To comprehend this, an understanding of the matter under " Clearing-house" is first necessary. The

"runner's exchange" is an adjunct of the Philadelphia Clearing-House

It is a secondary exchange, as it were, which

šJames William Gilbart, writing in 1834, said: "In the year 1667 occurred the first ' run ' of which we have any account in the history of banking. The business of the new-fashioned bankers had increased so fast, and they had become so numerous, that their trade was supposed to be at its height in this year; when, during the time that a treaty of peace was under consideration, the Dutch fleet sailed up the Thames, blew up the fort of Sheerness, set fire to Chatham, and burned four ships of the line. This disaster occasioned great alarm in London, particularly among those who had money in their banker's hands, as it was imagined that the king would not be able to repay the bankers the money they had lent him. To quiet the fears of the people, the king issued a proclamation, declaring that the payments to the bankers should be made at the Exchequer the same as usual." takes place later than the regular morning "clearing." It includes items due that day and received in the morning mail, which are made payable at the banks, and saves the necessity of the "runner's" going from bank to bank, which, in Philadelphia, is a laborious task, owing to the widely distributed territory which they cover.

Inasmuch as the regular "clearing" for the day takes place at an early hour in the morning, covering only items for the previous day, the " unner's exchange" enables the banks to ascertain before closing, whether or no items received that day are good.1