The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-11-22
Another One Appears in Person OF
Colonel Trenholm.
FUSION OF PAPER MONEY
INTO ONE FORM REDEEMABLE
IN GOLD.
Presents Seven Propositions in Ex-
misunderstanding Studied by
the Monetary Commissioning
gesticn For 'Steadying" the Price
Of Silver.


currency under President Cleveland's first
administration, has just submitted his
views of currency reform to the mona
tary commission. They embrace num-
Der of features entirely different from
those of other experts and have been care
fully studied by the commission during
several recent sessions. Colonel Tren-
holm recommends the fusion of the green
back and Sherman notes into one form of
paper >~edeemable in gold.
He thinks that these notes should be
issued in denominations of 81, 81 and IS,
in order that the people may nave CONN.,
dence in the money in surrent circulation.
He believes that a redemption of the fund
OF S1Oo, 100000 would be sufficient to main
tain the parity of the entire volume of
about $450,000000. The suggestion of
| Colonel Trenholm regarding banking are
as follows:
SEVEN PROPOSITIONS.
First-To make adequate provisions for
the recognition of existing clearing houses
and the establishment of others, by al
/ lowing them to be organized in reserve
and central reserve cities under the ma
tional banking law, with defined powers
and responsibilities.
Second-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 clearing houses. Such
| drafts to be free of all taxation, federal,
state or municipal, and to be payable to
! bearer.
Third-To limit the maximum amount to
which any such bank may have accept
ances outstanding at any one time to a
certain proportion of its capital and sur
plus.
Fourth-To prescribe that no such banks
! be licensed to accept such drafts without
/ taking from the drawers adequate Sc
curity therefor 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 applied for, the
sufhciency of such security both in
amount and character to be certified in
each instance separately to the comp
authorities of the clearing house and ap-
proved by the local bank examiner.
Securities so deposited to 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
destruction
F'ifth-The circulating drafts, au-
thorized to be accepted under the above
conditions may be drawn by any national
bank, or by any state or private bank
which will submit to such examinations
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 any one time to be
limited TO proportion of its quick as
sets, including those held by the accept
ing bank
sixth-The circulating drafts so author
lied shall be of uniform design, and may
be in denominations of 81, 81, So So and
multiDles of S., having engraved upor
their face the name of the accepting
bank. with blanks to be filled with the
name of drawers.
Seventh-Such circulating drafts to be
prepared by the comptroller of the cur.
renc- and issued to each clearing house
association upon its reQuisition made
from time to time. under regulations tC
be established by the comptroller of the
currency.
CONVENIENT FOR BANKERS.
This plan, if adopted, is expected tc
work out in the following manner:
A clearing house association will from
time to time, make requisitfon on the
comptroller of the currency for a certain
amount of such circulating drafts. to bt
accepted by certain named banks
members of that association. The bank.
for whose benefit such circulating drafts
are called for will satisfy the authoritie.
OF the clearing house association of thei1
compliance respectively with the require
ments of the system; whereupOn issue.
Will be made to such banks, and each O
such banks will cause to be filled in tn,
name of the drawer, and then execute it.
acceptance upon the face of the drafts
These drafts may be then sent as in
complete currency is now sent through
the mails, or by express, at a moGera |,
charge, and they will not become effec
tive rom circulation until duly signed b,
the drawing bank or bank for local U.s.
/ first, and Will gradually find their Wa!
back TO the accepting banks, by which
they will be redeemed and sent to thu
clearing house in order to release
proDortionate amount of the securities
there held against such issue.
The object of this suggestion is t.
/. enable banks at remote points through
out the country to meet the local demand
Tor currency wAen it arises and only a
it does arise, and at the same time t,
, limit and control such issues through tn
operation of the principle of self-protec
ton, which will assert itself in tn
. management of the accepting banks.
: RESERVE FUND OF SILVER.
Regarding the deposit of the silver dol
lars and silver certificates Colonel Tren
! holm suggests that the silver now in tn
treasury be constituted into reserv
, fund for the guarantee of outstandin,
silver dollars and that the silver certifi
Gates outstanding be cancelled from tim
to time as they come into the treasury
He recommends that silver certificates b
and that some of them be issued in de
nominations of $1,000, $1,000 and $40 600 il
order that they may be held by nationa
banks in the proportion OF 20 per cent o
their lawful money reserves.
Colonel Trenholm suggests an interna
tionai agreement among Silver PRODUCING
countries for steadying the price of sill
YER He does not contemplate tn
| restoration of silver to parity with gold
, but the regulation of the price so as t
give the assurance to the worlds com
material decline in the price.