ellison -~muanv. Prrfilent
asull devised q priyata Issue # cur
'oncy" IN denominations n IS $40
Nd $40 with which he raid III EN-
.iovcs thoir monthly sl'a-ies in part
(. for eya-n-'e Al c--'-' 49," wae z
ereiye 800 he received 81 IN cash
hree CHECKS for $50 each on the Com
nonwealth Ellison company one for
10 and two for 60 each.e With. tisss
,hecks the employee can pay rent, gro
ers' and other bills. while the cash Is
,usbanded for minor needs.
At the clearing house figures were |
riven out showing that the volume OF
business has Increased normally b.
.pite OF the money stringency. The
ctaI elearings fer October were 81
Gs 6G7 9f7. as compared with $1,000.
81 400 in Octct or. 1896. Since last
.sturday TIE Increase has been s17.
.Ol .d1e
United States Subtreasurer William
said meme of the banFs
lad withdrawn any Of the s. 900 800
r gold that stands 20 their credit IN
be- subtreasury. Gold is being i'm
orted in order that il may not be-
ecessary to draw upon this reserve.
.bout s300ee0 a day is being paid
II Of the treasury into business
hanneis in the cashing Of postal
money orders"
Advice 70 Small Depositors.
Ia an article Ia me Union Labor
.dVocate putHshed Yesterday. Wori
lg men and women who have small
eposits IN the local banks are urged
D remain calm and cooperate Vith
be bankers in the present emergency. I
he article c0ncluces.
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