Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1897-11-25
A CURRENCY SCHEME
Col Trenholm Presents His Views
to the Commission.
SUGGESTIONS REGARDING BANKING.


the currency under President Cleve
lands first administration, has jus
submitted his views of currency re
form to the monetary commission
They embrace number OF features en-
tirely different from those Of other ex
perts, and have been carefully studie'
by the commission during several re
cent sessions. Col. Trenholm recon
mends the fusion OF the greenbacks ant
the currency notes into one form Of pa
per, redeemable in gold. He think
that these notes should be issued Ii
denominations Of 81, 81 and IS, in orde
that the people may have confidence
in the money In current circulation
He believes that redemption fund o
800, OOO,O 900 would be sufficient to main
tain the parity Of the entire volume o
about S450, 900, 900. The suggestions o
Col. Trenholm regarding banking ar
as follows:
Flrst-To make adequate provision for tn,
recognition Of existing clearing houses and tn
establishment Of others by allowing them to b.
Organized in reserve and central reserve cite
under the national banking law. with defined
powers and responsibilities.
Second-To empower clearing houses thu
organized to license banks In their respectiv,
cities, to accept circulating drafts drawn b.
banks situated at places where there ore M
clearing houses. Such drafts to be free OF oil
taxation. federal, state or municipal and to b,
payable to bearer
Third-To limit the maximum amount tt
which any such bank NAV have acceptances
outstanding at sny one time to certain pro.
norton of its capital and surplus
Fourth-To prescribe that no such bank bt
licensed In accent such drafts without takint
from the drawers ADEQUATE security therefor
In tho full amount nj such contern nlated nc.
centances which aecur,tv NAV be IN the firm
NJ discounted paper. also without having de.
nosited with the clearing house security TO the
amount ~ mo circulating drafts onnled for
the sufac,ancu NJ sucb securitv hoth in amoun,
And character IN bc certified in each instance
senarutelv IN The comn,roler NJ the CURRENCY
hv mo rroner ant boritjns NJ tho caoring bouss
and annrovcd NV the local hank examiner Sc.
curities on denos,ted IN no released univ unor
nresentation IN the clearing house n, cancelled
dro,t. ,,hicb droft. ara M ha delivered nv tbs
c,oorro house IN tho comntroler of tho cur.
sonortor dostr,o,,on
Ei;,h ma o,rouIo,,n, drnt,s ou,hori,oa IN
49, aoa.,.ad ID. .Sa o,, ~. ,aaa,ttaa1 ,ror
ho aua,,,, ~, an,, no,,a,nI hnr,, ~ h., INV o,a,,
~ ' ,,,I,, ,,,,, a,,,',,,,. =. soh a,
o,ntna,ions hv ,ha lncoi oynmlnsr nc NAV he
.,n'.t,,'d ~, ~. .,,,,,,,,iIa. =, ~, a,,rro,o,,
~ ru'a,ae y, dro,a ~, .n,, soh d,a aut
a,aS ao"' W ,"o a No. ,i r Nv nro,
aa,t >, w. '',,,a,, asaa,s ,n,,rdino ,hoso hold
H., ,ho aoaar,inn hnn,,
~ 81. "N n,ha a,ra,,a,,,u arors GO o,,hor;,od
~ ,.,sa..,s .oa1, ,S sS n do
s s,m'i -, Il % AZ ana ,n,lti,,,as n,
aoa ''"ua.a ha,, ,,o,,oa ,,uan ,ha,. soo'
NV ""'''s ,,,, nia,,,s =,
Wv , ""u. . y, W. ~, ",pS Jsn,'oms
n"s" srah a,rolatin drotts :, ho rro.
.nnaa ~, no on,nr,na,,on %, tha o,rronor md
"u" " a,aa",n,, ho,so "ssooia ,on mon
,a a,,,,,s,,an ,nnan fra, t,,no y, ,,,na ,rdo,
ro,, Ca 10 hn ostah,isbed NV tha comn.
troller Of the currency
Eighth This plan II adopted, Is expected ia
work out In the following manner: clearing
ha ~ t tha
renew for n certain amount of such circulating
drafts, to be accepted by certain named banks,
members Of that association. The banks for
pent. sarn atalls are
house. ossociation ~ ,hoir comnliance resnec.
lively with the requirements Of the system,
whereupon issues will be made to such banks 5
ana each OF sucn banks VIII cause 70 DC nlle ,
its ' ncce m unon the face Of the drafts
Those drafts may be then sent as incomplete
currency is now sent through the mails or by
express At moderate charge ana 'ney win mo, mot
s UVvuo ,v e tha dr. IN, wSsn s,unsd they
will be paid out BY the drawing bank or bani,
for local use first and will gradually find their
way back to the accepting banks, where they
W az anu ,u, Vu q,
the e. securities there held auainst sucb issues
The object of this suggestion is to
enable hanks otremote noints throuph.
ont tbe country to meet the local de-
mands for CURRENCY when it arises. and
only as it does arise. and at the same
time to limit and control such issues
through the operation of the principle
of self.protection, which will assert
itself in the management of the accent.
inc hanks
Regarding the disnosition Of the
silver dollars and silver certificates,
Col Trenholm SUGGESTS that the silver
now in the treasury he constituted
;n,o q rosorro frrd for tho rrorontoo