Each big city has a system of a clearing house

Each big city has a system of a clearing house. To establish a clearing house, many banks connect themselves together, under certain instructions, for the purpose of an exchange daily once and place checks and other bill which they remember each other. Usual officials - the president, the secretary, the treasurer, both the manager, and clearing house committee. Checks, etc., which banks take to a clearing house, name clearing house exchanges, and a total sum papers name clearings of day. Those banks which bring less quantities than, they clean, are obliged to matter, good in cash or its equivalent within motionless time in the same day. Assume, for an illustration, that the clearing house association consists of five Banks-A, B, C, D, and E-and, which Bank A took to checks of a clearing house against B, C, D, and E achievement 20 000$, and that B, C, D, and E took to checks of a clearing house against achievement 21 000$. Then A there is this specific day a bank of the debtor, and owes a clearing house, or other banks through a clearing house, 1000$. Payment of balances by banks of the debtor and the receipt of balances banks of the creditor finishes transactions of each day. As the total sum brought to a clearing house, always is the same as the cleaned quantity, thus balances, should from banks of the debtor, there should be precisely equal to the sums to reception banks of the creditor. Clearings in New York in one day make from 100 000 000$ to 200 000 000$, and the actual processed cash if those in general are available, require [251] only to be for actual debtor balances. Usually once a week (in some cities
To thicket), city banks do to their clearing house the message based on daily balances, their conditions. The Clearing house establishes association among banks which has already proved in days of a panic of money of the biggest service to itself and community.
PAYMENT of BALANCES In CLEARING HOUSES