The Birmingham age-herald., 1915-10-15
Mind Unable to Comprehend Enormous Business Done
 by Great Institution
FINISHES ITS DAYS
 WORK IN TWO HOURS
Transactions Have Been so Systema tized That Great Sums and Figures Are Handled Like
 Clock Work
By HOLLAND

New York, October 14.-(Specal.)-S
 the annual report of the New York Clear
 ing House association was made public
 few days ago. there has been oppor-
 tunity to study some of the extraordinary
 sta tistics contained in that report. first
 reading of the New York Clearing House
 association report is likely to produce
 a rather confused state of mind. That
 is due to the fact that the figures are
 enormous. The human intellect cannot
 grasp that except by some method of illustration or some kind of comparison.
 Tho figures are to be compared with those
 which tell of the distance between the
 earth and celestial bodies and none but
 minds gifted with unusual power for ab- stract mathematical calculations can com
 prehend massive figures of this kind. l One important feature of the annual
 report of the association Is the disclos-
 ure which it makes, to some extent at
 least, of the business, commercial and financial situation as that prevailed in
 the United States in the 12 months end
 ing June 30, 1915. The. New York Clear
 Ing House association. like the New York
 postoffice or the New York custom house,
 is not local institution, but is really
 national. Through 1t pass the visible
 evidences of much of the greater barter ing or trade in which the people of the | united States were engaged in any given
 l2 months. Max May. one of the world s greatest authorities on foreign exchange | would be able, had he the time to pre-
 pare statistics to show how much of the l cotton trade of the United States, and l especially its export trade, is represented by New York Clearing House transac- 1 tions.
 l A year ago the outlook for a gratifying report of the years transactions in the clearing house was far from promising
 The great industries of the United States were at complete ebb. The railroads were struggling, domestic business was very slack and the New York Stock ex- change was as silent as though week days Of Sundays were the order. The outlook then was that the association
 might be compelled to report at the end of the clearing house year. which be- gan on October l, the smallest transac- tions carried on through the clearing mouse since many years ago.
 The change occasioned by the European war, the almost miraculous transforma- ton which characterized the relation of the United States to the rest of the world, commercial and financial, make 1t possible for the clearing house to make a report far different from the one which lit was thought likely it would have to year ago. Using round numbers only the exchanges for the fiscal year present. ed ir June 30 were s91, 900, 100000. The enor- mity of these exchanges may be under- stood when it is stated they compared favorably with the estimate of the wealth of the United States.
 In the latest fiscal year a little over s5- 0c0, 000O00 in cash was required in order to settle balances The amount required Tor this purpose in the previous fiscal year was little less, proportonately as
 much less as were the total exchanges Of that fiscal year as compared with the total exchanges of the last fiscal year. Again the clearing house association
 demonstrates in its reports how vast is
 the proposition of business perfected by
 means of barter or exchange and how small the proportion of cash which is needed to complete transactions. Only So,WO,OO0OOO in cash was required to settle
 exchanges aggregating $91, ,0OO, 900, ,000O. Or,
 if the cash balances be added to the ex- changes, it is found that the total trans actions of the fiscal year just ended were
 little over $96.000, GOO 900. The late Fred erick D. Tappan at one time president of
 the Clearing House asaeciation, used to say that there was no better object lesson whereby the people could be taught the PaAt Cic cuiL PldyS III IdCl.1I8LlnR DdrIer or trade than is the one furnished by the record of the New York Clearing House association. Business men, farmers,
 bankers and all others in the United
 States, so far as their transa ctions were reflected in the New York Clearing House association, exchange much the greater part of their commodities by the utilza-
 tion of credits, usually in the form of
 checks or bank drafts of the aggregate money value of $91. .0000, 100000. A little over 6 per cent of the transactions represents the amount of cash employed in order to
 complete the exchanges.
 Some Marvellous Figures
 The late Moses Taylor, in association with a few other New York bankers, per- fected little more than 60 years ago the New York Clearing House association. These creators of the clearing house
 builded wiser than they knew. They did not at first realize what the relation of the New York Clearing House to the business life of the whole country was to be. The establishment of the New York Clearing House association was for the purpose of convenience and economy in handling the transactions between the local banks The clearing house of today represents evolution, and is one of the finest examples of that law. It was not
 until some 10 years after the clearing
 house was established that the members
 had good understanding of the latent but very powerful resources they possess fcr
 the prevention and the ending of panics.
 This evolution is illustrated by figures which the imagination cannot even grasp.
 The exchanges carried on since the clear
 ing house was established are to be reck. oned by trillions. not by billions. and the
 constantly acceierating growth of trans- atcions reflects the wonderful growth of the United States in wealth and influence since 1850. Yet 50 wonderfully systema- tixed is the machinery of this organixa- tion that it can perfect its daily business in the course of two hours.
 mINAIAYEooEE EAID