clearing

The Columbia Encyclopedia, 6th ed.

clearing

clearing, in banking, the periodic settling of bankers' claims against each other, for which local banks establish clearinghouse associations. Clearinghouses are said to have existed in Florence by AD 800. They were certainly perfected in Lyons by 1463, and their use was widespread in 18th-century Europe. The first modern clearinghouse was either at Edinburgh (1760) or at London (1773). Such an institution involves frequent meetings of local bank representatives to settle the balances among member banks. In the United States, the balance (debit or credit) for each bank at the close of a meeting is forwarded to the Federal Reserve bank, which adjusts the individual accounts accordingly. Intercity balances are settled on the books of the Federal Reserve banks daily by electronic transfers. Clearing is also practiced by stock and commodity exchanges. The Stock Clearing Corp. (started in 1920), for instance, is responsible for clearing transactions made at the New York Stock Exchange (NYSE); in addition, the National Securities Clearing Corp. (1976) handles clearances for NYSE, the American Stock Exchange, and NASDAQ (see under stock exchange), and the International Securities Clearing Corp. (1985) handles overseas transactions. Many of these operations are now computerized. International claims are settled by clearing unions, groups of central banks, and other major financial institutions. The most famous such group was the European Payments Union, now defunct, which was created in 1950 to provide economic stability in Europe during the postwar period.

See T. Cowan, The Clearing Banks and the Trade Unions (1984); B. G. Auguste, The Economics of International Payments Unions and Clearing Houses (1997).

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

clearing
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.