Note 407 — Chapter XIX

Or, in some cases, taking the place of cash dealings between banks and a local clearing house. On the face of it, it is incredible that balances between cities, or within cities, after the country clearing houses have done their work, should be so great as to account for a very great part of New York clearings. These balances between cities other than New York, and balances within country clearing houses, must be a minor fraction of country clearings, and country clearings are little more than half of New York clearings. Ordinary commerce, as shown in chapter XIII, cannot give rise to great sums in the aggregate, to say nothing of giving rise to great balances.