The Bolivar bulletin. (Bolivar, Tenn.) 1888-1946, 1897-11-26
CURRENCY REFORM.

Another Expert in FInancr Gives His
yiews-New Features Brought Forward
a Former Comptroller of the Currency
Sabm Is the Results of Ills Study o< the
Subject to the Monetary Commission.
m AsIIfgGToN, Nov. 22-Col. William
]. Trenholm, who was comptroller of
fhe currency under President Cleve-
lands first administration, has just sub
nittgd his views of currency reform to
the monetary commission. They en-
brace a mum Der 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. He thinks
that these notes should be issued in de-
nominations of 81, So and S5, in order
that this people may have confidence
in the money in current circulation.
He believes that a redemption fund of
$780, 600 600 would be sufficient to
maintain the parity of the entire vol
tiTae of about $3.50, 600, 600. The sug-
gestions of Col. Trenholm regarding
banking are as follows.
l. To make adequate provision for the recog-
nitiou of existing clearinghouses, and the es-
tab!ishrneTt OF Others by allowing them to be
organized, ia reserve and central reserve clues,
under The national banking law, with defined
powers and responsibilities.
2. 10 empower clearinghouse thus organ
ized to license banks in their respective cities
to aecep5 circulating drafts drawn by banks
situated at places where there are no clear
inghouses Such drafts to be free of all taxa
ton federal, state or municipal, and TO be pay
able to bearer.
g. 70 limit the minimum amorut to which
any sucll bank may have aeceptances outstand-
ing at any one time to @ certain proportion OK
its capital ana surplus.
4. 10 prescribe that 40 sueh bank be licensed
TO accept such drafts without taxing from the
drawers sdequate security therefor to the full
amount OF saeh contemplats1 aeceptances,
which security may be ia th3 form OF ols-
counted paper; also without having deposited
with the clearinghouse, security to the amount
Of tn circulating drafts applied for. the suf-
heieney of such securiety, both in amount ana
character 70 be certified in each instance sep
arateiy to the comptroller of the currency by
the proper authorities of the clearinghouse,
and approved by the local bank examiner
Securities so deposited to bs released only
upon presentation to the clearln ghouSe OF can
ceIed drafts which drafts are to be delivered
Dy the clearinghouse to the comptroller oI the
currency for destruction.
accepted under the alb We conditions may be
drawn by any national bank, Or By any state or
private bank which viii submit 10 such exanll-
nations by tae local examines as may be pre-
scrlbed by the comptroller OF tae currency
Tne amount of drafts of any such drawer out
staning at one time to be limited to i propor-
ton of its quick assets, including those he'd Dy
the accepting bank.
6. The circulating drafts 50 authorized shall
be OF uniform design, and may be in de1omlna-
a. nj. 1,aar rf7arf
engraved upon their face the name OF the ac-
eepting bank, with blanks to be filled with the
name of the drawers.
!. Such circulating drafts to be prepared by
the comptroller of the currency and issued 10
each clearinghouse association upon its rcqul-s
sition made, from time to time, under reguIa-..
tions to be established by the comptroller Or
the currency.
8. This plan, If adopted. is expected to work
out in the following manner: clearinghouse
association will, from time to time, make requ1-
Sition upon the comptroller of the currency for
certain amount OF such circulating drafts. to
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
ments of the system, whereupon issues VIII
be made to such banks. and each OF such tanks
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 be
then sent as incomplete currency, as now sent
through the mails. or by express, at d 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 CT banker for local use first and
will gradually find their way back to the &c
cepting banks, where they will be redeemed
and sent into the clearinghouse, in order to re-
lease q proportionate amount of the Securities
there held against such issue.
The object of this suggestion is to
enable banks atremote 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-protection, which will assert
itself in the management of the ac-
cepting banks.
Regarding the disposi tion 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 of out
standing silver dollars, and that the
silver certificates in excess Of the
actual bullion value of tile 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 $50 and over. and that some
Of them bs issued in denominations Of
81, 900, S., 900 and SO, 000, 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 SO
as to give the assurance to the worlds
commerce that there can be no fur
thcg material decline in the price.
Gladstone in Ills Usual Health, Despite
Reports TO the Contrary.
T.oNnoN Nov % - fjiena feI, from