LIBRARY OF THE UNIVERSITY OF CALIFORNIA. Gats THOMAS MOORE, Secretary. EDWD. G. MORRIS, Assistant Svritary. S. B. MURRAY, Chief Inspector. WHINNEY, SMITH, AND WHINNEY, Auditors. Head Office: 62, CORNHILL, LONDON, E.G. BRANCHES. LONDON: CORNHILL. Bermondsey. Bethnal Green. Alston. Ambleside. Bedford. Bewdley. Hyde. Kendal. Kenilworth. Kirk by Stephen. Stretford Road. Swan Street. Maryport. Morley. Bamber Bridge (Sub. to Preston) Bolton, Derby St. (Sub. to Bolton) Blackfriars. Blackburn. Knowle. Newoort (Mon.) Bradford Man. Charing Cross. Blackpool. Lancaster. | Northampton. j Chester Road). Clerkenwell. Bolton. Leamington. Ormskirk. Chasetown (Sub. Deptford. Bournemouth. Leicester. Ossett. to Lirhfii>l,n Islington (Metro. Bowness (Winder- Pontefract. Churchtown fSub. Cattle Market). Mile End. Newgate Street. Peckham. Rotherhithe. Shaftesbury Aven. Shoreditch. Stoke Newington. Tooley Street. Tottenh'm.Ct.Rd. West Smithfield. Whitechapel. BIRMINGHAM : New Street. Aston Street. Handsworth. Moseley Road. Small Heath. Smithfield. Snow Hill. Sparkbrook. Warstone Lane. Waterloo Street. mere). Bradford. Brampton. Brierley Hill. Brighton. Burnley. Cardiff Docks. Carlisle. Castleford. Chepstow. Chesterfield. Chorley. Cockermouth. Coleshill. Coventry. Derby. Eastbourne. Erdington. Fleetwood. Goole. Haltwhistle. Hexham. Hull. LEEDS : Park Row. Bramley. Burley Road. Kirkgate. New Wortley. North Street. Stanningley. Lichfield. LIVERPOOL Lytham. MANCHESTER : King Street. Ardwick. Bradford. Chester Road. Corn Exchange. Deansgate. Market Street. Moss Side. Pontypridd. PRESTON. St. Anne's-on-the- Sea. St. Helen's. Sedbergh. Sheffield. Silloth. Skipton. Southam. Southport. Stourbridge. Sutton Coldfield. Swansea. Tarn worth. Wakefield. Walsall. Warwick. Wednesbury. Working ton. Audenshaw (Sub. to Hyde). to Southport). Cleobury Morti- mer (Sub. to Kewdley). Derby (Cattle Market). Ferndale (Sub. to Pontypndd). Garstang (Sub. to Preston). Hampton-in-Ar- den (Sub. to Knowle) Hull, Billingsgate King's Heath (Sub. to Mose- ley Road). Kirkham (Sub. to Preston). Knottingley (Sub. to Pontefract). Laisterdyke (Sub. to Bradford). LONDON AND WESTMINSTER BANK, LIMITED. ESTABLISHED MARCH, 1334. Subscribed Capital, 14,000.000. Paid-up Capital, 2,800,000. Best or Surplus Fund, 1,600,000. DIRECTORS. RICHARD JAMBS ASHTON, Esq. OTTO AUGUST BKNKCKE, Esq. JOHN NUTT BULLEN, Esq. Sir ALFRED DENT, K.C.M.G. BONAMV DOBREE, Esq. AUGUSTUS WILLIAM GADESDEN, Esq. HENRY GOSCHHN, Esq. FERDINAND MARSHALL HUTH, Esq. CHARLES EDWARD JOHNSTON, Esq. WALTER LEAF, Esq. Rt. Hon. LORD LOCH, G.C.B., G.C.M.G. HENRY JOHN NORMAN, Esq. HOWARD POTTER, Esq. JOHN SANDERSON, Esq. HENRY PARKMAN STURGIS, Esq. CITY OFFICE COUNTRY DEPARTMENT ... WEST-END OFFICE BAYSWATER BRANCH BLOOMSBURY BRANCH ... EASTERN BRANCH HAMPSTEAD BRANCH HOLBORN CIRCUS BRANCH HORNSEY BRANCH ISLINGTON BRANCH KENSINGTON BRANCH ... LAMBETH BRANCH MARYLEBONE BRANCH MANAGERS. 41, Lothbury, E.C W 41, Lothbury, E.C H. i, St. James's Square, S.W. ... G. 133, Westbourne Grove, W. ... A. 214, High Holborn, W.C. ... H. 130, High St., Whitechapel, E. C. ro6, Finchley Road, N.W. ... C. H. G. 8, Holborn Circus, E.C. Broadway, Crouch End SOUTH KENSINGTON SOUTHWARK BRANCH TEMPLE BAR BRANCH . ASTLB. F. BlLLINGHURST. R. HEMMERDE. H. DAWS. E. KEENE. FISHER. HATFIRLD. R. S. MASSBY. BANKS. G. LINDON. N. DENNANT. BENNETT. D. MILLETT. , D. NICHOLS. N. HERBERT. T. WALLIS. R. KETCHLBB. P. PLANTE. LF.E. 269 & 270, Upper Street, N. ... I. 94 & 96, High Street, W. ... E. 91, Westminster Bridge Rd., S.E. J. uia+^ + ^^wj.-.*, ^*>..i-.^i* ... i, Stratford Place, Oxford St., W. C. OXFORD STREETJ5RANCH. 112 & 114, Oxford Street, W. ... W. i, Brompton Square, S.W. ... P. 6, Borough High Street, SE.... ]. 217, Strand, W.C B. R AD }44& 46, Hampstead Rd., N.W. A. VICTORIA STREET BRANCH 62, Victoria Street, S.W. ... G. SECRETARY. -A. M. HAWTHORN. INSPECTOR OF BRANCHES-H. L. RUTTER. The present subscribed Capital of the Bank is 14,000,000, in 140,000 Shares of 100 each, held by upwards of 8,500 Shareholders. The sum of 20 has been paid on each Share, thus making the paid-up Capital 2,800,000. The Rest or Surplus Fund is 1,600,000. Current Accounts are opened with, and the usual Banking facilities granted to, persons properly introduced. The Bank takes the Agency of Private Country Banks, Joint-Stock Banks, and other Public Companies in England or the Colonies ; attends to the purchase and sale of British and Foreign Stocks ; collects Dividends on Government Funds. Railway Stock, Foreign and other Securities, payable in England or abroad ; acts as Agents for the receipt of Military and other Pay and Allowances ; and generally transacts every description of Banking business. Sums of 10 and upwards may be deposited, repayable at call ; sums of 500 and upwards may be deposited upon seven days' notice of withdrawal. Interest is allowed thereon, according to the class of Deposit, but subject to alteration by public advertisement in the Times newspaper. Cheques cannot be drawn against Deposit Accounts, nor will Depositors be entitled to any of the usual Banking facilities of a Current Account. A receipt is given for each deposit, which is not transferable, and must be surrendered on repayment of the amount, according to the conditions printed thereon. Circular Notes of 10, 25, and 50 are issued for the use of Travellers, payable in the principal towns of F urope, Asia, Africa, and America. They are issued fiee of expense, and are payable by the Agents abroad, at the exchange of the day, without any deduction whatever for commission. Letters of Credit are also granted, payable at all the Chief Towns and Cities abroad. They may be obtained at the Bank in Lothbury, or any of its Branches. The Officers of the Bank art not allowed to receive any Christmas Boxes or Gratuities. LONDON, December, 18 A. M. HAWTHORN, THE LONDON AND PROVINCIAL BANK, LIMITED. SUBSCRIBED CAPITAL RESERVE FUND (Invested in Consols) 1,200,000. 815,000. Sl T. WILLIAM BOORD, Bart. Sir EDWIN H. GALSWORTHY. DIRECTORS. I Sir ALEXANDER MONCRIEFF, K.C.B., F.R.S. ! BRINSLEY NIXON, Esq. Sir HERBERT K. MAXWELL. Bart., M.P. I CLARE SEWELL READ. Esq. RICHARD MICHELL. 1-sq. | Sir JOSEPH SAVORY. Bart., M.P. GENERAL MANAGER.-JOHN WOODROW CROSS, ESQ. AUDITORS. ERNEST COOPER, ESQ. | EDGAR FIGGESS, ESQ. SOLICITORS. SECRETARY. MESSRS. MUNNS & LONGDEN. | THOMAS JAS. GRIGSON, ESQ. LONDON AGENTS. MESSRS. GLYN, MILLS, CURRIE, & CO. HEAD OFFICE, 7, BANK BUILDINGS, LOTHBURY, E.G. LONDON SUBURBAN BRANCHES. Anerley Beckenham I Enfield j Essex Road Lewisham Leyetonstone Southgate South Kensington Thornton Heath Tottenham Bennondsey ; Hackney Manor Park South Tottenham Twickenham Bexley Heath Blackheath Harringay i Highbury Mitcham Staines New Cross Gate | Stamford Hill Walham Green Walthamstow Canning Town 1 Hornsey Newington Green' Stoke Newington Westcombe Park Catford ! Ilford New Southgate Stratford, E. Wood Green Edgware Road 248,765 18 214,810 25 214,950 1 Feb. 270,513 8 288,271 15 ,, 242,024 22 209,927 29 283,628 7 Mar. 290,452 119 Week ending 14 Mar. 1896 202,748 21 201,843 28 230,479 4 April - 285,725 11 - 144,167 18 227,507 25 224,215 2 May 280,335 9 - 226,259 16 252,233 23 "269,140 30 160,406 6 June 240,791 13 187,850 20 177,779 27 202,181 4 July 350,090 11 217,758 18 223,942 25 197,420 1 Aug. 289,584 8 281,860 15 271,116 22 187,605 29 228,693 5 Sept. 277,850 12 194,647 19 ... 203,549 120 CHAPTEK XL THE EDINBURGH CLEARING HOUSE. THE mode of procedure at the Edinburgh Clearing House is again somewhat different to the plan adopted in Post Office Court, Lombard Street. The banks whose representatives sit in the House are : 1. Bank of Scotland. * 2. Royal Bank of Scotland. 8. British Linen Company. 4. Commercial Bank of Scotland, Limited. 5. National Bank, Limited. 6. Clydesdale Bank, Limited. 7. Union Bank of Scotland, Limited. The Clearing House is divided into two compartments one for notes, the other for cheques. The notes are entered on slips, and are delivered to the various banks 121 just as the cheques are treated, and at the close of the transactions for the day a form is filled up and handed over to the presiding bank. Edinburgh, 18 BALANCES OF EXCHANGE. In our favour. Union Bk. of Scotland, Ltd. Against. Bank of Scotland - - Koyal Bank - - - - British Linen Company Commercial Bank - - National Bank - - - Union Bank, Limited - Clydesdale Bank - - - Balance - - - With regard to the cheque clearing, a book is kept for each bank, ruled and perforated, thus : CLYDESDALE BANK, Limited, from UNION BANK, Limited. Date 18 122 By the use of a pencil and carbon paper a duplicate is retained. A list is made out for each bank, and being affixed to the cheques themselves, is delivered on the desk of the bank on which the drafts are drawn. There is one clearing daily. As in London, so here, at the close of the day's transactions a balance is struck with each bank, and a form is filled up similar to the following : Edinburgh,. .18. CLEARING HOUSE BALANCES. (Name of Bank], Due to Bank, Limited, by Due by Bank, Limited, to Bank of Scotland Koyal Bank British Linen Company Commercial Bank, Limited... National Bank, Limited Clydesdale Bank, Limited ... Union Bank, Limited Balance due Bank, Limited. 123 On the settling days (Mondays and Thursdays) a some- what different arrangement is made by the use of a form as under : (Name of Bank]. Edinburgh, ___18 GENERAL BALANCES OF EXCHANGE. In favour of Banks. Against Bills drawn. In favour of Bank of Scotland - - - Koyal Bank. British Linen Company. - Commercial Bank, Limited National Bank, Limited - Union Bank, Limited. - - Clydesdale Bank, Limited- Union Bank, Limited - - Instead of a settlement being made at the close of the work of each day, as in London, although a balance is struck each day, still no actual transfer takes place except on the settling days. 124 CHAPTEE XII. SCOTCH CLEARING. In previous chapters we have remarked that the wonderful success of the town clearing system intro- duced in London very quickly led to a clearing for country cheques being arranged ; this has now grown to almost fabulous dimensions. Further, we notice on all sides this example has been adopted and put to practical use ; already we have written about the Clearing Houses at Manchester, Edinburgh, Glasgow, and Newcastle, and we have yet to mention the institution established on the like basis in Paris, New York, and Berlin. The Eailway Clearing House and the Postal Telegraph Clearing House are most probably off- shoots from the same parent stem. For some time matters had been most carefully considered as to the practicability and advisability of 125 establishing a system for the clearing of Scotch cheques and bills, but no successful plan was arrived at till 1883, when arrangements were made and a system started which has gone on most creditably and happily ever since. It had been long the custom for all London and other bankers to send their Scotch drafts to the North for collection, and this necessitated delay and much risk in transitu, besides entailing a great amount of labour and anxiety. The Scotch banks charged a commission on the various payments which from time to time they made to the different banks from whom they received the drafts for collection, and this commission, with perhaps some slight addition, was in its turn debited to the customers who paid in the drafts. Now, in the course of twelve months the amount paid and received in commissions thus charged was considerable ; but this was not a point of grievance to any great extent. The difficulty which one wanted removed was the uncertainty for so long a space of time as to the payment or other- wise of a cheque or bill sent to Scotland. Presently the idea of a Scotch clearing system was hit upon, or, to be more precise, it was resolved to apply the " clearing " principles to Scotch cheques. As things are now, there- fore, a banker sends all the drafts he holds which are 126 domiciled in Scotland to the bank with which he has an account and who acts as his agent or correspondent in the collection of bills and cheques sent for this purpose. These cheques, &c., are credited to the correspondent and passed through the Clearing House, listed on slips, under the heading of banks drawn on. The balance of the Clearing House is settled day by day by each bank issuing a draft on their Edinburgh office, for the balance due by them in the Clearing House, in favour of either the Bank of Scotland or Eoyal Bank of Scotland, as these banks take charge of the settling of the balances of the Clearing House alternately for a month at a time. When the balances are in favour of any one bank, the settling bank for the period grants a draft, also on Edinburgh for the same. These drafts are brought into the settlement of the exchange of notes, &c., and of the Clearing House balances in Edinburgh on Monday and Thursday of each week, and the balances finally settled for in London four days thereafter with the different banks with which they keep account, who again pass their cheques through the Clearing House. These batches are credited to the accounts of the various banks whence they are received. In fact the Union of Scot- land and the other banks treat the various English banks 127 who use them as their clearing agents in every respect as though they were its branches. Of course each batch of cheques and drafts sent to the different Scotch banks is accompanied by a slip on which all the various items are entered : this is checked before the drafts are dis- tributed. When all the daily packages are opened, the cheques and bills payable at the leading banks (those which are in the Glasgow Clearing House) are sorted into batches or lots, and are then entered on slips, duplicates of which are retained and sent down to the House. The following banks are represented in the Glasgow House : The Bank of Scotland. The British Linen Company Bank. The Commercial Bank of Scotland, Limited. The Clydesdale Bank. The National Bank of Scotland, Limited. The Royal Bank of Scotland. The Union Bank of Scotland, Limited. The various batches are deposited on the different desks, and a series of entering, checking, and agreeing commences, which consummates in a balance being struck as in other clearing houses. The balance is paid day by day, but is carried forward and cleared off on 128 settling days, by a draft on Edinburgh, which again is brought into the Exchange in England, two of which occur each week. The bank with which all the other banks have to settle is not always the same, one or two of the leading banks taking it in turns to be the settling bank. The returns are treated, so far as the clearing is concerned, the same as in London. When the Union Bank of Scotland receives its returns, which of course belong for the most part to some of the many banks which it represents, the various unpaid drafts are sorted, debited to the accounts of the banks to which they belong, and posted off the same day. Remittances are made by drafts on the London office of the Union Bank of Scotland every Thursday. Thus it will readily appear that to the London banks a great saving of time and labour is effected ; one postage serves the purpose of all, as all cheques are sent to the one headquarters, and one payment being sent for the week's work saves the passing of an endless number of credits and debits, as well as materially lessening the work of certain departments of the bank. Special arrangements are made for the collection of bills, &c., payable at private places, and it should be remarked that whereas we have simply described the process of clearing as carried 129 on with the various head offices of the Scotch banks, yet drafts on all their country branches are cleared in the same manner as the country clearing in London is managed. If the Union Bank of Scotland receives from one of the English banks drafts on towns where it has no agents, it sends them, through the clearing, to banks (also in the clearing) which do happen to have branches there. These cheques are debited to the account of the collecting bank, which is credited when the vouchers are either paid or returned. Thus, suppose the London and Midland Bank sends in its cheques to the Union Bank of Scotland a draft on Airdrie, the Union of Scotland, itself having no branch in that town, charges the draft to one of the banks having a branch in Airdie. These send the draft to their branch, the branch debits the head office or returns the draft unpaid, and the head office debits the account or returns the draft to the Union Bank of Scotland, which thereupon forwards the necessary advice to the London and Midland Bank. Clearing Houses on a far smaller scale exist in such places as Aberdeen, Greenock, Dundee, Pais- ley, &c. We must express our regret at being unable to present our readers with statistics as to the amount of clearing 180 done through this latest extension of the clearing system ; we had hoped to have given figures showing the totals paid daily and weekly, but we find that no returns are at present made. -,-K- 131 CHAPTER XIII. THE PARIS CLEARING HOUSE. THERE is an old proverb, " Imitation is the sincerest flattery," and acting on this line, could the founders of our London House take a bird's-eye view of the " clear- ing " system as it is now extensively practised, they would have great cause for mutual congratulations. Not only in our own country do we notice the enormous growth of the clearing system, but other countries which have introduced it, as an improvement in their financial arrangements, show by their returns that it is rapidly on the increase. The fact is that the advantages accru- ing from a system of this kind are so manifest that a people must be entirely callous of its own interests if it does not have a Clearing House of its own. The " Chambre de Compensations des Banquiers de Paris " is situated in the Place de la Bourse, and was K 2 132 established by the heads of the various banking establish- ments in Paris, in March, 1872. In their " Accords et reglements," we find " Les soussignes, dSsirant etablir a Paris une Chambre de Compensation des banquiers a 1'instar du Clearing House de Londres, etc." With one exception, the Banque de France, all the undermentioned Banks now members of the Chambre can claim the honour of having assisted and taken part at its inaugura- tion : 1. Banque de France. 2. Comptoir d'Escompte. 3. Credit Foncier. 4. Credit Industriel et Commercial. 5. Credit Agricole. 6. Societe de Depots et Comptes Courants. 7. Credit Lyonnais. 8. Soci6te Generate. 9. Banque de Paris et des Pays Bas. 10. Caisse Commerciale de Paris. 11. Claude Lafontaine, H. Prevost Martinet et Cie. 12. Lebideux et Cie. 13. Thelier and Henrotte. The Chambre de Compensation transacts no little lusiness, as we can readily infer from the fact that the 133 average weekly paid clearing varies from Fcs.90,000,000 to Fcs.95,000,000 while the total paid clearing for the year 1895 amounted to Fcs.4,916,794,059. The manner of working seems in imitation of our Manchester rather than of our London House, for slips are used extensively and books but very little. A glance at the Eules will doubtless interest many of our readers. The President of the " Chambre " is Mons. H. Purier (President de la Socie"te* Generale de Credit Industriel et Commercial). Reglement de la Chambre de Compensation. ART. 1. La liquidation des operations de chaque jour s'opere dans une seule seance qui commence a neuf heures et demie du matin et doit etre termine a deux heures et demie les jours ordinaires, et a trois heures et demie les jours du paiement des echeances des quinze et des fins de mois. ART. 2. Le papier nouveau, de toute nature, peut etre prSsente" jusqu'a une heure et demie les jours ordi- naires, et deux heures et demie les deux jours de grande echeance. Le papier retourne peut etre presente pendant toute la duree de la stance ; il est seul re?u d'une heure et demie a deux heures et demie les jours ordinaires, et de deux heures et demie a trois heures et demie les jours de grande e"cheance. 134 A. deux heures et demie et trois heures et demie, suivaut les jours, les portes seront closes et aucun messager ne peut etre admis sans une autorisation speciale de 1'inspecteur. ART. 3. Tous les messagers qui se trouvent-rendus dans la Chambre au moment ou 1'horloge sonne : Les jours ordinaires, une heure et demie pour les effets nouveaux ou deux heures et demie pour les effets retournes ; Les jours de grande e"che*ance deux heures et demie pour les effets nouveaux ou trois heures et demie pour les effets retournes, ont le droit de distribuer les cheques et effets dont ils sont porteurs, lors meme qu'ils n'ont pas encore commence cette distribution au moment ou 1'horloge a sonne". ART. 4. Tous les cheques et effets, tant nouveaux que retournes, doivent tre portes sur les feuilles de credit avant la leve"e de la seance. ART. 5. Les messagers, leur arrive"e a la Chambre a la fin de chaque seance, doivent apporter les feuilles de de"bit remplies aux banques memes. ART. 6. II est interdit aux employes des di verses banques de faire aucune nouvelle entree sur les feuilles de debit, dans 1'enceinte de la Chambre. ART. 7. Lorsque, par suite d'erreurs ou d'omissions, quelque cheque ou effet a ete distribue" -sans etre 135 revetu du timbre de la banque qui le remet, ou sans etre acquitte", et que, par suite, il n'a pas pu etre passe" au credit de qui de droit, 1'employe qui en est porteur doit faire connaftre 4 haute voix, dans la Chambre, les details de ce cheque ou effet. Dans le cas ou cette annonce ne suffit pas pour faire trouver le proprietaire du cheque ou effet, 1'employe porteur doit le remettre & 1'inspecteur qui fait les recherches ne"cessaires pour de"couvrir le proprietaire. Mais, dans aucun cas, ce cheque ou effet ne peut etre passe au de*bit de la Chambre jusqu' ce que son proprietaire ait ete retrouve". ART. 8. La mode de participation aux operations de la Chambre des succursales ou bureaux de quartier des Socie*te"s financieres sera reglee provisoirement par une decision du Comite". ART. 9. Tous les cheques et effets dont le paiement est refuse par les banques sur lesquelles ils sont e"mis doivent etre retournes Jl la Chambre et rendus le meme jour. ART. 10. Tous les cheques et effets retournes doivent etre accompagne"s d'une fiche portant mention des motifs du rejet. ART. 11. Le montant de tous les effets et cheques 136 retourne's est marque* d'un signe convenu, en marge, sur les feuilles de dbit et de credit. ART. 12. L'inspecteur de la Chambre de Compensation est charge de veiller au maintien du bon ordre et du silence dans la Chambre. II lui est enjoint de signaler au President du Comit4 les noms des employes qui troubleraient habituellement le bon ordre et dont la conduite serait de nature a me*riter de la part du Comite, soit une rSprimande, soit meme une mesure d'exclusion. ART. 18. A deux heures et demie les jours ordinaires et & trois heures et demie les jours de grande e'che'ance ou lorsque le travail des employe's des diverses banques est termine", 1'inspecteur re9oit d'eux les feuilles de compensation partielle. L'inspecteur 6ta- blit alors la feuille de compensation generale dont les deux c6tes, debit et credit, doivent se balancer exacte- ment. En cas d'erreur, et par suite de disaccord entre le d6bit et le credit, 1'inspecteur en recherche imme'diatement la cause avec le concours des employe's. Toutefois, 1'inspecteur est autorise" a ajourner la recherche de tout disaccord dont 1'impor- tance ne de"passe pas quarante-cinq mille francs. La feuille de compensation generale 6tant arrete*e, 1'inspecteur signe cette feuille ainsi que les mandats de virement sur la Banque de France, destines a faire crediter les comptes de ceux des membres de la 137 Chambre qui se trouvent creanciers a la fin de la journ^e. II s'assure que le montant des mandats de vire- ment 6mis par les membres debiteurs, pour solder leurs comptes, concorde avec la situation de chacun et avec le montant total des mandats a remettre aux membres crediteurs. L'inspecteur leve la stance lorsque toutes les opera- tions sont termin^es, et nul employ^ ne peut quitter la Chambre avant que 1'inspecteur en ait donne 1'autorisation. A la fin de chaque journe"e, 1'inspecteur envoie a la Banque de France une copie de la feuille de com- pensation g6n6rale, certinee par sa signature. II y joint les mandats de virement 6mis sur la Banque de France par ceux des membres de la Chambre qui se trouvent debiteurs a la fin de la journee. ART. 14. Les erreurs dont la recherche a et6 ajournSe doivent etre retrouve"es le soir meme, ou au plus tard avant 1'ouverture de la seance du lendemain, par les soins de 1'inspecteur, qui peut dans ce but requ6rir le concours des employes des diverses banques. ART. 15. L'inspecteur doit veiller a ce que les messagers des diverses banques repartent pour leurs etablisse- ments respectifs aussitot apres avoir regu les cheques et effets qu'ils ont a y porter. 138 ART. 16. Lies imprimis qui servent aux operations de la Chambre de compensation sont les suivants : 1 Feuilles de debit sur lesquelles les cheques et effets sont inscrits dans les bureaux de cJiaque banque au debit de chacune des autres banques faisant partie de la Chambre. L'inspecteur etablit lui-mme une feuille de debit sur laquelle il inscrit le montant de toutes les fiches presentees par la Banque de France, au debit de chacune des maisons qui font partie de la Chambre ; 2 Feuilles de credit sur lesquelles les cheques et effets sont inscrits a la Chambre par le representant de chaque banque au credit de chacune des autres banques faisant partie de la Chambre ; 3 Feuilles de compensation partielle sur lesquelles le representant de chaque banque etablit la fin de la journe"e la situation de chaque etablissement par rapport aux autres banques faisant partie de la Chambre ; 4 Feuilles de compensation generale sur lesquelles 1'inspecteur de la Chambre etablit & la fin de la journee la situation de chaque etablissement par rapport au compte de la Chambre de compensation ; 5 Mandats de virement des comptes individuels des membres de la Chambre, ^ la Banque de France, au credit de la Chambre de compensation. Ces mandats sont signes par les chefs des Societes 139 et Maisons, qui se trouvent debiteurs, a la fin de la journee. 6 Mandats de virement du compte de la Chambre de compensation & la Banque de France, au credit des comptes individuels des membres de la Chambre. Ces mandats sont signes par 1'inspecteur de la Chambre. 140 CHAPTER XIV. THE BERLIN CLEARING HOUSE. THE system of clearing as practised in England and America, and subsequently in Paris, has been introduced into Germany. England as one of the greatest financial countries in the world, rightly took the lead in this matter of clearing, hitting upon the idea and carrying it to a practical issue. Success in London led naturally enough to imitation in the provinces, and labour being saved and work economised, the clearing system appears to have acted, and still to act, with a kind of magnetic influence, urging and encouraging imitation. Though a clearing system had been carried on in Germany for some years, yet the difficulties were not completely over- come nor the principles thoroughly understood till the year 141 1883, when the Reichsbank inaugurated first at Berlin and afterwards at Frankfort-on-Maine, Stuttgart, Coin, Leipzig, Dresden, Hamburg, Breslau, and Bremen Clearing Houses. The amount of clearing paid through the Clearing Houses, in 1894 and 1895, were as follows : 1894. 1895. January ... 1,575,202,100 1,759,904,600 February . 1,293,832,600 1,478,840,000 March 1,546,114,800 1,807,745,900 April 1,587,898,900 1,809,917,500 May 1,546,806,300 1,745,518,000 June 1,558,458,100 1,637,250,400 July ... 1,531,996,200 1,959,246,700 August . . . 1,364,547,500 1,631,036,100 September. 1,491,409,800 1,721,423,800 October ... 1,651,897,400 2,070,126,200 November . 1,616,005,600 1,773,868,400 December . 1,633,870,300 1,889,948,200 Ziif. 18,398,039,600 ZUf. 21,284,825,800 142 The following is a translation of the EULES FOR THE CONDUCT OP BUSINESS IN THE BERLIN CLEARING HOUSE. (In force from tlw 1st March, 1885.) I. The Reichsbank, in common with the other mem- bers of the Clearing House, will send daily an authorised representative (vertreter) to the Clear- ing House every working day, even in the event of having no drafts, &c., to clear. The clearers' authorisation must be exhibited according to the following arrangement. It must be verified by the Inspector, and after the settlement, if possible, difference on the part of the authorisers must be noted by him. II. The drafts to be cleared must be sorted and stamped with the stamp of the firm in whose hands they are. Acceptances and bills of ex- change must be duly receipted. III. The Clearing House is opened at 8.45 a.m. At 9 o'clock all the clearers take their places. On a sign from the Inspector the delivery begins. Each clearer delivers the respective drafts, &c., to the representatives of those Houses by whom they are payable with, in each case, a list in detail, and cast, and a form, which, after being 143 examined and checked by the receiver, is re- turned to the person who presented it. The amounts of the drafts delivered are entered in the debit column of the sheet, if practicable before the delivery takes place, and those of the drafts received in the credit column. IV. On the conclusion of the delivery the clearers will repair to their respective offices where the examination of the drafts will take place. At 12.30 they will return. Then follows the delivery of drafts which have been dishonoured, to each of which a ticket must be affixed with the reason thereof, with a special statement and acknowledg- ment of receipt. This delivery is treated in the reverse way to an ordinary delivery and will be marked by the letter R on the clearing sheet. Receipts are not made out. All drafts not returned by 12.30 are considered and treated as paid. V. Fresh deliveries may take place at 12.30. They are to be marked in the lists (receipts are not employed) as 2nd Delivery, and otherwise to be treated according to Rules III. and IV. I. After the delivery and redelivery are concluded the clearers cast the debit and credit columns of their clearing sheets and ascertain through the balances of the latter what their Banks 144 have in all to pay or receive. Over the balance he will write the acknowledgment (or draft) on the Giro Office of the Reichsbank and also the amount in words on a separate ticket, which, with the clearing sheet, he will hand to the Inspector. VII. The clearers carry the balance forward to a " balance-sheet," both the sides of which, after the correction of possible errors, must agree with the summary. They next compare the various acknowledgments with his totals, initial them and also the clearing sheet, which latter they return. Finally they hand over the balance sheet to the Giro Office of the Reichsbank, which will at once proceed with the necessary transfers to and from the accounts of the various members of the Clearing House. The clearing is now at an end, and the clearers may leave the House.^j VIII. At four o'clock the House opens again. Drafts of the 2nd delivery not returned by that time are considered as paid. Fresh deliveries, which, however, must be confined to cheques and acceptances of the members, are to be marked "final delivery"; and otherwise to be treated according to Rule III. Drafts of the final delivery which arej^not returned on the same day, either through the 145 Clearing House or direct, before 5.80 p.m. are considered as paid. As soon as the deliveries and redeliveries are concluded the balances and settlements are proceeded with according to Rules VI. and VII. as at the end of the " 2nd delivery." IX. The Inspector has to keep an exchange book, into which he has to enter the number of articles delivered and the debit amount accord- ing to the sheet. The Balance Sheets are made up in yearly parcels by the Eeichsbank, and, together with the Exchange-book and the Cheque- tickets, kept by the Registrar of the Reichsbank. 146 CHAPTER XV. THE NEW YORK CLEARING HOUSE. IT will, we are sure, be interesting to our readers, to learn how our brothers across the Atlantic carry on their clearing. The Americans, naturally keen, have one peculiar and noteworthy characteristic they are ever ready to learn, and never weary of gleaning information from others. We, undoubtedly, were far on the track of the morning, so far as our clearing system is concerned, before they were alive to the fact that we presented them an idea which it would be to their advantage to ponder over. Our House was nearly one hundred years old ere the New York House came into existence. Finding the immense advantage which English com- mercial men reaped from the possession of so remark- able and useful a financial machine, our cousins on the 147 llth of October, 1853, started in New York their first Bankers' Clearing House. But as in most other things, so here, our actions seem to sink into Lilliputian insignificance when placed side by side with the action of the Americans. Their immense expanse of territory, their tremendous capabilities in a comparatively new country for development and improvement, their natural keenness of intellect, inherited from their Norman ancestors, their indomitable perseverance, their pro- digious opportunities for advancement and success, all tend, with a people daily growing in importance to make English thought and English customs when adopted by Americans a certain success, and what is more, the adoption and imitation of them, unquestion- ably places them on the path which leads to perfection. Our magnificent clearing system is no exception to the general rule, for we find that while England has had a Clearing House for considerably more than a century, and has but very few off-shoots from it at most a dozen America, who did not dream of adopting the principle of the system till 1853, has extended her work to such an enormous extent that at the close of last year but forty-two years having elapsed since 1853 no less than forty-one Clearing Houses have been established- - L2 148 Each of these Houses has several members, so that the number of banks represented is considerable. THE CONSTITUTION OF THE NEW YORK HOUSE (as printed in 1895) is as follows : SEC. 1. The name of this Association shall be " THE NEW YORK CLEARING HOUSE ASSOCIATION." SEC. 2. The objects of the Association shall be the effect- ing at one place of the daily exchanges between the several Associated Banks, and the payment at the same place of the balances resulting from such ex- changes. But the Association shall be in no wise responsible in regard to such exchanges, nor in regard to the balances resulting therefrom, except so far as such balances shall be actually paid into the hands of the Manager. The responsibility of the Association is strictly limited to the faith- ful distribution by the Manager among the creditor banks for the time being of the sums actually received by him ; and should any loss occur whilst the said balances are in the custody of the Manager, they shall be borne and paid by the Associated Banks in the same proportion as the other expenses of the Clearing House, as hereinafter provided for. SEC. 8. The Association at present consists of the follow- ing members : 149 ORIGINAL MEMBERS, 1853, Bank of New York. Manhattan Company. Merchants' Bank. Mechanics' Bank. Union Bank. Bank of America. Phenix Bank. City Bank. North River Bank. Tradesmen's Bank. Fulton Bank. Chemical Bank. Merchants' Exchange Bank. National Bank. Butchers' and Drovers' Bank. Mechanics' and Traders' Bank. Greenwich Bank. Leather Manufacturers' Bank. Seventh Ward Bank. Bank of the State of New York. American Exchange Bank. Mechanics' Banking Association Bank of Commerce. Bowery Bank. Broadway Bank. Ocean Bank. Mercantile Bank. Pacific Bank. Bank of the Republic. Chatham Bank. People's Bank. Bank of North America. Hanover Bank. Irving Bank. Metropolitan Bank. Citizens' Bank. Knickerbocker Bank. Grocers' Bank. Empire City Bank. Nassau Bank. East River Bank. Market Bank. St. Nicholas Bank. Shoe and Leather Bank. Corn Exchange Bank. Central Bank. Continental Bank. Bank of the Commonwealth. Oriental Bank. Marine Bank. Atlantic Bank. SEC. 4. Each Bank belonging to the Association shall be represented at all meetings thereof by one or more of its principal officers, and shall be entitled to one vote. 150 SEO. 5. A general meeting of the Association shall be holden at the Clearing House on the first Tuesday in October in each year, at one o'clock p.m. At every annual meeting a President shall be elected by ballot to preside at that meeting, and all sub- sequent meetings during the year. Whenever he shall be absent, a chairman pro tern, shall be ap- pointed. At the same meeting a Secretary shall also be elected by ballot. SEC. 6. Special meetings shall be called by the Clearing House Committee whenever they may deem it ex- pedient, or whenever they shall be thereto requested by any seven of the Associated Banks. SEO. 7. At all meetings of the Association a quorum for the transaction of business shall consist of a majority of the whole number of Associated Banks. SEO. 8. At every annual meeting a Standing Com- mittee of five Bank Officers shall be elected by the majority, and by ballot, to be called the Clearing House Committee, whose duty it shall be to pro- cure from time to time a suitable room or rooms for the Clearing House ; to provide proper books, stationery, furniture, fuel, and whatever else may be necessary for the convenient transaction of busi- ness thereat ; to appoint a Manager annually, and such clerks as may be necessary ; to establish rules and regulations to be observed at the Clear- 151 ing House in cases not provided for in this Constitu- tion, subject to the approval of the Association, and generally to supervise the Clearing House affairs. This Committee shall have charge of the funds belong- ing to the Association ; shall draw on each bank for its quota of the expenses, and shall also, at the first meeting of the Association after their election submit detailed estimates of the expenditures that will be required for the Clearing House during the current year. AMENDMENT. Passed June &th, 1884. Add to Section 8 as follows : " The Clearing House Committee is also empowered, whenever it shall con- sider it for the interest of the Association, to examine any Bank member of the Association, and to require from any member securities of such an amount and character, as said Committee may deem sufficient for the protection of the balances resulting from the exchanges of the Clearing House." SEC. 9. The salary of the Manager shall always be fixed by the Association. The salaries of the clerks shall be fixed by the Clearing House Committee. The Manager shall give a bond, with sureties in the sum of ten thousand dollars, and each clerk in the sum of five thousand dollars, to be approved by said Committee. SEC. 10. The Manager, under control of the Clearing 152 House Committee, shall have immediate charge of all business at the Clearing House, so far as relates to the manner in which it shall be transacted, and the clerks of the establishment, as well as the settling clerks and porters of the several Associated Banks, while at 'the Clearing House, shall be under his direction. SEC. 11. The Clearing House Committee shall have power to remove the Manager or any of the clerks, whenever, in the opinion of the Committee, the interest of the Association shall require. SEC. 12. The hour for making Exchanges at the Clearing House shall be ten o'clock a.m. precisely. Between the hours of half-past twelve and half-past one o'clock p.m., the debtor Banks shall pay to the Manager of the Clearing House the balances against them, either in actual coin, United States legal tender notes, or in the certificates hereinafter mentioned, except fractional amounts. At half-past one o'clock p.m., or as soon thereafter as the amounts can be made up and proved, the creditor Banks shall receive from the Manager, at the same place, the respective balances due to them, provided all the balances due from the debtor Banks shall have been paid. The Association by a vote of three-fourths of those present, at a meeting called for that purpose, may change the hour for making the exchanges and the settlement of balances. 153 SEC. 13. Should any one of the Associated Banks fail to appear at the Clearing House at the proper hour prepared to pay the balance against it, the amount of that balance shall be immediately furnished to the Clearing House by the several Banks exchanging at that establishment with the defaulting Bank, in proportion to their respective balances against that Bank, resulting from the exchanges of the day, and the Manager shall make requisitions accordingly, so that the general settlement may be accomplished with as little delay as possible. The respective amounts so furnished the Clearing House on account of the defaulting Bank will, of course, constitute claims on the part of the several responding Banks against that Bank ; but, as before stated, the Associa- tion shall in nowise be responsible therefor. SEC. 14. Errors in the exchanges, and claims arising from the return of cheques, or from any other cause, are to be adjusted directly, between the Banks who are the parties to them, and not through the Clearing House, the Association being in no way responsible in respect to them. SEC. 15. Eeclamations for errors and deficiencies in specie or United States legal tender notes received at the Clearing House, contained in bags or packages, sealed and marked in conformity with any rules established upon that subject by the Clearing House Committee, shall be made by (fne o'clock p.m. on the 154 following day by the receiving Bank directly against the Bank whose mark the sealed bag or package bears. Notice of such error sliall be sent to the Bank immediately upon discovery, the Association not being responsible for the contents of such sealed bags or packages. All cheques, drafts, notes, or other items in the ex- changes returned as " not good " or mis-sent, shall be returned the same day directly to the Bank from whom they were received, AND THE SAID BANK SHALL IMME- DIATELY REFUND TO THE BANK RETURNING THE SAME THE AMOUNT WHICH IT HAD RECEIVED THROUGH THE CLEARING HOUSE FOR THE SAID CHEQUES, DRAFTS, NOTES, OR OTHER ITEMS SO RETURNED TO IT, IN SPECIE OR LEGAL TENDER NOTES. But cheques, drafts, notes, or other items to be returned for indorsement or informality may, after being certified by the Bank returning them, be returned through the exchanges the following morning, not exceeding $5,000 in amount to any one Bank. AMENDMENT. Adopted June th, 1884. Add to Section 15 as follows : " In case of the refusal or inability of any Bank to promptly refund to the Bank presenting such cheques, drafts, or other items, returned as not good, the Bank holding them may report to the Manager the amount of the same. And it shall be the Manager's duty, with the approval of the Clearing House Committee, to take from the 155 settling sheet of both Banks the amount of such cheques, drafts, or other items so reported, and to readjust the Clearing House statement and declare the correct balance in conformity with the change so made, provided that such report shall be given to the Manager before one o'clock of the same day." SEC. 16. Every Bank member of the Clearing House Association shall furnish a weekly statement of its condition to the Manager for publication, showing the average amount of 1st. Loans and Discounts. 2nd. Specie. 3rd. Legal Tender Notes. 4th. Circulation. 5 th . Deposits. SEC. 17. The Associated Banks may from time to time appoint one of their own number, or the Assistant Treasurer of the United States at New York, to be a Depositary to receive, in special trust, such coins or United States legal tender notes, as any of the Associated Banks may choose to send to it for safe keeping. The Depositary shall issue certificates in exchange for such coin or United States legal tender notes, in proper form, and for convenient amounts. Such certificates shall be negotiable only among the Associated Banks, and shall be received by them in payment of balances at the Clearing House. Such special deposits of 156 coin or United States legal tender notes are to be entirely voluntary, each Bank being left perfectly free to make them or not at its own discretion. The coin or notes thus placed on special deposit are to be the absolute property of such of the Associated Banks as shall from time to time be the holders of the certificates, and are to be held by the Depositary, subject to withdrawal, on the presentation of the proper certificates, at any time during banking hours. SEC. 18. New members may be admitted into the Association at any meeting thereof. Such new mem- bers shall signify their assent to this constitution in the same manner as the original members, and shall pay an admission according to their respective capitals, as follows : Banks where capital does not exceed $5,000,000 shall pay $5,000. Banks where capital exceeds $5,000,000 shall pay $7,500. Any Bank member of the Clearing House Associa- tion increasing its capital shall pay, in addition to the above, a sum to correspond with these rates. But no new members shall be admitted except by a vote of three-fourths of those present such vote to be taken by ballot. Provided, however, that it shall be competent, by a vote of three-fourths of those present to impose such conditions as the Association may deem expedient at the time of such admission. 157 SEC. 19. A Standing Committee of five Bank Officers shall be appointed at every annual meeting, to whom all application for admission into the Association shall be referred for examination. SEC. 20. For cause deemed sufficient by the Associated Banks, at any meeting thereof, any Bank may be expelled from the Association, and debarred from all the privileges of the Clearing House, provided a majority of the whole number of Associated Banks vote in favour thereof. SEC. 21. A Standing Committee of five Officers of Banks shall be elected at every annual meeting, who, acting in concurrence with the Clearing House Committee, shall have power, in case of extreme emergency, to suspend any Bank from the privilege of the Clearing House until the pleasure of the Association thereupon shall be ascertained. But no such suspension shall take place, unless a majority, at least, of each of these two Committees, shall be present at the ordering thereof, nor unless the vote be unanimous. In case of such suspension, the Clearing House Committee shall forthwith call a general Meeting of the Associa- tion to take the matter into consideration. SEC. 22. Any member of the Association may withdraw therefrom at pleasure first paying its due proportion of all expenses incurred, and signifying its intention to withdraw to the Clearing House Committee. 158 SEC. 23. The expenses of the Clearing House, not includ- ing the expense of printing for the several Banks (which last -mentioned expense shall be apportioned equally), shall be borne and paid as follows : Each Bank shall be assessed two hundred dollars, and the balance necessary after that amount pro raid, accord- ing to the average amount which they shall have sent to the Clearing House for the preceding year. SEC. 24. At every annual meeting a Standing Committee of five Bank Officers shall be appointed, to be called the Committee of Arbitration, whose duty it shall be to hear and determine all disputes that may be submitted to them by both parties thereto, any member of the Association being one. Such Com- mittee shall record a brief abstract of each case referred to them, together with their decision therein, in a book to be provided for that purpose, which book shall be kept at the Clearing House, open to the inspection of all members of the Association. The first Committee shall be appointed immediately upon the adoption of this amendment, and shall serve until the next annual meeting. SEC. 25. Whenever exchanges shall have been made at the Clearing House by previous arrangement between members of the Association through one of their own number, and Banks in the city and vicinity who are not members, the receiving Bank at the Clearing House shall in no case discontinue the arrangement, 159 without giving previous notice, which notice shall not take effect until the exchanges of the morning following the receipt of such notice shall have been completed. SEC. 26. This Constitution, when agreed to by the Asso- sociation at any general meeting thereof, by a majority of votes, shall be submitted to the respective Boards of Directors of the several Banks herein named as members of the Association, for their adoption. When adopted by a majority of the whole number of Banks, it shall be deemed and taken to be in full force and operation. Adoption shall be signified by the signature of the proper Officer of the Bank in two copies hereof one to be kept by the Chairman of the Clearing House Committee, and the other by the Secretary of the Association. A copy of the vote or resolution of the Board autho- rising such signature, shall be deposited with the Secretary. Such Banks as shall not adopt this Con- stitution within two months from the time it is agreed to in general meeting as above mentioned shall, at the expiration of such two months, cease to be members of the Association, provided the Constitution shall then be in operation. SEC. 27. Amendment of this Constitution maybe made at any meeting of the Association by a vote of a majority of all the members thereof, notice of the proposed amendment having been given at a previous meeting. 160 RESOLUTION. Adopted June 28rd, 1857. Eesolved. " That a fine of three dollars be imposed upon every Bank not represented at roll-call at each duly- called meeting of the Association, without reasonable excuse. The fund created by such fines to be appro- priated in such manner as may be directed by the President of the Association." RESOLUTION. Adopted October 2nd, 1860. Eesolved. "Any member of the Clearing House Asso- ciation who shall pay or deliver to any party, other than a member of the said Association, the certificates of deposit of the Clearing House Depositary, shall be subject to a fine of $100 (one hundred dollars)." RESOLUTION. Adopted February 13*7*, 1865. Eesolved. " That no member of the Clearing House Association shall be allowed to make the exchanges for, or redeem the notes or cheques of any other Bank or Banks, not members of the said Association, without first giving notice over the signature of one of its officers of the fact of such redemption, nor shall such redemption be discontinued, but upon notice in manner prescribed by Section 25 of the Constitution." AMENDMENT. Adopted April 26?7t, 1865. " Whenever any member of the Association shall send through the Clearing House the exchanges of 161 any Bank or Banks in the City or vicinity, who are not members, such sending shall ipso facto, and without other notice, constitute said member the agent for said Bank or Banks at the Clearing House ; and said member shall be liable in the premises the same as for its own transactions, and its liability in all such cases shall continue until after the completion of the exchanges of the morning next following the receipt of notice of discontinuance of any such agency." EESOLUTION. Adopted May 23rd, 1866. Retfolced. " That the liabilities of Banks in the Clearing House doing business for Banks in the vicinity are, under the Amendment to the Constitution passed April 26th, 1865, the same as for their own trans- actions." KESOLUTIONS. Adopted September Z6th, 1871. 1st. There shall be chosen yearly at the annual elec- tion a Committee of five members, to be called * The Nominating Committee,' whose duty it shall be to present to the Association at each annual election names of candidates for President and Secretary of the Association, and for members of the three Committees, on the following basis : The President and Secretary shall be eligible for two successive years ; and after an interval of one year shall be again eligible in like manner." 162 2nd. " There shall be selected every year two at least new members on each of the Committees (having still three old members), and those who have been longest on the Committee shall go off first. If all have been on the same length of time, then two shall go off by lot, and after an interval of one year, such members shall be deemed again eligible." KESOLUTION. Adopted April 8th, 1872. Eesolved. " That the Clearing House Committee be and is hereby directed, whenever it appears in its judg- ment that legal tender notes have been withdrawn from use through the agency of any Bank, members of the Association, to make an immediate examina- tion of the Bank in question, and, should there appear to be complicity on the part of the Bank or its officials, to suspend the said Bank from the Clearing House until action of the Association shall be taken thereon." AMENDMENT. Adopted April 25th, 1876. "If vacancies occur in any of the Committees of this Association, the remaining members of the Com- mittee shall have power to fill the same." BESOLUTION. Adopted April '26th, 1882. Resolved. " That, under Section 19 of the Constitution of this Association, the Clearing House Committee may 168 refer all applications for admission to the Committee on Admissions, instead of calling a meeting of the Association for that purpose." AMENDMENT. Adopted October 2nd, 1888. " The President of the Association shall be ex-officio member of all Committees, except the Committee on Nominations." KESOLUTION. Adopted October 14/i, 1890. Resolved. " That on and after January 1st, 1891, this Association permits its members to make such ex- changes only after the consent of the Clearing House Committee shall have been obtained, and the Banks or parties shall have obligated themselves to pay to the Clearing House Association an annual payment of $200, and shall also consent to the same examinations as are now required of its members, provided, how- ever, that nothing contained in this resolution shall be construed as making such banks or parties members of the Association." AMENDMENT. Adopted December 8th, 1892. " Wherever the words ' Chairman of the Associa- tion ' occur, substitute in place thereof ' President of the Association.' " M 2 164 MEMBERS OF THE ASSOCIATION, JAN. IST, 1895. No. 1. Bank of New York, N. B. A. 2. Bank of the Manhattan Co. 3. Merchants' National Bank. 4. Mechanics' National Bank. 6. Bank of America. 7. Phenix National Bank. 8. National City Bank. 10. Tradesmen's National Bank. 12. Chemical National Bank. 13. Merchants' Exchange National Bank. 14. Gallatin National Bank. 15. National Butchers' & Drovers' Bank. 16. Mechanics' & Traders' Bank. 17. Greenwich Bank. 18. Leather Manufacturers' National Bank. 19. Seventh National Bank. 20. Bank of the State of N. Y. tt. American Exchange National Bank. 23. National Bank of Commerce 25. National Broadway Bank. 27. Mercantile National Bank. 28. Pacific Bank. 29. National Bank of the Republic. 30. Chatham National Bank. 31. People's Bank. 32. National Bank of North America. 33. Hanover National Bank. 34. Irving National Bank. 36. National Citizens' Bank. 40. Nassau Bank. 42. Market and Fulton National Bank. 44. National Shoe and Leather Bank. 45. Corn Exchange Bank. No. 47. Continental National Bank. 49. Oriental Bank. 53. Importers' and Traders' National Bank. 54. National Park Bank. 59. East River National Bank. 61. Fourth National Bank. 62. Central National Bank. 63. Second National Bank. 64. Ninth National Bank. 65. First National Bank. 66. Third National Bank. 67. N. Y. National Exchange Bank. 70. Bowery Bank. 71. N. Y.County National Bank. 72. German American Bank. 74. Chase National Bank. 75. Assist. Treas. IT. S. at N. Y. 76. Fifth Avenue Bank. 77. German Exchange Bank. 78. Germania Bank. 79. United States National. 80. Lincoln National Bank. 81. Garfield National Bank. 82. Fifth National Bank. 83. Bank of the Metropolis. 84. West Side Bank. 85. Seaboard National Bank. 86. Sixth National Bank. 87. Western National Bank. 88. First National Bank, Brooklyn 89. Southern National Bank. 90. National Union Bank. 91. Liberty National Bank. 92. New York Produce Ex- change Bank. 165 A PLAN FOR THE CLEARING OP GOLD CHECKS. Adopted February 14(7i, 1872. 1st. The New York Clearing House Association, or any members thereof, may unite for the purpose of clearing checks payable in gold. 2nd. The hour for making the exchanges shall be at 10 o'clock a.m. 3rd. The debtor Banks shall pay to the Manager of the Clearing House, before 12J o'clock p.m., the balances against them, either in coin or in United States gold certificates. 4th. At 12 J o'clock p.m., or as soon thereafter on the same day as the amounts can be made up and proved, the creditor Banks shall receive from the Manager, at the same place the respective balances due to them, provided all the balances due from the debtor Banks shall have been paid. 5th. All rules and regulations contained in the Consti- tution or Bye-Laws of the New York Clearing House Association, or Amendments of or additions thereto, in relation to checks, drafts, or other items in the exchanges, as not good, or mis-sent, or any rules and regulations now applicable to the daily exchanges of currency checks, except such as may conflict with the foregoing sections, shall also apply to the exchanges of checks payable in gold. 166 6th. The adoption of this system shall not prohibit any Bank from presenting gold checks for payment to the Banks on which they may be drawn during the usual banking hours, nor shall such presenta- tion reflect unfavourably on the Bank so presenting. 7th. Any additional expenses incurred by reason of such exchanges shall be borne and paid, pro raid, by the several Banks so exchanging, according to their respective capitals, as now provided by the Constitution of the New York Clearing House Asso- ciation. 8th. The adoption of the above plan shall be signified by the signature of the proper officers of the Banks agreeing to the same to a copy hereof, to be kept by the President of the Clearing House Association ; and no Bank whose signature is affixed thereto shall be at liberty to discontinue making the ex- changes as hereinbefore provided, except on at least twenty-four hours' notice to the Manager of the Clearing House, who shall immediately inform the exchanging Banks of the fact. The system adopted in the House itself seems much the same as that followed in London, and as we have already in a former chapter given a detailed account of the books used and plans practised in the Metropolis, we will not 167 here take up space by recapitulating. When the various Banks have struck their balances, tickets are used, which differ somewhat from those London bankers are accus- tomed to. Let us give specimens. Let us take the Sixth National Bank. If the Sixth National Bank "find at the close of its transactions for the day that it has a debit balance, a form is filled up, as under, printed in black, and signed by the settling clerk (who is empowered to sign on behalf of the Bank), to report his amount to the Proof-clerk of the Clearing House, and is generally handed in about 10.30, or half an hour after the ex- changing begins. It i. merely a memorandum. w i g | No. 86. NEW YORK CLEARING HOUSE, j 189 o Debit SIXTH NATIONAL BANK, Am't rec'd. $ Credit ,, ,, ,, brought $ Debit balance due Clearing House. Cr. bal. due SIXTH NATIONAL BANK, Settling Clerk. This form is retained by the Assistant Manager of the Clearing House, who, in return, hands the clearing clerk a form (also printed in black), duly filled up, as follows : 168 P o W g o I* No. 86. NEW YORK CLEARING HOUSE,_ 189 EECEIVED from the SIXTH NATIONAL BANK, Dollars in full for balance due tlw Associated Banks. Asst. Manager. But when the balance is a credit one in favour of the bank, a slip, printed in blue, is filled up and handed in. No. 86. NEW YORK CLEARING HOUSE, 189 Credit SIXTH NATIONAL BANK, .Settling Clerk. A receipt is also taken for the credit balance paid to the banks before 3 p.m. each day, hi a book kept at the Clearing House for that purpose. Once a week, too, each bank that is an associate of the House has to return the following form, duly filled up, to the presiding manager : 169 COPY OF STATEMENT. OF THE for week ending day of_ as required by Section 16 of the Constitution of the New York Clearing House Association. Average amount of loans and discounts - Average amount of legal tender notes - - Average amount of deposits - Average amount of circulation - - - - NEW YOEK CLEARING HOUSE. Please send a copy of the weekly statement of your Banks to the Clearing House before 12 o'clock TO., on each and every Saturday. WILLIAM SHEEER, Manager. Before we proceed to give a table of figures showing the amount of business transacted, we may be permitted a few general remarks. From a paper * sent to us we take the following extract: "Before the establishment of the Clearing House, it was necessary for each bank every morning to make up its account with every other bank, and to send its porter to present the bills and cheques so received to the debtor banks for payment, * " Commercial World and U. S. Exporter." 170 The balances of the indebtedness were adjusted by pay- ments in gold, which became so laborious, dangerous, and complicated, that the balances were settled only weekly, on Friday, instead of daily a course productive of much evil. This was obviated by the Clearing House system, through which the settlements are so simulta- neously and almost instantly effected, that the transactions adjusted through it have amounted in one day to the prodigious sum of $225,821,422,370, in adjusting which the exchanges were settled in one hour. The establish- ment of the Clearing House system closed 2,500 bank ledger accounts, with numerous daily entries in each, enabled the banks to settle daily with each other without delay or loss, and, with comparatively little trouble, brought each officer into intimate and friendly relations with the others, thus enabling them by united action to aid and strengthen each other in times of financial excitement and danger, and to exert, by their combined power, a salutary influence upon the banking business of the country at large." The following extract is taken from " The History of the New York Stock Exchange, and the London and New York Clearing Houses " : " The first proposition to establish a Clearing House 171 in the City of New York was made by the late Albert Gallatin, President of the National Bank (now the Gallatin National Bank). In a pamphlet (pp. 124), entitled ' Suggestions on the Banks and Currency of the Several United States in reference to the Suspension of Specie Payments,' published in the year 1841, occurs the following paragraphs, viz. : " ' There is a measure which, though belonging to the administration of banks, rather than to legal enactments, is suggested on account of its great importance. Few regulations would be more useful in preventing dangerous expansions of discounts and issues on the part of the City banks than a regular exchange of notes and cheques and an actual daily or semi-weekly payment of the balances. It must be recollected that it is by this process alone that a Bank of the United States has ever acted or been supposed to act as a regulator of the currency. Its action would not in that respect be wanted in any city, the banks of which would, by adopting the process, regulate themselves. It is one of the principal ingredients of the system of the banks of Scotland. The bankers of London, by the daily exchange of drafts at the Clearing House, reduce the ultimate balance to a very small sum, and that bal- ance is immediately paid in notes of the Bank of England. The want of a similar arrangement among the banks of this city, produces relaxation, favours improper expansion, and is attended with serious inconvenience. The principal difficulty in the way of an arrangement for that purpose is the want of a common medium other than specie for 172 effecting the payment of balances. These are daily fluc- tuating, and a perpetual drawing and redrawing of specie from and into the banks is unpopular and inconvenient. " ' In order to remedy this, it has been suggested that a general Cash Office might be established, in which each bank should place a sum in specie, proportionate to its capital, which would be carried to its credit in the books of the office. Each bank would be daily debited or credited in those books for the balance of its account with all the other banks. Each bank might at any time draw for specie on the office for the excess of its credit beyond its quota, and each bank should be obliged to replenish its quota whenever it was diminished one- half, or in any other proportion agreed upon. ' " * It may be that some similar arrangement might be made in every other county, or larger and convenient district of the State. It would not be necessary to establish there a general Cash Office. Each of the banks of Scotland has an agent at Edinburgh, and the balances are there settled twice a week, and paid generally by drafts on London. In the same manner the balances due by the banks in each district might be paid by drafts on New York or any other place agreed upon.' " The above extracts contain a germ of the Clearing House system. They suggest the principal methods now in use, which have proved so advantageous, especially the certificates to be used in the settlements. 173 the want of which was the principal difficulty in the way of a Clearing House at that time. The merit of removing this belongs to Mr. F. W. Edmunds, then Cashier, of the Mechanics' Bank. A year before the organization of the Clearing House he induced the Bank of America, the Merchants', the American Exchange, and the Metropolitan Banks to join the Mechanics' Bank in making up an aggregate sum of one million dollars in coin, for which the last-named institution issued its certificates. These were received by the other banks in payment of balances, and when the depositing banks were creditors they were entitled to a preference in their payment, and were thus saved the trouble of counting, and the risk and burden of carrying coin. These certificates were held as more desirable than coin, on account of the greater facility, expedition, and safety of their transfer. Mr. Edmunds was Chairman of the Committee, under whose direction the Clearing House was organized, his associates being Mr. James Punnett (Cashier, afterwards President of the Bank of America), and Mr. A. E. Silliman (Cashier, afterwards President of the Merchants' Bank). The names of these gentlemen are inseparably connected with the origin and early history of the New York Clearing House. But to Mr. George Curtis, President of the Continental Bank, the author of its Constitution, was conceded by the common voice of his associates, precedency as regards intelligence and ability in regu- lating and administering its powers. 174 " Though not publicly connected with the first move- ments in favour of its establishment, he made it the subject of attentive study, and prepared a plan for the organization at a very early period. His personal influence was particularly exerted in removing objections and bringing the discordant elements of the Association into harmony with its general purpose. Like Mr. Gallatin, he appreciated from the outset all the ad- vantages that would accrue from it to our financial system ; and he was unanimously chosen as Chairman of the Committee on Suspensions, whose duty it was to take cognizance of all short-comings on the part of the different banks. At that time this was the least popular, most important and critical post in the Asso- ciation. It exposed them to the jealousy of the weaker members on one hand, and to censure for a dangerous indulgence on the other, but they exercised their powers with such justice and impartiality, that no instance of appeal from their judgment is on record." On October 3rd, 1853, a Committee, which had been appointed to consider the whole question, reported a plan and secured a Clearing-room at 14, Wall Street. The first exchanges were made on the llth of October, 1853. The first Manager appointed was Mr. George D. Lyman, then a teller in the Bank of North America. He was succeeded in 1864 by Mr. William A. Camp, who for seven years had been Assistant Manager. In 1890, the duties of management devolved upon Mr. William Sherer, who still occupies that important position. 175 RULES. OF THE CLEARING HOUSE ASSOCIATION. 1st. Return of checks, drafts, &c., for informality, not good, mis-sent, guarantee of endorsement, or for any other cause, should be made before three o'clock of the same day. 2nd. Reclamation for errors of any kind, in packages of legal tender notes from the Clearing House, in settlement of balances, should be made before one o'clock on the following day. 3rd. In no case should checks, drafts, &c., be returned through the exchanges, except for informality or endorsement, and then, in each case, they should be certified, and the amount limited to $5,000 to each bank. 4th. In case of a missing item in an exchange, the claim should be made at once, by returning the entire exchange, with a memorandum stating the nature of the claim. 5th. Packages containing legal tender notes, to b used in payment of balances at the Clearing House, should be made up in even amounts of $1,000, $2,000, $3,000, $4,000, $5,000, $10,000, $20,000, $50,000, and $100,000 each, and all notes of a smaller denomination than $500 should be put in packages of not over $5,000. All packages should be sealed and distinctly marked with the name of the Bank, the amount and date. 176 6th. Debit Banks should avoid as much as possible postponing the payments of balances to a late hour, as it sometimes causes serious delay in making up and paying the creditor Banks, at the Clearing House. Our American cousins have set us the lead in one particular, which, by the way, is rather a keen one. They have a scale of Fines. Perhaps the class of men employed in the New York house are of a different nature to our London men, or may be, the idea of fining is simply to ensure care and accuracy. Many of our English clearers will perhaps be amused at the following : SCALE OF FINES In force at the Clearing Home. Fory-five minutes from the hour of commencing, viz., 10 o'clock [a.m., will be allowed for a proof. For all errors remaining undiscovered at 11.15 a.m. the fines will be doubled, and at 12 m. quadrupled. 1st. All errors on the Credit side of the Settling Clerks' statement (i.e., in the amount brought) whether of footing or entry, and all errors caus- ing disagreement between the credit entries, the check tickets, and the exchange slips, each $3.00. 2nd. Errors in making the Debit (i.e., amount received) entries - - . . each $2.00. 177 3rd. Errors in the Tickets reported to the Clear- ing House causing disagreement between the balances and aggregates - - each $2.00. 4th. Errors in footing the amount received - $1.00. 5th. Disorderly conduct of Clerk or Delivery Clerk at the Clearing House, or disregard of the Manager's instructions - each offence $2.00. 6th. Clerk or Delivery Clerk failing to attend punctually with statements and Tickets com- plete at the morning exchanges - - each $2.00. 7th. Debtor Banks failing to appear to pay their balances before 1.30 p.m. - $3.00. 8th. Errors in delivery or receipt of exchanges each $1.00. HOLIDAY LAWS. AN ACT (Amended by Act passed May llth, 1895) To FURTHER AMEND CHAPTER TWENTY-SEVEN OF THE LAWS OF EIGHTEEN HUNDRED AND SEVENTY-FIVE, ENTITLED AS AMENDED BY CHAPTER THIRTY OF THE LAWS OF EIGHTEEN HUNDRED AND EIGHTY-ONE, " AN ACT TO DESIGNATE THE HOLIDAYS TO BE OBSERVED IN THE ACCEPTANCE AND PAYMENTS OF BILLS OF EXCHANGE, BANK CHECKS AND PROMISSORY NOTES, AND EELATING TO THE CLOSING OF PUBLIC OFFICES." 178 The People of the State of ^ r ew York, represented in Senate and Assembly, do enact as follows : Passed May 6, 1887 ; three-fifths being present. SEC. 1. Section one of chapter twenty-seven of the laws of eighteen hundred and seventy-five, entitled, as amended by chapter thirty of the laws of eighteen hundred and eighty -one, " An Act to designate the holidays to be observed in the acceptance and pay- ment of bills of exchange, bank checks, and pro- missory notes, and relating to the closing of public offices," is hereby further amended so as to read as follows : 1. The following days and half-days, namely: The first day of January, commonly called New Year's Day ; the twelfth day of February, known as Lincoln's Birthday ; the twenty-second of February, known as Washington's Birthday ; the thirtieth day of May, known as Decoration Day ; the fourth day of July, called Independence Day ; the first Monday of September, to be known hereafter as Labor Day ; the twenty-fifth day of December, known as Christmas Day ; any general election day in this State : every Saturday from twelve o'clock at noon until twelve o'clock at midnight, which is hereby designated a half-holiday ; and any day appointed or recommended by the Governor of this State, or the President of the United States, as a day of Thanksgiving, or fasting and prayer, or other religious observance, 179 shall, for all purposes whatever as regards the presenting for payment or acceptance, and of the protesting and giving notice of the dishonor of bills of exchange, bank checks, and promissory notes made after the passage of this Act, be treated and considered as the first day of the week commonly called Sunday, and as such public holidays or half-holidays ; and all such bills, checks, and notes otherwise presentable for acceptance or payment on any of the said days shall be deemed to be payable and be presentable for .acceptance or payment on the secular or business day next succeeding such holiday ; but in the case of a half-holiday shall be presentable for acceptance or payment at or before twelve o'clock noon of that day. Provided, however, that for the purpose of protesting, or otherwise holding liable any party to any bill of exchange, check, or promissory note, and which shall not have been paid before twelve o'clock at noon on any Saturday, a demand of acceptance or payment thereof may be made, and notice of protest or dishonor thereof may be given on the next succeeding secular or business day. And provided, further, that when any person shall receive for collection any check, bill of exchange, or promissory note, due and present- able for acceptance or payment on any Saturday, such person shall not be deemed guilty of any neglect or omission of duty, nor incur any liability in not presenting for payment or acceptance, or collection such check, bill of exchange, or promissory note on N 2 180 that day. And provided, further, that in construing this section every Saturday, unless a whole holiday as aforesaid, shall until twelve o'clock noon be deemed a secular or business day. And the days and half-days aforesaid shall be considered as the first day of the week, commonly called Sunday, and as public holidays or half-holidays, for all purposes whatsoever as regards the transaction of business in the public offices of this State or Counties of this State. On all other days, or half-days, except Sundays, such offices shall be kept open for the transaction of business. SEC. 2 Section two of said Act is hereby amended so as to read as follows : 2. Whenever the first day of January, the twelfth day of February, the thirtieth day of May, the fourth day of July, or the twenty-fifth day of December shall fall upon Sunday, the next Monday following shall be deemed a public holiday for all or any of the purposes aforesaid ; provided, however, that in such cases all bills of exchange, checks, and promissory notes made after the passage of this Act which would otherwise be presentable for acceptance or payment on said Monday shall be deemed to be presentable for acceptance or payment on the secular or business day next succeed- ing such holiday. SBO. III. This Act shall take effect on the tenth day after its passage as certified by the Secretary of State. 181 Though the Americans have advanced with rapid strides on the path of progress, and are extending and ramifying in all directions, they can still with advantage take a retrospective glance and notice whence their clear- ing system first sprang, and on what lines it has been running. Undoubtedly we have reason to be proud of our system, for as " imitation is the sincerest flattery," so the fact of our example having been followed to such a great extent shows on the face of it that it must be worth something. There i one great step for the bankers of New York to take ere they consider themselves on an equal platform with the bankers of London and else- where who boast a Clearing House. They must adopt the London plan, and make one bank the medium the banker of all the other banks. At this bank, if every bank in the Clearing House keep an account, all balances can be settled, and all differences cleared up, merely by a transfer, without the use of a single coin or note. TTBR7, OF THE UNIVERSITY OF BOOKS FOR BANKERS. A HISTORY OF THE BANKING OF ALL NATIONS. 4 Vols. Royal 8vo, Morocco, Cloth sides. Price for the complete work, 5. Single Volumes are not sold. VOL. I., pp. 486, contains the History of Banking in the United States. By WILLIAM G. SUMNER, Professor of Political Economy, Yale College. VOL. II., pp. 496, contains (1) the History of Banking in Great Britain. By HENRY DUNNING MACLEOD, the eminent English Economist. (2) The History of Banking in Russia. By ANT. E. HORN, late Editor of the Journal of St. Petersburg. (3) The History of Savings Banks in the United States, By JOHN P. TOWNSEND, President of the Bowery Sav- ings' Bank of New York. VOL. III., pp. 514, contains the History of Banking in the Latin Nations (viz. France, Italy, Belgium, Spain, Switzerland, Portugal, and Rou- mania). By PIERRE DES ESSARS, Chief of Bureau of Statistics and Economics of the Bank of France. The Banks in Alsace-Lorraine after the Annexation. By ARTHUR RAFFALOVIOH, Correspondent de 1'Institut de France. The History of Banking in Holland. By Professor Dr. RICHARD VAN DER BORGHT, Aix-la-Chapelle. VOL. IV., pp. 600, contains the History of Banking in Germany and Austria- Hungary. By MAX WIRTH, the eminent Austrian economist. The History of Banking in the Scandinavian Nations. By ADOLPH JENSEN, Secretary of the Statistical Laboratorium, University of Copenhagen. The History of Banking in Canada. By BYRON E. WALKER, President of the Canadian Banking Association. The History of Banking in China. By THOMAS R. JERNKJAN, United States Consul - General, Shanghai. The History of Banking in Japan. By JINICHI SOYEDA, Secretary and Counsellor in the Imperial Ministry of Finance, Japan. BANKS AND BANKING. By H. T. EASTOX. Price 3s. Qd. EFFINGHAM WILSON, 11, Royal Exchange, London. BOOKS FOR BANKERS. ATTFIELD, J. B. English and Foreign Banks : a comparison. Contents : The Constitution of Banks ; The Branch System ; The Functions of Banks. Price 3*. 6d. net. BOOTH, A. A,, and M. A. GRAINGER. Diagram for calculating the yield on Redeemable Stocks. Price 10 s. 6d. net. By means of a small ruler and a table of lines, the true yield on a bond or stock purchased at a given price which is redeemable either at or above par, can be obtained at once without calculation of any kind. CUTHBERTSON CLIVE, B.A. A Sketch of the Currency Question. Price 2s. net.. " An admirable resume of the controversy between monometallists and bimetal- lists." Times. DEL MAR, ALEX. History of the Monetary Systems in the various States. Price 15s. net. The Science of Money. Second Revised Edition. Demy 8vo. Price 6s. net. GIBBS, Hon. HERBERT. A Bimetallic Primer. Third Edition, revised. Price 1*. net. GOSCHEN, the Right Hon. GEO. J., M.P. Theory of Foreign Exchanges. Sixteenth Edition. One Volume, 8vo. Price 6*. HANKEY, THOMSON. Principles of Banking ; its Utility and Economy ; with Re- marks on the Working and Management of the Bank of England. By a Director and formerly Governor of the Bank of England. Fourth Edition. Revised as regards the Working and Management of the Bank by CLIFFORD WIGRAM, Esq., a Director of the Bank. Price 2s. 6d. HAUPT, OTTOMAR. Arbitrages et Parites. TraitS des Operations de Banque, con- tenant les usages commercial! x, la theorie des changes et monnaies, et la sitatistique monetaire de tous les pays du globe. Huitieme edition. Price 12s. 6d. net. EFFINGHAM WILSON, 11, Royal Exchange, London. BOOKS FOR BANKERS. HUTCHINSON, JOHN. Practice of Banking; embracing the Cases at Law and in Equity bearing upon all Branches of the Subject. Volumes II. and III. Price 21s. each. Vol. IV. Price 15s. JOURNAL OF THE INSTITUTE OF BANKERS- Monthly, Is. 6d. PHILLIPS, MABERLY. A History of Banks, Bankers, and Banking in Northumber- land, Durham, and North Yorkshire, illustrating the commercial deve- lopment of the North of England from 1755 to 1894. With numerous Portraits, Fac-similes of Notes, Signatures, Documents, &c. Price 31s. 6d. QUESTIONS ON BANKING PRACTICE. Eevised by and issued under the sanction of the Council of the Institute of Bankers. Fourth Edition. Price 5s. VAN DE LINDE, GERARD. Bookkeeping. Part I. Journal, Cash Book, and Ledger, leading up to Trial Balances. PAKT II. Balance-Sheet, Profit and Loss Companies' Accounts. PART III. General Banking. Part IV. Colonial and Foreign Banking. Price 3s. 6d. VAN OSS, S. F. Stock Exchange "Values: a Decade of Finance, 1885-1895. Containing Original Chapters with Diagrams and Tables, giving Re- views of each of the Ten Years 1884-1894 Trade Cycles The Course of Trade 1884 to 1894 Silver New Capital Created 1884 to 1894 The Money Market, 1884 to 1894 Government and Municipal Securities Colonial Securities Foreign Government Securities Home Railway Stocks American Railways Foreign and Colonial Railways and Miscellaneous Securities. Together with Charts showing at a glance prices of principal securities for past ten years, and Highest and Lowest prices year by year (1885 to 1894 inclusive) of every security officially quoted on the Stock Exchange, with dates and extreme fluctuations (ex- tending to over 200 pages of Tables), compiled by FEEDC. C. MATHIESON & SONS. Price 15s. net. " An unusually interesting chronicle of financial events during the l?st ten yeare We have not anywhere come across one so concise and yet so complete.' 1 Atket.aitm. EFFINGHAM WILSON, 11, Royal Exchange, London. LONDON AND SOUTH WESTERN BANK, LIMITED. Authorised Capital, 3,000,000. Subscribed Capital, 1,500,000, in 30,000 Shares of 50 each. Paid-up Capital, 600,000. Reserve Fund, 240,000. Directors. Lt.-Col. GEORGE A. ELLIOT. WILLIAM FRANKLIN, Esq. W. M. MACKENZIE, Esq. GEORGE N. MARTEN, Esq. C. W. PRESCOTT-WESTCAR, Esq.. J.P. HENRY WETHERED, Esq. General Manager : GEORGE T. GOODINGE. Assistant Managers : Chief Inspector of Branches. F. LUBBOCK JERMYN. | ALFRED WALLIS. JOHN WILLIAMS. Head Office : 168, 169, 170, & 171, FENCHURCH STREET, B.C. Acton. Chelsea. (Rd.) Forest Hill. New Cross Gate. Sutton. Addiscombe. Chelsea (King's Hackney. Netting Hill. 1 Sydenham. Anerley. Chiswick. Hammersmith. Oxford Street. i Tooting. Balliam. Clapham. Hampstead. Peckham. I Tulse Hill. Barking. Clapham Junctn. Hanwell. Pimlico. : Upper Norwood. Barnes. Clapton. Harlesden. PoDlar. Upper Park, E. Battersea. Croydon. Harrow Road. ! Putney. I S.W. Vauxhall. Battersea Park. Dulwich. Hendon. i 27. Reeent Street. Walham Green. Bermondsey. | Baling. j Highgate. St. John's Wood. Wallington. Bloomsbury. Ealiner Dean. , Holloway. i St. Marvlebone. Walthamstow. Bow. Earl's Court and Hornsey. Shepherd's Bush. : Walworth. Brixton Hill. Kensington. Kentish Town. : Shoreditch. 1 Wandsworth. Brixton, North. Finchley, Church Kilburn. South Hampstead Wanstead. Brixton, South. End. Lavender Hill. South Norwood. WestBrompton, Brondesbury. Camberwell. Finchley, East. Finsbury. Leyton, MUe End. Stepney. Stockwell. West Kensington. West Norwood. Camden Town. Finsbury Park. Mortlake. Streatham. Willesden Green. Catford. Fleet Street. New Barnet. Streatham Com n - 1 Wimbledon, rmon Charlton. Forest Gate. New Cross. Stroud Green. Wimbledon Com- COUNTRY BRANCHES. Brighton. Bristol. Honiton. Kingston-on-Thames. Ottery St. Mary. Sidmouth. Current Accounts are opened on the terms usually adopted by Bankers. In cases where a remunerative balance is not maintained, a small charge for commission is made. Deposits of ^10 and upwards are received, subject to seven days' notice of withdrawal, and interest is allowed thereon at the rate advertised by the Bank in the London newspapers from time to time. Customers may pay in at any of the numerous Offices of the Bank for the credit of their Accounts at Head Office, or at any Branch. The Agency of Country and Foreign Banks is undertaken, and every description of Banking business is transacted. Investments and Sales of all descriptions of British and Foreign Securities, &c., are effected, and Dividends and Military and other Pay and Allowances are received. Ample Strong Room accommodation provided for custody of Securities. Plate, &c. Drafts on Demand, Circular Notes, and Letters jof Credit, payable at the principal Towns abroad, are issued. The Officers and Clerks of the Bank are bound not to disclose the transactions of any of its customers. (Dlfc FOE HISTORY OF Urinate READ SOMME OLDE CURIOSITIES. BY A KNYGHTE OFFE Y E QUILLE. Price, Paper Covers, I/- ; Cloth Gilt, Lettered, 2/6. CHAPTER I. EARLY BANKING. II. THE GOLDSMITHS. III. REGAL TYRANNY. IV. QUESTIONABLE REPARATION. V. OLD HOUSES. THE THREE CROWNS." - MESSRS. COUTTS & Co. THE MARYGOLD." - MESSRS. CHILD & Co. VIII. "THE GRASSHOPPER." MESSRS. MARTIN & Co. ix. MESSRS.SMITH,PAYNE,& SMITHS. VI. VII. CHAPTER X. MESSRS. BARCLAY, BEVAN, TRITTON. RANSOM, BOU- VERIE, & Co. XL MESSRS. GLYN, MILLS, & Co. XII. MESSRS. FULLER & Co. XIII. MESSRS. ROBARTS, LUBBOCK, & Co. XIV. MESSRS. BOSANQUET, SALT, & Co. ; WILLIS, PERCIVAL, & Co. ; GOSLINGS, SHARPE, & Co. XV. THE BANKERS' CLEARING HOUSE. XVI. ODDS AND ENDS. London: EFFINOHAM WILSON, 11 Royal Exchange. Invaluable to all Bank Directors and Managers. BflliflflCE-SHEETS." (30th JUNE, 1896) (Tabulated in Handy Form) BY WILLIAM HOWARTH, F.R. Hist. 8., F.S.8. " Useful analytical Table of the various banks throughout the United Kingdom." Bankers' Magazine. " Very useful and comprehensive." Imperial Institute Journal. " . . in chart form, the balance-sheets of all the principal hanks in England, thus showing at a glance their positions on the 30th June last." Daily Telegraph. "We have received a copy of 'Bank Balance Sheets,' by Mr. W. Howarth, F.RHist.S., F.S.S., showing in an admirably tabulated form full particulars of all the leading London Clearing, Private, and Joint- Stock Banks, including many details which, we venture to say, have never before been arranged in such a convenient form for reference purposes. Considering the eccentric way in which many banks draw up their balance-sheets, Mr. Howarth may be congratulated on the success- ful manner in which he has elucidated their main features. " BuUionist. " Mr. Howarth's tables exhibit the position of the banking trade, throughout the country at June 30. The banks are divided into three groups the London Clearing Banks, Private Bankers, and Joint Stock Banks. The items of the balance sheets are displayed in columns." Capitalist. " A very great amount of work must have been expended in making up these elaborate tables." Financial Times. " Invaluable to all bank managers and directors. " Financial Post. " The list of banks dealt with is very comprehensive." Rialto. "OUR CLEARING SYSTEM & CLEARING HOUSES." BY W. HOWAKTH, F.B.HisT.S., &c. (Author of " History of Greenwich," reing and McCutcheon's General Commercial and Mining Telegram Code. Comprising 274,000 Words and Phrases. Price 5 5s. net. >reing and NeaTs General and Mining Code. For the Use of Mining Companies, Mining Engineers, Stock- brokers, Financial Agents, and Trust and Finance Companies. Price 21s. Bcial Vocabulary in Terminational Order. Price 40s. net. ie-word "Firm Offer" Telegraphic Code with One- word " 5 Offers " Reply Code. Price ?,. od. ott's Shipowners' Telegraphic Code. New Edition. 1896. Price 21s. ockbrokers' Telegraph Code. Price 5s. net. atkins' Ship-broker's Telegraph Code. Price 4 net. Two copies, 7 net. hitelaw's Telegraph Cyphers. 338,200 in all. 400,000 Cyphers in one continuous alphabetical order. Price '12 10s. 202,800 words, French, Spanish. Portuguese. Italian and Latin. Price .... 150s. each net. 53,000 English words 50s. ,, 42,600 German 50s. 40,000 Dutch 50i - " S38.200 88,400 Latin, etc., etc. (Original Edition), in- cluded in the above 202,600 . 60s. ,, 25000 English (Original Edition), included in the above 53,000 40*. 22,500 of the English words arranged 25 to the page, with the full width of the quarto page for filling in phrases. . 60*. ,, ,, 14,400 of the Latin words arranged so as to represent any 3-letter group, or any three 2-figure groups up to 24 . . 15s. ,, ,, fillink's Public Companies' Telegraph Code. Price 12$. &/. net. Medium 4to, 500 pp. Cloth, price 10s. 6d. act. THE PREMIER CYPHER TELEGRAPHIC CODE Containing close upon 120,000 Words and Phrase: THE MOST COMPLETE AND MOST USEFUL GENERAL CODE YET PUBLISHED. COMPILED BY WILLIAM H. HAWKE SOME OPINIONS OF THE PRESS. ' It is calculated to save expense by making one word do the duty of two to fi words as compared with other codes, without trouble or loss of time. This result h been obtained by introducing novel and simple methods of tabulation. The scope of t code is a very wide one, and makes it suitable to the traveller as well as to the coi mercial man." Telegraph. " Is distinguished among books of its kind by the unusual width of its range. F the rest it is a careful work, which keeps constantly in view the practical needs of m of business." Scotsman. " The Code is certainly a marvel of comprehensiveness, and at least the translati of messages would appear to be easy, owing to the system of initial words and crc references embodied in it, and the conspicuous headings." Manchester Guardian. "An extremely valuable cypher telegraphic code. The saving of expense is, course, the primary object of a code ; but another consideration with Mr. Hawke h been to arrange a code so that what is required to be transmitted can be sent with t least possible trouble and waste of time." Financial News. " This compilation is excellent in choice of messages and simplicity of arrangemei Those who have had to deal with other codes will appreciate this point. Particulai admirable are the joint tables for market reports, which can give quotations and tone one word. What with careful indexing to the matter and ingenious simplicity th code is certainly one of the best we have yet seen." Shipping Telegraph, Liverpool. " Undoubtedly the finest code that has yet been published, despite the fact that also ranks among the cheapest."- Journal of Finance. "An Vollstandigkeit diirfte es von anderen Werke gleicher Art kaurn iibertrofl werden." Frankfurter Zeiiung " The systems of tabulation are simple, and the general appearance of the volur seems to confirm the claim that this is by far the most complete code ever issued.' Tribune, Chicago. " Mr. Hawke's long experience as an expert in telegraphic code systems is a fi guarantee of the excellence of the ' Premier Code'." Liverpool Courier. Now ready. Cloth, price 10s. 6d. net. 100,000 WORD SUPPLEMENT T< THE PREMIER CODE COMPILED BY WILLIAM H. HAWKE. For special tables for Offers, Buying, Selling, etc., the words number* from 00,000 to 99,999 ; the words do not clash with those in the Premier Co< biit are supplementary to them ; 2440 additional words are for indicating, catch words, a ad special or temporary tables. LONDON : EFFINGHAM WILSON, ROYAL EXCHANGE. LLOYDS BANK LIMITED. NOMINAL CAPITAL, in 240,000 Shares of 50 each 12,000,000. SUBSCRIBED CAPITAL 11,125,000. PAID-UP CAPITAL, 222,500 Shares, 8 Paid 1,780,000. BESEEVEDFUND 1,000,000. DIRECTORS. THOMAS SALT, Esq., Chairman. J. SPENCER PHILLIPS, Esq., Dtputy-Ck CHARLES EDWARD BARNETT. Esq. SAMPSON SAMUEL LLOYD, Esq. WALTER RANDOLPH FARQUHAR, Esq. EDWARD BRODIE HOARE, Esq., M.P. JOSEPH SCRIVENER KEEP, Esq. J. ARTHUR KENRICK, Esq. GEORGE BRAITHWAITE LLOYD. Esq. RICHARD BORRADAILE LLOYD, Esq. JOHN CHARLES SALT, Esq. AUGUSTUS WILLIAM SUMMERS, Eiq. RICHARD VASSAR VASSAR-SMITH. Eq- GEORGE DUNBAR WHATMAN. Eiq. WILLIAM DE WINTON, Esq. ROBERT WOODWARD, Esq. Giniral Manager HOWARD LLOYD. PLACES OF BUSINESS. Head Offlce-BIRMINGHAM. Registered Offlce-72, LOMBARD STREET, LONDON, E.G. LONDON. City j 2 , Lombard Street, E.C. Wttt Bnd Law Courts, 222 to 225, Strand, W.C.; 16, St.jjames's Street, S.W. PmJteo 33, Belgrave Road, S.W. Wttt Kentinaton34, Hammersmith Road, W. BamftteatL- 13 and 14, High Street, N.W.; Finchley Read, N.W. BIRMINGHAM. Colmore Row. High Street. Temple Row. New Street. Aston Road. Bristol Street. Deriten'd Edgbaston. Gooch Street. Great Hampton Street. Jamaica Row. Sparkbruok. Aberdare. Abergavenny. Atherstone. Barry Docks. Bath. Brecon. Bridgnorth. Brighton. Bristol. Stokes Croft, Bristol. St. Philips, Bristol. Temple Gate. Bristol. Broadstairs. Bromsgrove. Broseley. Burton- on-Trent. Caunock. Cardiff. Bute Docks, Cardiff. Cardigan. Carmarthen. Caterham Valley. Chel- tenham. Cinderford. Clifton (near Bristol). Coventry. Darlaston. Dartmouth. Deal. Dover. Dowlais. Droitwich. Dudley. East Grinstead. Edenbridge. Ellesmere. Enfield. Evesham. Fenton (Staffs.) Fishponds. Folkestone. Gloucester. Great Bridge. Halesowen. Handsworth. Hanley. Harborne. Hastings. Haver- fordwest. Hereford. Horley. Iron Bridge. Kidderminster. Kingsbridge. Kingswood (near Bristol). Leamington. Leicester. Lcominster. Lichfietd. Llanelly. Longton. Ludlow. Maidstone. .Malvern. Margate. Merthyr Tydfil. Momuouth Moseley. Newcastle (Staff.). Newnham. Newport (Mon.). Newport (Salop). Northampton. Nottingham. Alfreton Road, Nottingham. Oklbury. Oswestry. Paignton. Pontypool. Pontypridd. Presteigne. Ramsgate. Redditch. Ross. Rugby. Rugeley. Rye. St. George's (near Bristol). St. Leonard's-on-Sea. Shitnal. Sliipston-on-Stour. Shrewsbury. Smethwick. Solihull. Stafford Staple Hill (near Bristol). Stratford-on-Avon. Stroud. Sutton Coldfield. Swansea. Tamworth. Tenbury. Tonbridge. Torquay. Tunbridge Wells. Walsall. Warwick. Wednesbury. WeUington. (Salop). Welshpool. West Bromwich. Westgate-on-Sea. Whitchurch (Salop). Willenhall. Wolrerhampton Worcester. SUB-BRANCHES AND AGENCIES. Abercynon. Albrighton. Alvechurch. Astwood Bank. Bargoed. Bexhill. Bidford. Birchington-on- Sea. Blackwood. Bloomsbury, Birmingham. Bloxwich. Brewood. Caerphilly. Cleobury-Mortimer. Coleshill. Craven Arms. Dawley. Dudley Road, Birmingham. Eccleshall. Erdington. Ferndale Fishguard. Godstone. Hednesford. Hirwain. Kenilworth. Kidwelly. Kineton. King's Norton. Ladywood, Birmingham. Llandyssul. Llantrissant. Loughborough. Lydd. Madeley. Malvern Link. Malvern Wells. Melton Mowbray. Montpellier, Cheltenham. Mountain Ash. Much Wenlock. Netherfield (near Nottingham). Newbridge. Newcastle Emlyn. Newport (Pembroke). New Romney. Oakengates. Oxted. Pantiles. Tunbridge Wells. Pembrey (Burry Port). Penarth. Penkridge. Pentre. Pershore. Forth. Repton. St. David's. St Leonard's-on-Sea (Marina). Salcombe. Selly Oak. Small Heath. Birmingham. Southam. Southberough. Stirchley and Bournrille. Tenterden. Tonypandy. Treharris. Weobley. Whitland. RETURN CIRCULATION DEPARTMENT TO*- 202 Main Library LOAN PERIOD 1 2 3 HOME USE 456 ALL BOOKS MAY BE RECALLED AFTER 7 DAYS DUE AS STAMPED BELOW ^ < Si -J r V a? u - OC S- -J 6i O fid ik 4 * z 2 UNIVERSITY OF CALIFORNIA, BERKELEY FORM NO. DD6, 60m, 1/83 BERKELEY, CA 94720 LD 21-95m-7,'37 \ NT. YB 16147 Chatwood's " Invincible Patent "Solid Steel" SAFES. Strong Rooms and Doors. (76, NEWGATE STREET, LONDON, E.G.; A u, CROSS STREET, MANCHESTER; ' BASINGHALL STREET, LEEDS; And 120, IRONQATE, GLASGOW. WORKS LANCASHIRE SAFE AND LOCK WORKS, BOLTON, These are the only Safes in the world solid at all the eight comers, I i II jj Ijjj il ili 111 ijjjiijji 'il !i }' '!v H| iJH lliiiilli ' I tire