Loan and trust companies are organized by a number of persons, usually ten or more, under the laws of the various states.
These companies usually receive deposits and make loans, but as a rule they do not undertake the collection of commercial paper. They act as agents for corporations in transferring stocks and bonds, make investments, collect interest, act as trustees, receivers, executors, administrators, etc. Many companies have boxes in fire and burglar proof safes which they rent to customers desiring a safe place for the keeping of valuable papers, etc. others make a business of examining and insuring titles to real estate.
A clearing house is the place where the representatives of certain banks, associated for the purpose, meet, and, under the supervision of a committee or officers selected by the members, settle their accounts with one another and make and receive payment of balances.
Each bank in its daily dealings receives many bills of other banks, and checks drawn on them, so that at the close of the day's business every bank has in its drawers various sums due to it by other banks. It is, in like manner, the debtor of other banks which have received its bills and checks. These sums due by and to the banks among themselves are at the clearing house set off against each other and the balances paid or received.