Show HOW klOW THE CLEARINGHOUSE CLEARING HOUSE IDEA STARTED Data D t by E E A James James Bank Examiner for the Ogden Clearing House Association ISO 1 sO ONI ONI- ONI Fron the time lime cash began to tobe tobe tobo be superseded by checks drafts other p piper pip pr T In the transaction Cot cf business It has been and necessary that the th banks bani ot of a com com coin community should match malch the tho debit S and credits with one another dally daily sit an I 1 make the proper settlement In London in tl-e tl se tc century It was the tho custom of or the bankS to use up alk alk clerks or col col lectors a as we vc would ouid call cali them to togo toRO go o to each or of o the other nl b a In turn and collect the Actual to rover cheeks checks drafts and othor which had lu h d lJ In Inthe inthe the da dais I bu busine s bout About bout 1670 two ot of o these walk ehn cd to met In a T coffee corree where here here each had gone tor for a little refreshment It appe rs that messengers In thOse thos dase were vero re no nomore nomore more t iffT Irr for work than In our nur 0 on n time for tor it seemed teemed a ele eleer cieser er t t til these thep to effect their e right then end ind there tI thus the long walk the attendant fatigue Also AIo more time for tor refresh refresh-jm m nta CLERkS nB Their banks did not er dl dl co cr the subterfuge and so 80 o the simple meth meth- method od JQ w win was continued Other clerks learned ot CC the tho time and libor- libor saIng scheme ot of o their nJ before long lone the coffee house houe hn hec become the clearing houe hoite Many thousands of or pounds ed h hards daily dlly d lly without au ku- ku au or sanction or ot tho binks b sho ho believed belle td their clerks to be loT tol tol- tol following lowing their tedious rounds In- In Kind In-Kind of cr disposing ot of the e bUlI business Ir hand In a friction ot of the time time Tien ben the tho practice was disco discos discos- e cd ed there Kas as as ot of o opInion among among the bankers Some ordered It Stopped forthwith Others per- per rl el ln with Mith the germ ot of o merit In tho Idea held out for Its de elop- elop elop ment The litter hUer prevailed and II a artom room vi aas as engaged for tor the use ot of th tho boys Later Latr a set get ot of o vi was as as de and a manager manac I In charge charpe ot of o the entire ac- ac tl tI th 1 From this Informal begin I fling niner evolved the London clearing Clearing Ho iso ice the largest In the world orld Time and the the- the development or of American banking brought the s ss- ss s- s tc n to this country ew York p established Its house houe In 18 3 followed follo by bv Boston Doston Phila- Phila oNo Chicag-oNo burg and Chicago No v v e ery city of or size or commer- commer commer-clil commer chi has Its house houe All follow tollow the same 8 mo ole ole- ole Idea and labor though 10 1 conditions make moke special rules ble S O s s an illustration of ot the eco ceo cco rue fbi association it Is Interesting to tsen i i sere er e e that Its lost I it aggregate or of business Is accomplished by the th use up or of o only about 7 per cent In actual money mono transferred the re- re remainder re remainder being being- c c- c d Joy liy log ing opposing di ard credits eTe J S ARI rr I rr a clearing house houp as- as is Is functioning It will be found a as a unit to be ho leading the banking thought of or the community This I Is necessarily the fact not orv oris the largest larRest and most banks s of oC the ar are always mem members rs of or the asso- asso cl asso el lon but also because thE th con con- continuous con operations operation of ot the bOdy tigh I 1 ls i cl and th pe- pe pe periodical meetings meeting of ot tho the clearing association boio committee and the tion laet the org I II n in art an anni position w with Ith regard to te local conditions The Th clearing house n I is tie the medium through which all 1111 o allt to t banks ot of o the community largo large 01 small can ean find lind their bet best b st cx- cx pi ex VIPs lon f responsibility te pon first t to their own public and nd In their mr lar er Cr sens sense ense to the entire public at each rives gives glye to the association tion ion III 1 Jo legally and co oper co-oper It again aln In dividends ot of o er a responsibility accepted as ns well relt as ItS the Knowledge by Its it membership It has ha gh phen gilen en to Its 0 own n customers the h itt i-itt l safeguard available tor for the of ot their funds lliors note not note Tills I Is the fIt of a Cries of ot six Ix iz articles article by Mr Jr mOo J on the clearing how house that npr r on hoc financial of if I 1 lie he Standard d front I tin lUte c to 10 time Inic |