Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-11-22
Presented by Col. VIM. Trenholm,
Late Comptroller.
They Embrace a Number ofFeatures
Entirely Different from Those Of
Other Experts-An Outline of His
Plan, Particularly as Regards
Banking.


entirely different from those of other
experts, and have been carefully
studied by the commission during sew
eral recent sessions. Col. Trenholm
recommends the fusion of the green
backs and Sherman notes into one
form of paper. redeemable in gold.
He thinks that these notes should be
issued in denominations of 81, 50 and
80, in order that the people may have
confidence in the money in current
circulation. He believes that a re-
demption fund of 100000, 900 would be
sufficient to maintain the parity of the
entire volume of about $450,000, 900.
The suggestions of Col. Trenholm
REGARDING BANKING
are as follows:.
Ito make adequate provision for
the recognition of existing clearing
houses and the establishment of 9th.
ers, by allowing them to be organized
in reserve and central reserve cities,
under the national banking law, with
defined powers and responsibilities.
ITO empower clearing houses thus
organized to 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,
and to be payable to bearer.
3.-To limit the maximum amount
to which any such bank may have ac-
ceptances outstanding at any one time
to certain proportion of it's capital
and surplus.
4.-To prescribe that no such bank
be licensed to accept such drafts with
out taking from the drawers adequate
security therefrom to the full amount
of such contemplated acceptances,
which security may be in the form of
DISCOUNTED PAPER;
also without having deposited with
the clearing house security to the
amount of the circulating drafts APP
piled for, the sufficiency of such secur-
ity, both in amount and character, to
be certified in each instance separate
ly to the comptroller of the currency
by the proper authorities of the clear
ing house and approved by the local
bank examiner. Securities so depos-
tied to be released only upon presenta-
ton to the clearing house of can
celled drafts, which drafts are to be
delivered by the clearing. house to the
comptroller of the currency for de-
structiOn.
, 5.-The circulating drafts, authorized
to be accepted under tho ahaNa- .aanz
tional bank or by any State or private
bank, and will submit to such examin-
alton by the local examiner as may be
prescribed by the comptroller of the
currency. The amount of drafts of
any such drawer outstanding at one
time to be limited to a proportion of
ITS QUICK ASSETS,
including those held by the accepting
|. bank.
6.-The circulating drafts so author
lied shall be of uniform design, and
may be in denominations Of 81, 50, SO
and SIS and multiples of five dollars,
having engraved upon their face the
name of the accepting bank with
blanks to be filed with the names of
the drawers
7.-Such circulating drafts to be pre-
pared by the comptroller of the cur
rency and issued to each clearing
house association upon its requisition
made from time to time, under regu-
lations to be established by the comp
troller of the currency.
S.-This plan, if adopted, is ex-
pected to work out in the following
manner: A clearing house association
will, from time to time, make requisi-
ton upon the comptroller of the cur
rency for a certain amount of such
circulating drafts, to be accepted by
certain named banks, members 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
com nHa4cs respectively with the re-
quirements of the system; whereupon,
issues will be made to such banks and
each of such banks will cause to be
filled in the name of the drawer, then
execute it's acceptance upon the face of
the drafts. These drafts may then be
sent as
INCOMPLETE CURRENCY,
as now sent through the mails, or by
express, at a moderate charge, as they
will not become effective for circula-
ton until duly signed by the drawers
When signed, they will be paid out by
the drawing bank or banker for local
use first, and will gradually find their
way back to the accepting banks,
where they will be redeemed and sent
into the clearing house in order to re-
lease a proportionate amount of the
securities there held against such
issue.
The object of this suggestion is to
enable banks at remote points through
out the country to meet the local de-
mand for currency when it arises, 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 accepting banks.
Regarding the disposition of the sill
yer dollars and silver certificates, Col
Trenholm suggests that the silver now
in the treasury be constituted INTO
A RESERVE FUND
for the guarantee for outstanding silver
dollars, and that the silver certificates
~, Of tho hull l,,c