The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-11-22

WASHINGTON, Nov. a,-col. Will
lam Trenholm. who was comptroller of
the currency under President Cleveland's
firs. administration, has Just submitted
HE Views OF currency reform to the mon
etary commission. They embrace
number Of features entirely different
from those OF other experts, and have
been carefully studied by the commission
during several recent sessions. Colonel
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 order
that the people may have confidence IN
the money In current circulation. lie
believes that redemption fund OF $780,
100000 would be sufficient 10 maintain
the parity OF the entire volume of about
H5O.OO0. The suggestions OF Colonel
Trenholm regarding banking are as fol-
lows:
Ito make adequate provision for the
recognition Of existing clearing houses
and the establishment OF others, by al
lowing them 10 be organized In reserve
and central cities, under the national
banking law, with defined powers and
responsibilities.
ITO empower clearing houses thus
organized 10 license banks in their re-
spective 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 or municipal aud TO be payable to
bearer.
3.-To limit the maximum amount TO
which any bank may have acceptances
outstanding at any one time to certain
proportion OF It's capital and surplus.
ITO prescribe that no such bank be
licensed TO accept such drafts without
taking from the drawers adequate secur-
ity therefor to the full amount OF such
contemplated acceptances which securi-
ty may be In the form Of discounted
paper: also without having deposited
with the clearing houses security to the
amount OF the circulating drafts applied
for, the eufIiciency Of such security both
in amount and character, TO be certified
in each instance separately TO the comp
troller of the currency by the proper au-
thorltles of the clearing house and ap-
proved by the local bank examiner. Sc
crrlties so deposited 10 be released only
upon 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-
tlon.
5.-The circulating drafts. authorized
to be accepted under the above condi-
tions, may be drawn by any national
bank or by any state or private bank,
which will submit to such examination
by the local examiner as may be pre-
scribed by the comptroller OF the cur
rency. The amount OF drafts OF any
such drawer outstanding at one time to
be limited to proportion of Its quick
assets, including those held by the ac-
cepting bank.
6.-The circulating drafts 30 author
ized shall be OF uniform design, and may
be in denominations OF 81, 81, SO, S. and
muliples OF S., having engraved upon
their face the name of the accepting
bank. with blanks to be filled with the
name Of the drawers,
7.-Such circulating drafts 10 be pre-
pared by the comptroller Of the currency
and issued to such clearing house asso-
citation upon Its requisitlon made from
time to time, under regulations to be es-
tabliehed by the comptroller OF the cur
rency.
S.--Thls plan, 81 adopted, is expected TO
work out In the following manner: A
to time make requisitlcn upon the comp
clearing house association will, from time
troller OF tho currency for n certain
amount OF such circulating drafts, to be
accepted by certain named banks, mem
bcrs OF that association. The banks for
whose benefit such circulating drafts are
called for will ratify the authorities OF
the clearing house association OF their
compliance represenuvaly with the re-
qulrements OF the system; whercupon.
issues will be made to such banks and
each OF such blanks viii cause to be filed
In the name Of the drawer then executed
It's acceptance upon the face OF the
drafts, These drafts may then be sent
as incomplete ctrrency, as now sent
through the mails, or by express, at
moderate charge. as they will not be-
come effective for circulation until duly
signed by the drawers. When signed,
they viii be paid dHt by the drawing
bank or banker for local us, first and
will gradually find their way back 10 the
accepting banks, where they win be re-
deemed and aont into the clearing house
In order to release proportionatc
amount Of the securities there held
against such issue.
The object Of this suggestion Is TO en-
able banks at remote points throughout
the country to meet the local demand for
currency when It arises and only as II
does arise, and nt the same time to limit
and control such lssues through the
operation OF the principle Of self pru,cc-
uon, which will assert itself IN the man
aEcmont Of the accepting bank
Regarding the disposition Of tho silver
dollars and silver certificates, Col. Tren.
holm sugErBts that the silver nov In the
treasury he constituted into reserve
fund FOR the guarantee OF outstanding
silver dollars, and that the silver certl1-
Gates In excess Of the actual bullion
value OF the coins and certificates out.
u,anllng be cancelled from time tn time
~ they come into the treasury Ho re-
cOmmcnds thnt ellvcr certificates be lR-
Hucd In denominations Of $40 and over
and that some Of them bc issued In dc.
nominations Of $1,000, $4,000 ana $4,000
In order that they may be- held by ma.
tlonll banks In the proportion Of 20 per
cont Of their lawful money reserves.
Colonel Trenholm sugrE,a an inter
national agreement among silver pru-
duclng countries FOR elcn1ylnE the prlct
Of silver llc doca not contemplate the
restoration of silver 10 parity with rpld.
but the regulating or che price 50 as to
give the assurance tu the worlds come
morcc that there can br no further ma.
tcrlhl decline In the price,
Fatmets' Ftui.