New-York tribune., 1911-03-24
MAY ADMIT TRUST Cos.
Clearing House Association to
Consider Proposition.
WAIVE Is PER CENT CLAUSE
Would Establish System of Su-
pervision Over All Bank
ing Concerns.

,,,ther movement for bringing the trust
-or,,anies into the Clearing House Associa-
"a, has been started. induced primarily by
-, Caruegie Trust Company failure, the
sor,ionueuts following which have demon
s.-sted the extreme desirability of the estab-
,,a,-,sn, Of a system OF supervision which
hal cover both the banks and the trust
-o,,nanies. thus embracing the entire local
RANKING field. \ special meeting Of the
GEARING House Association is expected
"a he called within few DAYS 10 consider
g nropoSition for admitting tho trust COM
,snies 70 what are described as 'prac-
,i-a,lv full Clearing House privileges on the
b,sis OF the T. per cent cash reserve which
go present state law chliges them 10
-,sintaiu. tie stipulation OF a - per cent
-ossrve. made by tho Clearing House in
,aoS being waived
Tho concession regarding tho percentage
Of reserve go hc required from trust com
,.ries Is understood 20 bo favored by an
i-pcrtant element in the Clearing House
Association. among ITS supporters being
william \ Nash. chairman Of the board
n. ,hc Corn Exchange Bank. who for
wears has boen working for cooperation
,eiseen the banks and the trust com
ssnics but 81 VIII be opposed by many
~ +re members of the ASSOCIATION. and Il
,s b. m means assured that tho plan will
hs sdorted The attitude OF the trust
-,r7rsrlee. a. rule. is one OF receptive
-ss. hut not Of enthusiasm They rccos-
NJ. flo value 10 tho general banking
situation oc the bringing Of all OF the dnan-
~is, institutions or the city into one sssO-
cis and. with the exception OF certain
ID line companies which have never had
any relations with tho Clearing House, all
o. them would probably DC sad TO become
members o. the Clearing House Assocls-
ION. provided they should be invited 20 take
FlI membership although maintaining only
-As = per cent reserve.
= the projected Invitation 20 the trust
ronpzn.es shell be voted by the Clearing
ff.vse banks and shall be accepted by the
--rst companies. a system OF supervision
ssnls- 10 taat n force in ChicaSo and
otre- Western banking centres VII he
made operative. II is said. a bank exam
ne being engaged at high salary, who
sAau. with ? staff o. expert assistants,
male frequent ard searching cNamina
-.ors O. the various institutions
Pro- 20 April 1913, practically az OF tho
.-.s- ccmrsnies made their clcarances
through member banks. In February Of
that year the Clearing House Association
adopted rule requiring tho trust com
7sries thus affiliated with it 70 establish
system ~ cash reserves not A. that
tire -=,gre6 r- law Five per cent vas
70 be maintained from June I. 1906. q. per
cen from Tcb~gar-. = -o1t and On and
after June loN minimum - n per
-snt and 2 maximum ~ l5 per cert. tHe
er.rs - te fixed hv tho Clearing House
--r,rit-ss The trust conTsniee resented
:,s acuon and an except tTo Or three
ceased clearing through member banks.
'.s --.cn Trust Con-panr 'ssdlu- the V7r
4 ArrfI
n Nash. 800 Ma 1ae sent circular
'-fre~ 90 tho Clearing House members s1c-
ss,'iHs that tbs trnst companies be admitted
20 ,1subsrship under certain restrictions
~ MS letter he quoted au amendment
or.-ed 20 the Clesurg House constitution
several months before on which no action
vas e-er taken. providing that trust com
panies be admitted sS associate member
rs-hoIt ire privilege of voting II t1e
rou.d gree to keep r Is per cent re-er'"
IRE 'rus- companies did not take kindly
80 ibis plan making it understood rhat
he were vel satisfied vith the 7-ork,rs
- -hs.r sstem of cieerlng over the
ro,1t4r snC that they would resume their
r-ss-nz House connection on no c'her
bass -rs7 that ~ Omission e- members
4i-h OH 4 the privileges ot memoersnir
A. re annual meeting IF Tie clearing
r,usa Association in October. 1915, Mr
Nash offered 9 resolution. which r1s a4oT
-. iastrvcr.re the Clearing House com
r-i-.se 2, consider the subject 20 the
nd -oat harmonious relations nav be re-
nsred en- q basis that VIII insure thsir
,.ts rust companies rizht 10 The Clear
ins House e!ther as menoere or through
rsprsssntati~e banks again. IN Ma
''i3 IRE Clearing House having mean |
~ciis zCcrte6 resolution offering Cleuba.
st.p 10 -re trust companies f -rev would !
i1s'1's.0 ~ Der cert reserve Ny. Nasn /
-en- letter 10 ei Cle@~Inz House banks
scEges-.ng t1at immediate action ~ taken /
toward bringing the trust companies INTO
80 Clearing House