The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-11-22
EX-COMPTRO TRENHOLM
WANTS 1T KEPT AS A RE-
SERVE FUND.
INTERNATIONAL AGREEMENT
THE PRICE OF THE WHITE
METAL.
SILVER
COINAGE.
OPPOSES
Paper Money Should BE of One Form
and RedeemabIe in
Gold.

WASHINGTON, Nov. 21.-Col. Will
liam L. Trenholm, who was comptroller
of the currency under President Cleve-
land firsts administration, has just
submitted his views of currency re-
form to the monetary commission. They
embrace a number of features entirely
different from those Of other experts
and have been carefully studied by the
commission during several recent ses-
sions. Col. Trenholm recommends the
fusion of the greenbacks and Sherman
notes into one form Of paper redeem
able in gold. He thinks that these
notes should be issued in denominations
of 81, 81 and S., in order that the peo-
pie may have confidence in the money
in current circulation. He believes that
a redemption fund of $100, 100000 would
be sufficient to maintain the parity of
the entire volume of about $450,00O,000.
The suggestions of Col. Trenholm re-
garding banking are as follows:
l. To make adequate provision for the
recognition OF existing clearing houses and
the establishment of others by allowing them
to be organized in reserve and central re-
serve cities under the national banking law,
with defined powers and responsibilities.
g To empower clearing houses thus or
ganized 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 or municipal and
to be payable TO bearer
g. To limit the maximum amount to which
any such bank may have acceptances out
standing at any one time to certain pro-
portion of its capital and surplus.
4. To prescribe that no such bank be IL
censed to accept such drafts without taking
from the drawers adequate security therefor
to the full amount of such contemplated &C
ceptances which security may be in the
form of discounted paper; also without hav
ing deposited with the clearing house Sc
curity to the amount of the circulating drafts
applied for, the sufficiency 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 author
tiles of the clearing house and approved by
the local bank examiner Securities SO ue-
ton to the Clearing house OF Cancelled drafts,
which drafts are to be delivered by me
clearing house to the comptroller OF the
currency for destruction.
5. The circulating drafts, authorized to be
accepted under the above conditions, may be
drawn by any national bank, or by any state
bank which will submit to such examinations
by the local examiner as may be prescribed
by the comptroller of the currency. The
amount of drafts of any such drawer out
standing at any one time to be limited TO a
proportion of its quick assets, lncluulhS lnoss
held by the accepting bank.
6. The circulating drafts so authorized
shall be of uniform design, and may be IN
denominations of 81, 81, So, So and multiples
of So, having engraved upon thelr race lhe
name of the accepting bank, with blanks TO
be filled with the name of the drawers.
Z. Such circulating drafts to be prepared
by the comptroller of the currency and issued
to such clearing house association upon It's
requisition made from tine to time, under
regulations to be established by the comp
troller of the currency. '4g ,-t.s- ..r
s. This PLAN If adopted, is expected to work
out in the following manner: clearlns
house association will, from time to time,
make requisition upon the comptroller OF the
currency for a certain amount OF such CIR
culating drafts, to be accepted by certain
named banks, members of that association.
The banks for whose benefit such circulating
drafts are called for will satisfy the author
tiles of the clearing house association OF their
compliance respectively with the requirements
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 drawers
and then execute its acceptance upon the race
of the drafts These drafts may be then sent
as incomplete currency is now sent through
the mails, by express, at moderate
charge. as they will not become effective for
circulation 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 re-
deemed and sent in to the clearing house
in order to release 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 Saeet the local de-
mand 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
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
reserve fund for the guarantee of out
standing silver dollars, and that the
silver certificates in excess of the ac-
tual bullion value of the coin and GER
tificates 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 $1,000,
$4,000 and $4,000, in order that they
may be held by national banks in the
proportion of 20 per cent of their lawful
money reserve.
Col. Trenholm suggests an interna-
tlonal agreement among silver-produc-
ing countries for steadying the price of
silver. He does not contemplate the
restoration of silver to parity with
gold, but the regulation of the price
seems to give the assurance to the
worlds commerce that there can be no
further material decline in the price.