CLEARING-HOUSE, in banking. In New York, Philadelphia, Chicago, Cincin nati, and other large' cities of the United States, clearing-houses have been for several years in successful operation. Either a well-known bank or a special building is used for the purpose. The best equipped and most admirably arranged clearing-houses are those of New York and Philadelphia. The room for this business is provided with separate numbered desks for a representative of each bank, and a raised dais for the manager of the clearing-house. Each bank belonging to the system is represented by two clerks, one of whom takes his place at his special desk, and the other stands in front to act as messenger. Usually at 8.30 A.M., the clearing-house manager calls to order, and with the utmost regularity the business of the hour proceeds. The messenger receives from his clerk packages intended for other banks, and moving from left to right visits each desk, leaving with the entering clerk such matters as lie may have for him, together with a complete list of his transactions. Should all be correct, the clerks then return to their respective banks with sMtements of debits or credits—which must be settled with the clearing-house on the same morning. Should any errors be discovered, the clerks are not allowed to leave the clearing-house until they have been rectified, and in some instances fines are imposed and collected from the banks represented by the offending clerk. Complete records of all business therein transacted are preserved at the clearing-house. Thus transactions which formerly required many hours, are completed in a few minutes at a great saving of expense. The amounts transferred in some of the clearing-houses repre sent many millions of dollars daily. The New York clearing association commenced its operations on Oct. 11, 1853, numbering as members 52 banks, representing a capital of $40,721,262.50. The number was soon reduced to 48 by the retirement and closing up of four, in consequence of their inability to meet its requirements, reducing the aggre gate capital to $45,118,800. On the 1st of June, 1870, the association consisted of 50 members, including the assistant treasurer of the United States at New York. The aggregate capital of the banks of the city was $83,508,800, with a surplus of $27,264,100, a reduction of capital and surplus in less than six years of $36,934,000, caused. in the
opinion of bankers, principally by unequal and excessive tax under both federal and state laws. The transactions of the first day, Oct. 11, 1853, amounted to $23,938,682.25. Total transactions since its organization to June 1,'79, amounted to $520,110,047,756.40, a daily average, during 25 years and 71 months, of $67,545,262.26. The highest daily average for any one year was for that Oct. 1, 1869, viz., $125,088, 789.91. The total transactions for that year were $38,527,347,294.42. The total transactions for the year ending June 1, 1879, were $23,307,402,934.05, a daily average of $76,167.983A4. The largest amount for any one day during the year was $122,029,347, on Jan. 27, 1879, and for any one day since the organization of the association, $206,034,920.50, on Nov. 17, 1868. This was the day after the Black Friday famous for the collapse of the gigantic " corner" in gold. The largest balance paid to the clearing-house by any bank was $4,774,039.59, on April 5, 1872. The system in use by the New York clearing-house is so perfect that, of the enormous transactions made through it, no error or difference of any kind exists in any of its records; neither has any bank belonging to the association sustained any loss in its connection by the failure of any bank or otherwise, while a member. It has proved of great service during financial emergencies, notably in aiding and sustaining the United States government at the breaking out of the civil war; and during financial panics, especially that of 1873, when, by combining the resources of its members through the machinery of the clearing-house, they were enabled to greatly modify the dangers which so seriously threatened the whole country. Its operations amount to over 65 per cent of the total exchanges of the 23 clearing-houses of the United States, and consequently it represents in a measure the magnitude of the daily business of the country; while the fluctuations in its daily, monthly, and yearly trans actions, as shown by its records, are of great value both to the merchant and financier. The clearing-house occupies a building owned by the association, and arranged with special reference to its requirements.