Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1897-11-27
CURRENCY REFORM.


A Former Comptroller OF tho Currency
subm Is the Results of His Study OF the
Subject to the Monetary Commission.
WASHINGTON, Nov. 22.-Col. William
!. Trenholm, who was comptroller of
the currency under President Cleve-
lands first administration, has just sub
mitted his views of currency reform to
the monetary commission. They en-
brace number of features entirely
different from those of other ex-
perts, and have been carefully studied
by the commission during several
recent sessions. Col. Trenholm recon-
mends the fusion of the greenbaclSs
and Sherman notes into one form OF
paper redeemable in gold. lie thinks
that these notes should be issued in de-
nominations of 81, 81 and S., ia order
that the people may have confidence
in the money in current circulation.
lie believes that a redemption fund OF
sl0O, 900 600 would be sufficient to
maintain the parity of the entire vol.
ume OF about $500 900. The sug-
gestions of Col. Trenholm regarding
banking are as follows.
|. Tomake adequate provision for the recog-
milton of existing clearinghouse, and the es-
tablishment of Others by allowing them to be
organized, in reserve and central reserve cities,
under the national banking law, with defined
powers and responsibilities.
=. To empower clearinghouseS thus organ
lied to license banks in their respective cities
= ltrb bnp Ire
situated at places where there are no clear
inghouses. Such drafts to be free of all taxa
tion, federal, state or municipal, and to be pay
able to bearer
D. 10 limit the minimum amount to which
any such bank may have acceptances ou.stand-
Ing at any one time to a certain proportion OF
, its capital and surplus.
a. To prescribe that no such bank be licensed
to accept such drafts without taking from the
/ drawers adequate security therefor to the full
amount of such contemplated acceptances,
which security may be in the form OF dis
counted paper. also without having deposited
with the clearinghouse, security TO the amount
OF the circulating drafts applied for, the suf
| hcicncy Of such securely, both in amount and
character, to be certified in each instance sep
arately to the comptroller of the currency by
| the proper authorities OF the clearinghouse,
| Securities so deposited to be released only
upon presentation to the clearinghouse of can
celled drafts, which drafts are to be delivered
! by the clearinghouse to the comptroller of the
currency for destruction.
| D. The circulating drafts authorized to be
accepted under the ab we conditions may be
drawn by any national bank or by any state or
! private bank which will submit to such exami-
nations by the local examiner as may be pre-
| scrlDed by the comptroller Of the currency.
| The amount of drafts of any such drawer out
standing at one time to be limited to u propor-
tion Of its quick assets including those held by
the accepting bank.
| g. The circulating drafts so authorized shall
be of uniform design, and may be in denomi7a-
tons of II, 81, s3, 20 anu multiples of s., having
engraved upon their face the name of the &C.
ceptlng bank, with blanks to be filed with the
name of the drawers.
l. Such circulating drafts to be prepared by
the comptroller of the currency and issued tc
each clearinghouse association upon its rcqui-
sition made, from time to time, under regula-
tions TO be established by the comptroller OF
| the currency.
s. This plan, if adopted, is expected to work
out in the following manner: A clearinghouse
association will, from time to time, make requi-
sition upon the comptroller of the currency fol
a certain amount of such circulating drafts, tC
be accepted by certain named banks members
of that association. The banks for whose ben
eft such circulating drafts are called
for will satisfy the authorities Of the
| clearinghouse association Of their COM
pliance respectively with the require
| meHts 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 and then execute its acceptance upon
the face OF the drafts. These drafts may bt
then sent as incomplete currency as now sent
through the mails or by express, at q moderate
charge, as they will not become effective fol
circulation until duly signed by the drawers
When signed, they will be paid out by the
drawing BAN, or banker for local use first, and
will gradually lind their way back to the ac-
ceptins banks, where they will be redeemed
and sent into the clearinghouse, in order to re-
lease a proportonate 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
only as it does arise, and, at the same
time, to limit ana control such issues
through the operations of the princi.
pie of self-protecton, which will assert
itself in the management OF the ac-
cepting banks.
Regarding the disposition of the sill.
ver dollars and silver certificates, Col.
Trenholm suggests that the silver now
in the treasury be constituted into u
reserve fund for the guarantee of out
standing silver dollars, and that the
silver certificates in excess of the
actual bullion value of the coins and
certificates outstanding be Cancelled
from time to time as they come into
the treasury. lie recommends that
silver certificates be issued in denomi-
nations of $40 and over, and that some
of them be issued in denominations of
81, 900, s., 200 and $40, 001 in order that
they may be held by national banks in
the proportion of 20 per cent. OF their
lawful money reserves.
Col Trenholm suggests an interna-
tional 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 SC
us to give the assurance to the worlds
commerce that there can be no fur.
ther material decline in the price.
IA.