that the clearings of the London Clearing House, the next most important to the New York Clearing House, amount annually to about $20,000,000,000. But not only has the Clearing House been useful in the discharge of its ordinary business of effecting clearances, but on account of the respect and confidence in its methods and management, inspired by its conservatism, it has been able at least three times within the last twenty years to come to the aid of the banks, and incidentally to that of the public, and to either avert or greatly ameliorate the severity of a money panic by the issuance of certificates against collateral acceptable to a committee appointed by it. These certificates were issued to the extent of 75 per cent. of the usual market values of the securities held by such committee as collateral to their issue, and were used in the settlement of the daily balances between its members, and, of course, released just that amount of money into circulation and to that extent relieved the stringency of the money market. Such certificates were issued in 1890 to the extent of $15,000,000, about the time of the embarrassment of the Barings, when the money markets of the whole world were more or less convulsed. The denominations of these certificates were five, ten, and twenty thousand dollars. They were all taken up within five months after their issue. Another issue of certificates to the amount of $41,000,000 was made on June 15, 1893, which was all retired by November 1st of the same year. The following is a copy of one of these certificates: [On the back of the certificate is the printed inscription :] Paid to the Clearing House By........ FIVE THOUSAND DOLLARS. No...... $5000. LOAN COMMITTEE OF THE NEW YORK This certifies that the............ has deposited with this committee securities in accordance with the proceedings of a meeting of the Association, held November 11th, 1890, upon which this certificate is issued. This certificate will be received in payment of balances at the Clearing House for the sum of Five Thousand Dollars, from any member of the Clearing-House Association. On the surrender of this certificate COMMITTEE. The government of this institution is entrusted to its principal committee, the Clearing-House Committee, which is composed of members elected by the various banks of the association. This committee has the executive management of all matters pertaining to the association. The next most important committees are the Arbitration, the Conference, and the Admission Committees. The executive management of the Clearing House is in charge of Mr. William Sherer, the present able manager, and a staff of assistants. CHAPTER VI. Savings Banks. SAVINGS banks, so named from the fact that they are designed to be the depository of savings, rather than of general accounts subject to immediate check. These banks, with the exception of those in the District of Columbia (which are necessarily organized under the Federal Laws), are organized and exist under the laws of the States in which they are located. As these banks are the custodians of the surplus earnings above the immediate necessities of their depositors and often represent their entire available assets, the laws of this State, in particular, have thrown around them numerous safeguards, not only for the protection of the depositors, but of the institutions themselves. The law is so exhaustive in its treatment of the class and kind of security on which savings banks may make loans or invest their moneys, that it is impossible to give more than a brief résumé. In the matter of the regulations under which moneys are received, interest paid or credited to the depositors' accounts, loans effected, etc., the constitution and by-laws of the institution often govern in the practicable workings, but the constitution and by-laws are always subject to the rules laid down in the statute law. Article III. of the Banking Laws of the State of New York pertains to savings banks and prescribes (Section 100) that thirteen or more persons, two thirds of whom shall be residents of the county where the proposed bank shall be located, may become a savings bank by executing a certificate in duplicate, one copy of which shall be filed in the office of the Clerk of such County, and the other in the office of the Superintendent of Banks within sixty days after its acknowledgment, setting forth: 1. The name by which the corporation shall be known. 2. The place where its business is to be transacted, designating the particular city, village, or town, and if in a city, the ward therein. 3. The name, residence, and, if in a city, the street and number, occupation and post-office address of each member of the corporation. 4. A declaration that each member of the corporation will accept the responsibilities and faithfully discharge the duties of a trustee in such corporation when authorized according to the provisions of law. It is necessary that a notice of intention to organize shall be published at least once a week for four weeks previous to filing such certificate in at least one newspaper of the largest circulation published in the city, village, or town in which such bank is proposed to be located, or if no newspaper is published therein, then some newspaper published in the county, or if none is published in the county, then in a newspaper published in the adjoining county. This notice shall specify the names of the proposed incorporators, also the name of the bank and the location of the same. A copy of such notice shall be sent to every savings bank doing business in such county at least fifteen days before the filing thereof. If the above regulations have not been complied with to the satisfaction of the Superintendent, he shall refuse to file such certificate until it shall be amended in conformity with the provisions of the law and the regulations thereof complied with, but if such regulations have been complied with and the certificate is accompanied with satisfactory evidence of the proper publication and service in good faith of such notice, he shall forthwith endorse the same over his official signature "Filed for Examination" with the date of such endorsement. The Superintendent shall thereupon ascertain from the best sources of information at his command whether greater convenience of access will be afforded depositors by opening a savings bank in the place designated, whether the population in the neighborhood designated affords a reasonable promise of adequate support to the enterprise, and whether the responsibility of the persons named in the certificate is such as to command the confidence of the community in which such savings bank is proposed to be located. If the Superintendent shall be satisfied that the organization of the savings bank will be a public benefit, he shall, within sixty days after the same has been filed by him for examination, issue a certificate to the persons named in such certificate authorizing them to open an office for the deposit of savings as designated in the certificate. Such certificate shall be filed in the office of the County Clerk of the County in which the savings bank is to be located; and the Superintendent of Banking shall also file a duplicate of such certificate in his own office. If the Superintendent shall not be satisfied that the establishment of a savings bank is expedient and desirable, he shall, within sixty days after the filing thereof, give notice to said County Clerk that he refuses to issue a certificate, which notice shall forthwith be filed by the County Clerk with the certificate of incorporation of such savings bank. Upon the filing of any certificate of authorization the persons named therein and their successors shall thereupon become and be a corporation vested with all the powers and charged with all the liabilities conferred and |