Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-03-08
BANK CLEARINGS
ALMOST DOUBLED
[Continucd From First Pagcl

Clearing House Committee: Donald
Mccormick, ex-ofTicio; James Brady,
William jennings George w. Reilly
and A. S. Patterson.
Mr.. Mccormick gave a clear-vision-
ell discussion of the business outlook.
The report of Secretary Al X. Thomas
is as follows:
"On March u. 1906 the representa-
tives of several of the banks of IIar-
risburg met in the directors room of
the Dauphin Deposit Trust Company
to discuss plans for the organization
of a clearinghouse association. The
old method of exchanging checks and
payment was of such a character that
it still bore the earmarks of Noah.
For years balances had been paid in
anything the debtor bank chose.
Sometimes currency was used in
amounts TO $50, 600 and the next day
the same currency would be handed
back with the compliments of the fell
low who had to count it the day be-
fore. Later balances were paid as
follows; Anything greater than 1000
was paid in exchange and anything
below $1,000 in currency, if desired.
Now, however, all balances of what
ever amounts are paid in Philadelphia
exchange through the Franklin Ma
tional Bank, Philadelphia, as deposit
tory Several meetings followed and
finally on May /, 1906 the Clearing
House was opened for business with
twelve member banks. The officers at
that time were Chas. A. Kunkel, then
president of the Mechanics Bank, as
chairman, and AL. K. Thomas. cashier
of the East End Bank, as secretary.
In 1907 six more banks were admitted
making a total of eighteen members,
which number is still the same.
Some faces seen at the early meet
ings are since gone; w. K. Alricks,
president of the Dauphin Deposit
Trust Company, and who was for sew
eral years the chairman of the Clear
ing House, II. ID. Hemler, president
of the Merchants National Bank and
the Central Trust Company, David l..
Jauss, president of the First National
Bank.
Important Changes
Several names, familiar to all, have
been dropped from our rolls by rea-
son of retirement from active bank
ing circles, viz. Lane S. Hart, former
president of the Commonwealth
Trust Company, William Whitman,
president of the Sixth Street Bank, ID.
b. Traver, president of the Peoples
Bank of Steelton, and Charles S. Boil,
president of the Union Trust Company
of Pennsylvania.
Several other changes have taken
place in our organization, namely, the
changing of the Allison Hill Bank to
the Allison Hill Trust Company and
the Mechanics Bank to the Mechanics
Trust Company, both of which institu-
tions became larger and better and
which meant, in the case of the Me-
chanics Bank, the last of the private
banks in Harrisburg.
AT the time of the organization OF
the Harrisburg Clearing House AS
sociation the capital invested by the
present member banks was $2,600,0O
as compared to $2,971, $50 now; the
surplus then was $2,59S,5 500 while now
it amounts to s3,713,000: the un-
divided profits then, $201, ,35S.S2 and
now $5O4,614.7s; the deposits at that
| time were S14,105, ,061.31, while now
they aggregate SIC, 991,S15.46.
How Panic Was Handled
In 1907, during the panic, which,
like the wind, we did not know from
whence it came nor whittier it went
the Clearing House Association issued
script" which, though somewhat un-
popular, was good and circulated in
stead of the long green" 1t was is
sued in denominations of 81, So, sic
and $40 to the amount of 100000 but
only 1856, 500 was put into circulation
Several hundred dollars are still in cir
culation, being held, we suppose, as
souvenirs.
The average layman does not know
what a clearing house is for nor what
volume of business is done in day
or year. During the first year 1906
while there were only eight months
in which business was done, $31,77S,
| 464.14 passed through the Clearing
House. Following is a list of the
yearly clearances from 1906.