New-York tribune., 1907-10-27

the ting or the clearing HOUSE CoAlll'l'tSO
yesterday morning the subject was fully dis
cussed, and finally Mr.. Morgan and Mr.. Still
man both withdrew their opposition, the strong
est force against the project. and when the reso-
luton for issuing certificates came up at the
full meeting OF the association the vote In faVor
OF II unanimous.
II WAS announced from ST. Louis and Pits
burg last night that the clearing houses OF those
cities also would issue clearing house loan GER
tifcates.
member Of the Clearing House committee
said last night that Clearing House certificates
would be issued by the clearing houses OF Bos-
ton. Philadelphia Baltimore and Pittsburg
r,rohalJv on Monday Asked if they were to
take this action at the request of the New York
Clearing House he replied: Certainly not. 1t
would have been an impertinence on the part
of our association 70 have made such re-
quest They are taking this action on their own
initiative and because they believe, as we do'
that IT is the best thing TO do TO ease the sit
ustion in the present money stringency.'
The resolution directing the issuance OF GER
tidcates which was adopted al yesterdays meet
ing of the local Clearing House Association was
offered by William A. Nash president Of the
Corn Exchange Bank. and seconded by j.
Edward Simmons president Of the Fourth Ma
tionaI Bank. The resolution named as the loan
committee which will have IN charge the work
of passing on the collateral offered by banks
desiring to use certificates, and the issuance TO
them Of such certificates James G. Cannon
vice-president of the Fourth National Bank;
Walter E Frew. Ylce-president OF the Corn
Exchange Bank: Albert H. Wiggin vice-presi-
dent Of the Chase National Bank; Gates w Nc
C;arrsb president of the Mechanics National
Bank and H. j. Dawson, vice-presldent OF IIle
First National Bank. The committee spent the
afternoon at the Clearing House with Alexander
Gilbert. president of the Clearing House Asso-
,iatior and other officers working In co-opera-
ton with them
CLEARING HOUSE OPEN TO-DAY.
The Clearing House will be open all day to-
saw for the purpose OF allowing the members
Of ,he loan committee to meet representatives
IF various hanks in regard to details OF the issue
Of certificates.
7,5e resolution authorizing the employment Oh
clearing House certificates became operative llii
-oe6iateIv on its adoption. When oahk sa'is
Hes the loan committee that Clearing House Ger
,facates are needed, and the request is granted
,he bank will be required to deposit hfst ciasS
hills receivable or other good collateral and VIII
race41a - per cent OF the ascertained market
yalue of such collateral in Clearing House GER
,iAcstes These certificates will be accepted III
all settlements Of debit balances against liio
hank at the Clearing House, but will not De
available for any other use
HOW CERTIFICATES WORK.
such certificates. as is explained by James G'
Cannon In his work on Clearing Houses are
not even seen by the business community anu
do not pass from bank TO bank, except IN pay
r,ent of Clearing House balances. the great
value of Clearing House loan certificates con-
sists in the fact that they take the place OF
money in settlements at the Clearing House.
IF ,vTorgc
leaving the amount TO be used by the banks III
making loans and discounts and in meeting
other obligations The volume of currency TO
all ;ntents and purposes, is expanded by TINS
means TO the full amount Of certificates issued
clearing House certificates was said in
The Tribune yesterday. were first resorted to
by the New York Clearing House Association
in 1863 when the aggregate amount issued was
ST}75ooO. Subsequent issues were made OF
S22.585,OO0 in 1851: s11471.O0o, in 1862; Sill
T2SOOO in 1854: s26 6565.0O0. in 1873, in which
wear certificates were issued also by the clear
ing houses of Boston, Philadelphia, Baltimore
Cincinnati. ST Louis and New Orleans: S16,-
$4,000 in 1890 and $41. 10000 in 1898 Most
oy these issues bore interest of 6 per cent
year. bIt = per cent was charged on two occa-
sions The average time elapsing between the
issuance Of certificates and the cancellation 0f
the last of an issue has been about three
months
In the past, the weekly statement Of condi-
ton of the associated banks. which is made
public every Saturday, has not been issued be-
tween the time OF the issuance of loan certif-
Gates and the cancellation Of the last Of the
issue. and # is understood that the precedent
viii be followed on the present occasion.
GOLD IMPORTATION
The National City Bank yesterday announced
that It had arranged for the importation of
S3500000 gold. and later IN the day brought
the figure up to 100000. most Of this gold
having been obtained from South Africa and
the Continent Of Europe. with small supply
from London. Another local bank is under
stood to have obtained S1Oc0OOO gold, and
HedeIbach. Ickelheimer & Co. announced that
they had engaged in London 81, 100000 in gold
for shipment to this country Wednesday
other importations probable within the next
few days, which will bring the total import
movement up to very large proportions. The
gold which the National City Bank is bringing
in obtained on the banks own resources
and without any assistance from the govern
Enent It does not include any part of the
s5ooo.ooo due in London tomorrow from South
Africa
The large foreign credits created in favor OF
the Cnited States by the export movement Of the
crops and 10 some extent of securities which
have been taken over at the present bargain
prices will enable this country TO import gold
in considerable amounts without resorting to tho
sale OF finance bills. The disposition of Euro
pean banks TO curtain the acceptance Of American
finance bills during the last few months ts ba,,-
ing at least one good efect-that there are onlv
small obligations of that kind to be covered az
present, so that the credits established bv tbe
movement Of crops can be met only hv shInnna,+