Evening star., 1916-01-07
new YORK TO COLLECT
LOCAL CHECKS At PAR
Clearing House Association Offers
to Put Washington on Its Dis
cretionary List.
Would Help Business Men-Local
Stocks Slow-Many Changes in
Bank Directors Are Coming.
BY I. A. FLEMING.

There is every probability that within
a short time checks drawn on funds
in the banks of Washington will be
acceptable all over the United States
at par.
At the present time collection charges
are made by New York city banks and
many other points and merchants and
business men generally, when settling
accounts are compelled to send drafts
on New York city in liquidation.
The clearing house of New York has
what is known as discretionary list"
a comparatively small number of cities
being named as points from which
checks win be received at face value.
This in addition to central reserve cities
Some two years ago the local Clear
ing House Association appointed
committee to investigate and. if pos
sible. secure the placing of Washing
ton on the discretionary list. Nothing
came from the committees efforts.
Yesterday all Washington banks re-
ceived an invitation from the clearing
house collection department of New
York city to accept the privileges of
collections at par.
This organization is the collection de-
partment of the clearing house asso-
citation. 1t is collecting checks for more
than 500 institutions. which have filed
an agreement to remit at par in clear
ing house funds on the day of receipt.
December 29 last an amendment was
adopted extending the collection zone
to banks that are near enough to New
York city for remittances made the
night before to reach New York by 8
o'clock the following morning
The notice to local bankers explained
this action. and added:
I'VE should be pleased to add the
name of your institution to the 'discre-
tionary list and handle checks on it
through the collection system"
1t is necessary for local bankers to
agree to make remittances in New York
funds the same days checks which have
been paid in New York are received at
the bank on which a check or checks
have been drawn.
The discretionary list includes Bal
timore, Philadelphia, Albany, Troy, Jer-
sey City, Newark, Hoboken and Bay
The Washington clearing house as
sociation probably will take action on
the proposition one way or the other
in the near future.
With Washington checks current at
par all over the United States. for the
New York clearing house would at
once send notice of its action to all
bankers. it would no longer be neces-
sary for business men to secure New
be acceptable.
1t might mean a small loss to bank
ers through collection charges, but it
would be. according to bank officials.
of great benefit to the merchants of the
city and business men generally. That
the clearing house tried to secure the
concession may indicate the acceptance
of the proposition.
Many Changes in Directories.
panies have decided to clean house ami
prepare for the time when the Clayton
law shall become effective. rather than
wait until the section of the law be-
comes effective, October 16. 1916. when
bank officials or employees cannot hold
two positions with banks in this or
other large cities.
Many men are now directors of two
and even three banks. and a number
will be asked to state their affiliations.
Changes in boards of directors of the
various institutions will be more num-
erous than ever before.
All natiopal banks and some savings
banks and trust companies hold their
annual elections next Tuesday.
Local Securities.
There was little or no interest in the
local stock market today. judged by the
transactions.
Railway preferred sold sparingly at
SO and s3k. while an odd lot of Mer-
genthaler brought III. These, with a
few shares of Norfolk and Washington
Steamboat. at I55. completed the stock
transa ctions.
Bonds also were quiet. despite the
fact that bankers are in the market for
bonds. as the demand for accommoda-
tions has fallen off greatly since the
first of the year. and money must find
employment
Local bonds, however, are too high
for profitable short time Investments
Norfolk and Washington Steamboat
IS sold at lo51z for small bonds
Condition Of the Treasury.
The condition of the United States
Treasury yesterday was:
Net balance in general fund, sI12,-
1853.
Total receipts. s1,ss0.694.
Total payments. $1,7!1,5-7.
The deficit this fiscal year is S4s,4o2,-
537. against a deficit of $5s,s93,4ss last
year. exclusive of Panama canal and
public debt trapsactions-