The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1913-10-13
ANNUAL REPORT NEW YORK
CLEARING HOUSE ASSOCIA-
TION DISCUSSES INTERESTING
FIGURES--HOLLA ANA
LYZES REPORT FOR READERS
BY HOLLAND.

ny
New York. October 13.-lSpecial) AT
tention was naturally enough fixed for a
few days upon the figures reported by the
Clearing House association of New York
at the annual meeting last week, which
showed in what sectional directions the
loans made by the banks of the associa-
ton went in the year which ended Sep
tember go For there have been some
complaints voiced, in one instance at least
by a United States senator, that the
banks of New York have refused to give
accommodations to the crop growing Sec
tons. and especially those of the south.
1t was even asserted that the New York
banks were deliberately strangling, for
selfish purposes, the crop growers of the
United States. and especially those of
the south. Because OF these accusations
the statistical report made to the asso-
ola ton at its annual meeting last week
describing these loans in some detail was
of far more than local interest. 1t seems
to have attracted widespread attention.
The figures show that the banks of the
Clearing House association had loaned
money in larger amounts by approximately
$S0,00000O to the crop raising sections of
the United States than to Wall street
presumably the Wall street brokers' Fur
thermore the figures showed that these
banks had loaned in the south an aggre-
gate of $4,000, 000 which was some $780,
900 more than the loans made to that
part of the country which Is west of Ohio.
or course, the larger amounts of loans
was made in what is called the eastern
district, for in this district are located
the greater manufacturing and industrial
organizations of the United States.
Another Point of View
But now that it has been demonstrated
by official figures that the banks of New
York have fairly well distributed their
loans, from the section point of view.
there is another feature of the report
which has just been made public which is
even more instructive than the one just
referred to- Using round numbers, the
aggregate exchanges of the New York
Clearing House association In the Il
months ending on September 80 last was
sos, 0O0, 0O0, 900. This is about $500, 900 900
more than the aggregate exchanges for
the like period in the year 1872. There
was then some increase, not very great.
in the business of the United States so
far as that was represented by the New
York Clearing House transactions.
All but $780, 900 of this aggregate of
sos 600 100000 was paid through swapping
of checks, that is to say. the exchange
of drafts and checks and other instru-
ments of like character. So, also, in the
Il months of the preceding clearing house
year all but about 5000, 100000 of these
transactions was settled by means of ex-
change of checks, drafts and like obliga-
lions. A rapid glance at a record kept In
the clearing house of the transactions
each year for the go years since the asso-
citation was organized reveals practically
the same relation of cash payments In
the clearing house to exchange. 1t av-
erages about per cent. Two or three
times the average was a little larger than
this. due to exceptional circumstances.
This record has been kept so long that 1t
may safely be assumed to demonstrate
a fundamental law-namely, that II re-
uuires only about per cent in cash to
perfect and complete the great barter car
rfed on by the United States each year.
A hundred billion dollars which represent
ed trade in the United States. or that por-
tion of ii whose transactions are carried
through the New York Clearing House,
may be completed by paying 5000 600
IN cash. the rest of this trade being eff
fected through barter operations. These