Wherever there is a group of banks located, the usual custom is to form what is known as a "Clearing House Association," for the convenience of exchanging checks on each other received during the previous clay's business, and paying the balances to or from such banks resulting from such exchange, and such checks are called "exchanges for clearing house." Each bank assorts such checks at the close of business, makes a list of same, and sends the checks and lists at some stated hour the next morning, by a representative, to the "clearing house," where such an exchange of checks between the different representatives is made that each receives all the checks drawn on his bank. These are then footed up by each representative and the amount is given to the "manager" of the clearing house, who tabulates the results. If any bank receives its own checks to an amount greater than the total of checks on other banks it has brought to the clearing house, then it owes a balance, or is said to be debtor to the clearing house. If the amount of checks received is less than those delivered, than a balance is due to the bank, or it is creditor at the clearing house. The total of the balances due from the "debtor" banks will always be equal to the total of balances due to the "creditor" banks. As soon as these balances are determined, each bank representative takes its checks back to the bank for examination as to their genuineness and goodness. If any prove to be forged, or improperly endorsed, or drawn for an amount exceeding the balance to the credit of the drawer, they should be sent back to the clearing house at a later hour agreed upon for paying and receiving balances, called "settling," to be returned to the banks from which they were received. After changes in the balances, made necessary by such returns, if any are made, the debtor banks pay the manager the balances due by them, and he immediately uses the money so received to pay the balances due to the creditor banks. The kind of money in which balances are settled at the clearing house is usually such as is agreed upon by the banks forming it. Sometimes settlements are made in what are called "clearing house certificates,"' representing gold coin or some other form of money specially deposited by the banks receiving same with some bank or banking institution which undertakes the safe-keeping of such money and the issue and redemption of certificates for same. The advantage of such certificates, where transactions are large, is that they save both the expense and risk which would be incurred in carrying the actual coin or money represented by them, and this also is the chief advantage of the clearing house system. Where a bank is not a member of the clearing house, the other banks are under the necessity of sending a messenger to the bank to exchange checks and settle balances, with all the labor and risk resulting therefrom.