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Show CLEARING HOUSE IS DEFENDED Banker Cesgrlff Cornea to Its Rescue Before Sen-ate Sen-ate Committee. INTEREST PAID BY SOME BANKS TOO HIGH Helps in Good Times, kat May Bring Rain In Panic Ik Hut. JodleUry nuWm tu aemt kaa u loonul hnrina on e rnwi Uw to rBt ombM-aakS ombM-aakS bnki to control th. rato of InMrwt on ) Tk. mwanr. mum Mil S. 51, to poDUIrly known M tbo doartac hoax wwm. J. E Oogrirf. praaldeat oi th. OonttiMaUl Jtlonl bank, and Sufana OUaa, caahiar or tka National Ooppar bank. war. aaatlonod kr aaaatora an tha ronmlttoa. Both baakara hroo.kt 0'it infrral lac ok smi at Ik. el.ariag botiM al uatioa. Wkil. Mr. oagriff puiol.l out tka laudahl. work doaa by tk. .laarina kouM aMoeiatioa k.ra ny ar-kitrarify ar-kitrarify Iaer.aiiBR Ik. rurr.acy with rlaarlog koox' rtifi-at harfcod by tka bank. awct. dariafl tk. nir of !W7, Mr. Oilri l.lar.d that tun Fir.t National baak uf I'ark City kad ar ewapliikod aaactly th. aamc .ad y iataiaf takir'n rb.'ki aMurrd ly tka M.t of tkat iaatitution. Mr Coirrif f waa tk. flrat bank.r wko waa k.ard H. aakrd to b awurn, bat Haaator h. t Mnith. rkair- wtaa of tk. mmuitta., dowbtad if tk. romaiittM kad tka rlabt ta w.ar kin. ka aakH tk. romtnittc. tn iu.tinn tin a. Ikniiuh k. w.r. uod.r oatk and to giva hia tatamrati taa am. SN deaea it would iva taani wrr ha wera. Ftxtaf of Rataa DoalaA. Mr. CoagTtff aaaartod that ihr rlaar lag houM haa never attamutad to Hi aa arbitrary rata of iataraat to hr roar gad to borrower, aa thii would ba impracticable. Tha rata ia deter mined hv tha baak knowledge of tha borrower ' abtlitr to raaet parmenla promutlj. aad alao b lha e.haraeter of eecuiitv offered- Home borrowara, be earn of their ability to par ou demand de-mand or on date of raaturitr, ham the right to a lower rata thaa othera who in it er be carried from term to term or from aar to vwr. There in ao form of demand loan eeeured br linled aeeurillee ia Halt Lake itv aa there la ia New Vorh CM. . There waa onlv one loataarr, he Baud, whan the rleariag houae filed aa arbitrary rate of interent. That wa ia tha panic of lflO. whoa a rata of S par cant waa fined on clearing houae loana to baaka made to eaeare tha eleariag houae certificate, laaued ia lieu of readv raah, to tide the pub lie oror tha extreme ahortage of that period.' That rule did not directW af fact the general public, aa the public wa, not required to pav intereat on rleariag houae certificate, and there waa ao depreciation in thia paper. Thia iataraat waa paid bv the bank a on daily balaaeee. Woald Curtail Clearing Houae Power. Mr Coagrif f aaid that if aaaate bill No. i ware to become affective, the eleariag houae would aot have tha right to ieeue aimilar certificatea la time af aimilar etreea Tha condition that aroae then waa la the aature of a contract con-tract between the baaka theiaaelvee, aad the public waa not affected. He declared tkat it would be utterly impracticable for tba baaka to combine oa rataa of intereat to borrowara, ba-nauee ba-nauee tha eoaditioaa entering lato each loaa would make each oaa different from all othera. Mr. CaagTiff aaid that loans in Halt Lake are slow aa it it, and If the rata ia arbitrarily fixed at t per eaat boat-eea boat-eea hoaaae will go eaat for their money, ataay firm here, he said, have their hank account, la New Tork City, where they float their paper, and merely mere-ly carry enough money here far current auaiaaaa. Ra amid that la the west the demand far money ia greater thaa tha enpply baoaaae of the rapid development and taa need of money ta bring abont that development High anaae Rata Daag ararav la tka matter of interest oa depoeita ba aaid that this pertained directly to tka eafetv of th bank aad of tk public pub-lic a fund ia tha bank. The eleariag aovee haa fixed a rate of ?i, par rent oa baak aceooata. Any bank paving or than H par cent cannot belong aa Aa clearing houae. Ho said that it |