Practical Banking New And Enlarged

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Practical Banking New And Enlarged
Albert Sidney Bolles
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These are of three kinds— clearing-house gold cer- tificates, United States gold certificates, and United States, legal-tender certificates. Clearing-house gold certificates are issued in accordance with a plan adopted in September, 1853, against gold deposited with one of the associated banks, and are of the denominations of $1, 000, $5, 000 and $10, 000. They are numbered, registered and countersigned by the proper officer, and are endorsed when paid into the clearing- house by the paying ban...k, and when paid out are charged to the receiving bank, so that they can always be traced by the records. They are to be used only in settlements between the banks, and any member of the clearing-house which shall pay or deliver to any party, not a member, any such certificate, is subject to a fine of one hundred dollars. The Bank of America was selected as the deposi- tory of the associated banks at the time the clearing-house was estab- lished. The issue of legal-tender notes by the government and the sus- pension of specie payments reduced all ordinary settlements to a paper basis, and the issue of clearing-house certificates was discontinued.

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