Los Angeles herald., 1907-10-28

require rements of their ia Honolulu.
business. y Nov. 8. 1s.
companies and some of the s..reet corner
In meeting checks for G.
amounts to draw checks upon
tional banks with which their
are kept. If they pursue this polio.
morrow and until the end of the pres
crisis 1t will not be a departure frol
their usual practice.
Such checks under ordinary circum-
stancer are preferred to currency and if
currency is demanded in unusual
amounts it will be refused unless evil
dence is given that it is required in good
faith and for other purposes than for
boarding, to prevent which is the main
purpose of this step. Currency will be
paid on small checks as desired and to
provide funds for pay rolls and other
legitimate and ordinary uses. 1t may be
thought advisable to stamp checks
rayable through the clearing house."
as was done in 1893. The suspension of
currency payments at that time extended
to all the banks and also to the trust COM
paries. which were then comparatively
small factor in the situation. Little If
any Inconvenience resulted from the
payment by checks instead of currency.
except in cases where there was special
need for currency.
Currency at Premium
Currency at that time went at a premi-
um of fraction of one per cent. and in
some cases even as high as one per cent.
This was due to the fact that currency
was even refused for pay rolls, for the
use Of retail shops and for other pur-
poses for which it was required. 1t is
believed the situation will not be acute
on this account, and that currency can
be paid where it is required for legiti-
mate business purposes and not for
boarding.
This system of check credit will oper-
ate in the usual manner, and there will
be no inconvenience to the man who does
not make special effort to obtain cur
rency. Checks drawn in payment of cur
rent obligations, will be received for de-
post by any bank and redeemed through
the clearing house in the usual manner,
except that clearing house balances
against the banks will be settled in clear
ing house loan certificates, instead of
currency.
A man having a bank account will have
checks put to his credit as usual and can
draw against them freely without inter-
ruption in the course of his relations with
the banks 1t is not believed now that a
dearth of currency will be such as to pre-
vent those requiring small amounts or
not having a regular bank account, from
obtaining it. 1t was found in 1888 that
while currency went to a slight premium
in certain cases. the public generally ac-
cepted the suspension of currency pay
ments with equanimity.
Runs upon banks ceased because the
object to such runs, namely, to lock up
currency, was defeated by the decision
to pay only in checks acceptable to the
clearing house.
A large force of clerks wer at the
clearing house today preparing for the
issuance of loan certificates tomorrow.
These are in 5000. $4,000 and $4,000 de-
nominations. and in the form.
This certifies that the
bank has deposited with this commission
securities in accordance with provisions
OF the meeting OF the association upon
which this certificate is issued. This GER
tificate will be received in payment Of
balances for the sum Of $1,000 from any
member Of the Clearing House assoc
tion.
ION the surrender Of this GER
by depositing bank above nar
commission will endorse the
q payment on the obligatir
bank, held by them, and
proportionate share OF
curities held thereund>
Certiflcate
This is the for
these certificas
that time IL
6Cv