The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1897-11-24
PRESENTS NOVELTIES.
Plan for Reform of the Currency
Proposed by an Ex-Cur-
rency Comptroller.
WOULD NOT RETIRE GREENBAOKS,

Scheme tn supply Currency Through the
Clearing Houses-His solution for the
Silver Problems uiation ON Our Ca
madam Relations.
Washington, Nov. 22.-Colonel William
l.. Trenholm, who was comptroller of
the currency under President Cleve-
lands first administration, has just sub
mitted his views of currency reform 10
the monetary commission. They en-
brace number of features entirely diff
ferent from those of other experts, and
have been carefully studied by the COM
mission during several recent sessions.
Trenholm recommends the fusion of the
greenbacks and Sherman notes into one
form Of paper redeemable in gold. He
thinks that these notes should be issued
in denominations Of 81, 81 and IS, in or
der that the people may have confidence
in the money in current circulation. He
believes that redemption fund of $780,
100000 would be sufficient 10 maintain
the parity Of the entire volume of about
$45O, 00OO 600.
Suggestions Regarding Banking.
The suggestions of Colonel Trenholm
regarding banking include the following:
To make adequate provision for the rec
ognition Of existing clearing houses and
the establishment of others by allowing
them 10 be organized in reserve and CEN
trail reserve cities under the national
banking law, with defined powers andre
sponsibities. To empower clearing houses
thus organized to license banks in their
respective cities to accept circulating
drafts drawn by banks situated at places
where there are no clearing houses Such
drafts to be free of all taxation. federal,
state OF municipal, and to be payable to
bearer To limit the maximum amount
to which any such bank may have ac-
ceptances outstanding at any one time
to a certain proportion Of its capital and
surplus.
Provision for Adequate Security.
The clearing houses are also to pre-
scribe that no bank be licensed TO ac-
cept such drafts without taking from the
drawers adequate security therefor to
the full amount Of such contemplated
| acceptances, which security may be in
the form of discounted paper; also with
out having deposited with the clearing
house security to the amount of the cir
culating drafts applied for, the suffi
cheney Of such security, both in amount
|
! instance separately to the comptroller
of the currency by the proper author
tiles Of the clearing house. and approved
| by the local bank examiner. Securities
| so deposited are to be released only up
| on presentation to the clearing house of
! cancelled drafts, which drafts are to be
| delivered by the clearing house to the
comptroller of the currency for destruc
ton. These drafts are to perform all
the duties of currency while they are
out and be cancelled when they reach
the accepting banks.
What He Would Do About silver.
Regarding the disposition of silver
dollars and silver certificates Colonel
| Trenholm suggests that the silver now
| in the treasury be constituted into re-
serve fund for the guarantee of out
standing silver dollars, and that the sill
| yer certificates in excess of the actual
bullion value OF the coins and certificates
outstanding be cancelled from time to
time as they come into the treasury. He
recommends that silver certificates be
issued in denominations of $40 and over,
and that some Of them be issued in
denominations OF $1,00. $4,000 and
100000 in order that the may be
held by national banks in the proper
ton of 20 per cent. Of their lawful money
reserves. Colonel Trenholm suggests
an international agreement among sill
yer producing countries for steadying
the price of silver. He does not contem-
plate the restoration Of silver TO parity
with gold but the regulation of the price.
CANADIAN-AMERICA RELATIONS.