Retrieved from “www.archive.org banks in each district might be paid by drafts on New York or any other place agreed on.” These extracts contain the very quintessence of the clearing-house system. A regulation ” belonging to the administration of banks rather than to legal enact- ments ” comprehends the clearing-house constituted as a private and voluntary association, unchartered, and in fact unknown to the law. The remedy for the ” danger- ous expansions of discounts and issues ” and for the ” re- 132 CLEARING-HOUSES laxation and serious inconveniences ” is afforded by the very system which he proposed; and the ” want of a com- mon medium other than specie for effecting the payment of balances ” which was the ” principal difficulty in the way of an arrangement

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