The morning journal-courier., 1908-01-10
READMIY TRUST cos.
Clearing House Expected to Act
 Favorably on the Question.
TURNED OUT 4 YEARS AGO
Plan Demands 25 Per Cent. Reserve for Full Members and 15 for
 Associates.

New York, Jan. 9.-A spec!al meet ing of the New York Clearing House association will be held next Monday to consider the admittance of the trust companies to membership. It was learned this afternoon that the special committee which has been considering the subject for several weeks past will ask the association >o vote in favor of admitting to full membership those trust companies that are willing to carry a flat 25 per cent. reserve on all l deposits, and to admit as associate members those companies that are willing to carry cash reserve Of only 15 per cent,
 This action by the Clearing House will be the most important taken since the adoption of the original cash re- serve law, which led to the withdrawal of virtually all the trust companie s that enjoyed Clearing House privileges four years ago Although there have been numerous plans proposed before for admitting trust companies to Clearing House membership, the banks have never been asked to vote on the advisability of admitting those insti- tutions to basis of membership which would give them the full priv. ileges of the Clearing House, with the right to vote at all meetings.
 This plan was decided upon by the Clearing House officers after much d!s- cussion with the various trust compan. les that have been asked to be admit ted to the privileges of the Clearing House on some reasonable basis.
 This action, if finally adopted by the Clearing House association, will place the trust companies on par with the banks, and will enable the banks and the trust companies to work together on a much better basis than they evel have before While the action of the association cannot be foretold in ad. vance, the opinion prevailed in banking circles to-day that the new scheme vii 30 through, and that within a few weeks most of the large trust com panies will be fullnedged members oI
 the Clearing House.
 There have been applications made
 the large trust companies to the Clear
 ing House committee. and 1t is believed
 that nearly all the larger institution! will go In as full hedged members with the obligation to maintain tn, hat tc A
 national banks, If the plan is adopte' as outlined this afternoon the New
 York trust companies will bear tn,
 same relation to the Clearing Hous'
 association as Is maintained by tn
 Chicago trust companies to the Clear . ing House banks of that city.
 , The new arrangement will effective
 ly place the trust companies unde- Clearing House supervision, and affor' them such protection as is provided fo
 all the Clearing House banks in pan icky times. This plan is the direct re r suit of the financial crisis of last Oc , tober. and Is likely to have a far f reaching influence.
 , A greit deal of interest was mani , fested this afternoon In the attitude 0 , the New York Banking department to ward the new arrangement. It t , known that Superintendent Williams , has long been an earnest advocate o f large cash reserve for trust com f panies, and the feeling prevailed il f some quarters that the adoption o I this plan by the Clearing House migh ' lead him to modify his requirement. fo . a weekly statement by trust companie s of this city The move taken to-da. . was regarded on all sides as the mos . important that has developed in bank l ing affairs since the panic disturb ance.