The following analysis of Clearing-house transactions is specially applicable to New York and Boston. The peculiarities of other Clearing-houses will be noticed later on. Among the first things done with exchangeable paper when received is its classification according to the banks at which it is payable. The teller into whose hands it comes usually has a pigeon-hole for each bank, numbered with the Clearing-house number of that bank, in which the paper payable thereat is placed. At many of our Clearing-houses it is obligatory, and at all common, to place upon this paper some distinguishing mark, usually the name and number of the bank clearing it, to indicate the channel through which it has passed. In preparing the exchange for the Clearing-house, the amounts, merely of the various items making up the demands against each bank, are entered upon a blank called an "Exchange Slip." as follows:

The figures here given, it will be understood, are presented merely by way of illustration, and not as representing in character or amount the transactions of the Fourth National Bank. The first footing on the Exchange Slip ($195,450 in this case) represents the amount of checks or other items deposited to the close of business on a given day for the clearing of the next day. The addition of the items received the next morning by mail or otherwise in time for the clearing, makes the second footing (in this case, $268,625.50) being the total amount of claims carried to the Clearing-house by the Fourth National Bank against No. 1, the Bank of New York.

2d Teller.

No. i.

From No. 61.

Foubth National Bank

2 500 00

500 00

1000 00

     

150 00 800 00

     

5500 00

10 000 00

     

50000 00 40 000 00 85 000 00

     

195 450 00

4 500 00

50 00

125 50

60 000 00

     

8 500 00

     

268 625 50

____________

     

There is a different exchange slip for each bank, properly labeled,, to show for which bank the exchange is destined. On this slip are entered the amounts merely, of the different checks or other items-taken to the Clearing-house. The items on each slip are footed up,, and the totals entered, the first footing in the first debit column, and the final footing in the second debit column of another blank called the "Settling Clerk's Statement," ruled as follows, and containing the names and numbers of all the banks, a 'part of which are omitted to save space:

No. 61, Fourth National Bank.

Settling Clerk's Statement, January 16, 1884.

No.

Banks.

Debit.

Debit.

Credit.

 

1 2

Bank of N. Y. Nat'l Bkg. Ass'n. Manhattan Co.................

195,450 00 250,000 00

50,00000 175,000 00 125,000 00

90,00000

225,000 00

1,427,947 78

268,625 5° 310,000 00 71,000 00 200,000 00 145,000 00 125,000 00 260,00000 2,258,772 28

 

1

2

3 4 5 6

Mechanics' National Bank......

3

4 5 6

 

7

 

7

 

(Other banks omitted.)

 
   

2,538,397 78

3,638,397 78

3,297,323 04

 
     
       

341,074 74

 
     
 

3,638,397 78

 

In order to have the exchanges seasonably and carefully prepared, the first debit column is made up and footed at the close of business each day for the next clearing, the entries consisting of the first footings on the various Exchange Slips, as for instance, $195,450 on the one given. The heaviest part of the work is thus done the day before the clearing, leaving for the limited time left in the morning only the work of completing the additions to the exchange slips, and inserting the final totals ($268,625.50 on the Exchange Slip above) in the second debit column, which shows the total exchange sent. The credit column is left blank to be filled up at the Clearing-house with the amounts of the return exchange representing checks or other items payable by the Fourth-National Bank.