The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1910-05-13

GERS ana merchants VINO were compeh-
: FED to avail themselves of clearing
.ahouse certificates during the panic Of
f11907, has just been made public by
4the National Monetary Commission. It
4is entitled oClearing Houses and Isl
fwritten by Mr.. Games G. Cannon, vice
xpresident Of the Fourth National Bank
}of New York. and chairman Of the
committee on finance OF the New York
itchamber of Commerce. The work is a
\ sxcontinuation of one published by Mr..
3annon some ten years ago, and con-
Nains much new material In regard to
sdlearing houses; and it derives special
Interest from the careful summary of
I Vie devices adopted during the panic
Af 1907 to tide over the deficiencies In
bur currency system. Mr. Cannon be-
fxlns by some careful and interesting
| |silehnitions of clearing houses, ex.
II 3hange, bills. drafts, checks. and other
ASss used In clearings. Some of
fiese definitions represent conclusions
/ Fhrashed out in court, as well as in
Banking practice, and have a distinct
I kpractical value. When the object Of
6clearing houses is taken up. Mr.. Can
knon presents some facts which are
Nikely to be a revelation even to many
atractlcal bankers. He declared that
8he tendency has been marked, es-
\ becially In recent years, to include
4githin the legitimate field of clearing
houses all questions affecting the mu
s9ual welfare Of the banks and the com
hunity as a whole.
The bankers west OF the Mississippi
liver have given to the country the
sJabst striking examples Of the possi-
alities of clearing houses exercising
srious special functions, while the
eat associations OF the east, and es-
lAcially that Of New York. have ex-
knplifled the utility and value of
Fearing house loan certificates. Among
aer functions OF the clearing houses
lie the granting of loans to the gov
tnment; mutual assistance Of mem
4s; fixing uniform rates Of interest
~ deposits; and several cases of
ilreement of this sort in the west are
Rorded, where union among banks
e information regarding paper out
kidding among the banks, must and
receive The attention It deserves.
Ii Is significant OF the widening
J pe of clearinghouse supervision
!. II usefulness that several associa-
save within the past few years,
l. giving careful consideration to
t subject. appointed special bank
i Nniners. assisted where necessary
e rained experts under rigid regu
y n and ready to go to work at a
ent's notice. The Clearing House
at ciation Of Chicago was the pioneer
Dn he establishment of an independ
We system Of examinations in this
ed Eitry. It's system was inaugurated
IN June /. 1906. with results that have
he than fulfilled expectations. The
he Iago examiner operates under the
of kwing conditions. The examina-
extend 70 all the associated
IS of Chicago and 10 all non-mem.
institutions The work Is con-
is I'D with the aid of five regular
In Itants. each fitted by experience TO
ess. bughly do that part Of the work
4 or lned TO him. The examinations in-
besides a veriflcation of the
the and liabilities Of each bank. so
'hite Is Is possible. an investigation
reat he workings Of every department
and IRE made as thorough as Is prac
ainst le. After each examination the
lner prepares a detailed report
pro- plicate. describing the banks
DO bonds, Investments, and other
I the mentioning specially all loans,
direct or indirect, to officers.
ident brs. OF employees or to corpora
Is the which they may be interested
sspeet kport alse contains a description
people Editions found in every depart
sends 4 Qne OF these reports Is fled In
IN bill Elts of the clearing house, In the
erman Of the examiner, and the other
le bill Ided 10 the examined banks
ote on int for the use of It's directors
a test hiyidual directors are then noti-
rsham, at the examination has been
ument, nd that copy of the examin-
nse to bort has been handed TO the
,ialists. trieted the eut-throat eompetl-
,per re. lich in other cases has led to
Gems to knted payments OF interest on
distinct Id active deposit accounts, Pro
AS be Of the community from the
or the bf bad banking Is one Of the
painful httained. according to Mr., Can
resident the significant statement Is
ad bill" Iat eas money rates decrease
In bad debts must be brought
hlmum. and the question of a
hgency. which shall dissent
for their use. In this way
y hector is given an opportunity