Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1897-11-22
PRESENTS NOVELTIES.
Plan for Reform Of the Currency
Proposed by an Ex.cur.
rency Comptroller.
woULDlNor,RETIRE GREEEBAOKs,

nut Keep Them Anoat with Reserve 10
HACK Them-Feature Of the Plan Ii the
Scheme TO supply Currency Through the
Clearing Houses-His solution for the
Silver NEUTRALITY-SUSPICIOUS. on Our ca
madam Relations.
Washington. Nov. 22.-Colonel William
L. Trenholm, who was comptroller Of
the currency under President Cleve-
lands first administration, has just SUBJ
mitted his views Of currency reform to
the monetary commission. They en-
brace a number Of features entirely diff
ferent from those of other experts, and
have been carefully studied by the COM
mission during several recent sessions.
Trenholm recommends the fusion of the
greeEbacks and Sherman notes into one
form Of paper redeemable in gold. He
thinks that these netes should be issued
In denominations CT 81, 81 and IS. in or
der that the people may have confidence
IN the money in current circulation. He
believes that redemption fund Of $780,.
o0o.0ee would be sufficient to maintain
the parity of the entire volume of about
$450. COO. Geo.
Suggestions Regarding Banking.
The suggestions Of Colonel Trenholm
regarding banking include the following:
To make adequate provision for the rec
ognition of existing clearing houses and
the establishment of others by allowing
them to be organized in reserve and GEN.
trail reserve cities under the national
banking law, with defined powers and re-
sponsibilties. 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 no clearing houses. Such
drafts to be free Of all taxation, federal,
state or municipal. and to be payable to
bearer. To limit the maximum amount
to which any such bank may have ac-
ceptances outstanding at any one time
to a certain proportion of its apital and
| surplus.
Provision for Adequate Security.
The clearing houses are also to pre-
| scribe that no bank be licensed to &C
cept such drafts without taking from the
drawers adequate security therefor to
the full amount OF such contemplated
acceptanses. which security may be in
the form Of discounted paper: also with
| out having deposited with the clearing
house security to the amount Of the cir
culating drafts applied for, the suffi-
cheney Of such security. both in amount
| and character. to be certified in each
instance separately to the comptroller
| OF the currency by the proper author
tiles OF the clearing house. and approved
by the local bank examiner. Securities
80 deposited are to be released only up
on 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 destruc-
tion. These drafts are to perform all
the duties OF currency while they are
out and he cancelled when they reach
the accepting banks.
What He Would DO About Silver.
Regarding the disposition of silver
dollars and silver certificates Colonel
Trenholm suggests that the silver now
In the treasury be constituted into a re-
serve fund for the guarantee of out
standing silver dollars, and that the sill
yer certificates in excess Of the actual
bullion value of the coins and certificates
outstanding be cancelled from time to
time as they ccme 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 s1.0o. 5000 and
$4,000. in order that the may be
held by national banks in the proper
ton OF 20 per cent. OF their lawful money
reserves. Colonel Trenholm suggests
an International agreement among SILL
yer producing countries for steadying
the price Of silver. He does not contem-
plate the restoration n silver to parity
with gold. but the r. ,,tion Of the price.
CANADIAN-AMERICA RELATIONS.
As They Arc Affected by the Influence OF
the Mother Country.
IL o.