In recent years clearing houses, especially in the West, have extended the scope of their original function so as to include all questions affecting the mutual welfare of banks. Some clearing house associations have rules providing for uniform action among their members in regard to rates of interest on deposits, rates of exchange and charges for collection. Quite generally these associations issue clearing house loan certificates in exchange for deposits of funds by the member banks. These certificates are drawn for large amounts usually and reduce to a minimum the carrying of actual cash to and from the clearing house. In times of panic or of financial stress when most or all banks have difficulty in securing funds to meet the demands made upon them, the clearing house associations often provide for additional issues of loan certificates based upon approved securities deposited by the banks. At such times a special loan committee is appointed to issue certificates and pass upon the securities which may include not only stocks and bonds but also bills receivable. In order to insure the withdrawal of these certificates when the emergency has passed, interest is charged upon them. They can be used only in the settlement of balances between banks, but by lessening the amount needed for this purpose they release so much currency for general circulation.