The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-11-20
NEW YORK CLEARING House.
Its Transactions Run Into Trinions Of
Dollars

The total transactions Of the New York
Clearing House last year tended SepteR-
ber ~. lsiO) were almost lO7 billion dollars
The total of its transactions since II was
organized in 1853 reaches the sum Of 81
:3D ia. 2pl, S09.
Last year its transactions were about
o. per cent. of all the bank clearings OF
tn. United States. They were nearly
three times those Of Boston. Philadelphia
ST. Louis and Pittsburg combined. say.
uoody's Magazine. and nearly four time,
those Of all the rest of the country out
side Of these four cities.
In the calendar year 1909 total bank
clearings in London were ss5, SIS. g32 O00
Those Of New York were Sos. 5ss, ~, 800
The increase in olearings in London IN
1870 over I9Ds was li.5 per cent. The in
crease OF bearings at the New York Clear
ing House Was 3J-B per cent. The Lrge-t
record Of Cl.lrinEs in London in one day
was s5c7 M .coo. The largest one days
clea rings in New York We're s738. i8t. 54s
In ls53 there were fifty-seven banks In
New York city. each Of them receiving
every day checks and other items on each
Of the other iifty-sIX banks, which had to
be presented for collection. All the~.
items had To be assert I'd nj the end Of the
day and listed On separate slips. to which
Were added the items coming through tn.
mails the next morning. Then each bank
sent out porter or runner To make the
rounds Of the banking district. present
ing to each bank the items against IL and
receiving the items held by IL against his
own bank. all being recorded in a pass
book which he turned in on his return
IL was nearly an all day Job for tn. run
ner. and the time consumed in making
thu. exchanges forbade any possibility ~
daily settlements of balances. II was. CO.
s-.luently, tn" custom to make weekly
settlements. following the exchanges of
Friday morning. On that day each cash
Ter drew drafts for tn" several balances
due his bank and sent out runner TO col
lect them. at the same time giving him tn.
coin TO pay the balances due from his
bank to the others. After the settlement
there were meetings 10 adjust difference
This primitive system was not only
wasteful OF time and labor but il exposed
the banks to loss through robberies Of ~
nl,-ssensers and made possible objection
able practices by which reckless debtor
banks often took advantage of creditor
banks The need ~ reform was man.
fest. hut il was not until the summer
Of 1883 thai the officers OF thirty eight
New YORK banks met and appointed
commit go 10 devise a more simple system.
On October II represents ives of nifty
tw" Of the tifty-seven banks then IN
New York city met III the basement %
II Wall street and mad. the first ex-
changes under nh" new system. which
WAS fundamen' ally the same as that
Used to-day The clearings Of the frs
day Were ST. Bis. In. which have sine"
been "clipsad by the days clearings 81
"a single bank
Thu. original members Of the Clearing
House .tssoCia' ion paid no admission fae
Other banks were taken in Oh payment Of
first $3.50. then 81 90. and later on pay
men'> prOpoTr innad TO their capital
In 1885 tn" membership had risen TO sixty
seven. but it has been reduced nv con
soliiat ions to fif,y The Youngest hank
in IN" Clearing House in point OF mem.
b"rShp Is th" Union R~change National
Of lRD Flfth avenue. which was admit 81
al { h" last annual meeting.
In addition 70 the fifty member banks
who thus eSpeditioNsly settle the differ
ence- among them there are twenty-seven
banks and trust companies not belonging
to the association which clear througi
some member. Ninety per cent Of all III"
exchanges ~ he city are made thTouet
the Clearing House. The rules regulai
ing the actions both of members and nor-
members ar" very rigorous and INCLUDE
tn" requirement OF weekly statements II
condition OF each one. which are pub
lish-d AT noon on SATURDAY. with sum
mary ~ the average condition OF all The
banks combined.
The services ~ the Clearing House ar"
not confined 20 the efYecting Of exchange
and settling Of balances. At critical
times. as in the panic Of 1907. the Clearing
House - able 'o act IA n sort OF c"ntra
10. all