New-York tribune., 1908-01-14
TRUST COMPANIES In.
CASH RESERTE OF 25%.
Clfarinc House to 14dmit Them to
Full Membership.

TIE New York Clearing House Association at a
meeting Yesterday voted unanimously 40 admit
trr,s companies maintaining At all times . per
rert cash reserve 10 fGn membership. a PROPOSE
tion 70 admit associate members trust COM
NAMES carrying only = per reserve was laid
over for three months pending certain legislative
zction az Albany regarding trust company reserves
A resolution VAS also introduced at the meeting
and viii be acted on at the meeting OF the
association 20 amend the constitution to re
cure members 10 maintain a % per cent cash re
serve.
The amendment 10 the Clearing House constitu-
tion which Was voted upon and unanimously carried
yesterday follows:
Section % Trust companies. organized under the
members Of tbs association IN the same manner
and 70 the same extent as banks may be admitted.
ano When 50 ADMITTED shall be entitled TO ali the
rights and benefits and subject to all the conditions
shan DC entitled or subject under the provisions
OF the constitution. Trust companies. however. be
ouired TO keep cash reserve their vaults Of
not less than . per cent of their deposits fail
10 keep such reserve shall he sufficient ground
fer action under Section 20 of the constitution-
The proposed amendment on which action was
deferred for three months pending legislation at
Albany in regard TO trust company reserves, was
follows:
Trust companies NAV be admitted the priv1-
leEes OF The Clearing House as associate members
lPoh cotsehtilg 70 oe governed oE IRE CONSTITUTION
agreement 70 keep and maintain all times in
cent Of their deposits. Such associate members
shall not however be entitled vote or 10 hold
10 act redeening agents for other institutions
No hank or trust company shall hereafter be ad-
capital and surplus Of less than $4,000 Associate
members shall pay 81 .000 per the Clearing
House but shall be liable for initiation fee
Il Is not expected that there will be a general
rush Of trust companies Join the Clearing House
Association until there has been some indication
Of what the Legislature at Albany VIII do this
winter in regard tc the measures recommended
by Governor Hughes and Clark Williams. State
Superintendent Of Banks. for increasing the cash
reserves Of these institutions. but il is understood
that three or four OF the larger companies would
in all probability make such application
: canvass Of the leading trust companies a few
davs ago by q Tribune reporter revealed dis
inclination the part OF the heads OF these in
stitutfons 10 discuss the proposition cf their
terinC the Clearing House. The president Of only
one trust company announced his intention Of join
inc the association. All the others were non-con-
initial with the exception OF the president Of one
O. the old line trus. companies who said it would
be no advantage for his company 10 become
member q the Tearing House. il did no bank
Ing business and whose attitude is that Of all
the old line companies
Tie withdrawal OF the trust companies from the
Clearing House in 1903 and 1894 over the Ques-
ton ~ reserves The Clearing House Association
OF February =. 1903. voted demand pro
c-esvlve reserve" from the trust companies
de- which they were required 10 maintain cash
reserve equal 70 per cent OF their deposits on
ard after June J. 1909. This TO be increased
4 - Per cent on and after February l, 1904 and
no less than u more than Is per cent on and
after June !, 1904 All except TWO OF the twenty
F.K trust companies refused 10 accept these con
c-ous and withdrew from the association. on
A7-H = 1905 the state law requiring trust COM
rsnies To carry reserve Of al least Per cent
II cash ; per cent in bonds and per cent in
deposits with bank became effective