The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-11-25


l. Tren noirn. who was comptroller Of the
Sarre1ey under President cisyslsnd's first
administration. has y4s< submitted asS
views Of currency reform 20 me monetary
commission. They embrace NUMBER OF
features entirely different from those OF
other experts and have been carefully
studied by the commission during several
recent sessions. Col Trennoirn recon-
fnsiacs the fusion OF the greenback and
sherman notes into the form Of paper. re-
deemable In gold. He thinks that these
notes should be issued IN denominations CT
81. y and s.. IA order that the people may
nave confidence in the money in current
circulation He believes that redemption
fund OF 90 would be sufficient 10
maintain the parity o. the entire volume
OF about $40, eeo.aao. The suggestions Of
Col. Trenholm regarding banking are as
follows.
Ftrss-~To make provision for the recog-
milton OF existing clearing houses and the
establishment OF others hy allowing them
10 be organized In reserve and central re-
serve cities under the national banking
s~. "ita Defined powers and responsible
ties.
second-To empower clearing houses
thus organized. TO license banks In their
respective cities to accept circulating
crafts drawn by banks situated al places
where there are no clearing houses. Such
drafts to be free OF ali 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
certain proportion OF Its capital and sur
plus.
Fonrth--To prescribe that no such banks
De licensed TO accept such drafts without
taking from the drawers adequate secur-
acceptance. 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 sufficiency OF such
security, both In amount and character,
10 be certified In each instance separately
TO the comptroller of the currency by the
proper authorities OF the clearing house
and approved by the local bank exam
liner. 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 de-
struction
fifth-The circulating drafts, authorized
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 prescribed by the
comptroller OF the currency. The amount
Of drafts OF any such drawer outstanding
al any one time to be limited 10 proper
ton of its quick assets, including those
held by the accepting banks.
Sisth-The circulating drafts so author
lied shall be of uniform design, and NAV
be in denominations of 81. ST. 81. s. and
muitipies OF Ave dollars. having engraved
upon 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
rency and issued TO each clearing house
ASSOCIATION, upon its requisition made,
from time TO time under regulations to be
established by the comptroller of the cur
rency
Eighth-This plan. IL adopted. il
expected TO work out In the following mar
ner.
a clearing house association will from
tire to time make requistion on the comp
troiier Of the currency for certain amount
Of such circulating drafts. TO be accepted
by certain named banks, members of that
association. The hanks for whose benefit
such circulating drafts arc called for viii
satisfy The authorities of the clearing house
association OF their compliance respective
" with the requirements OF the system;
whereupon fssues VIII be made to such
10 be allied in the name % the drawer. and
then execute it's acceptance upon the face
~ the drafts. These drafts may be sent
as Incomplete currency is sent
through the mails. or by express AT
moderate charge and they will not become
effective for circulation until duly sign
I'd by the drawers When signed they will
he paid out by the drawing bank or banks
'or local Use first and will gradually find
heir way back 20 the accepting hanks. by
which they viii he redeemed and sent 10
he clearing house. in order To release n
''ropertionate amount OF the securities there
lgeid against such issue.
The object az this suggestion Is TO enable
anks az remote points throughout the
Heuntry 10 meet the local demand for cur
~ency when II arises. and only when II
arises, and at the same time 10 limit and
control suck issues through the operation
u the principle Of SELF -psesectlon. which
VIII assert itself In re manage Fnent OF the
accertina hanks.
Regarding the aeposi; OF the silver dollars
ana silver certificates Col Trenholm sug
tests that the silver now in the treasury
be constituted into a reserve fund for thu
guarantee - outstanding silver notes ami
hat the silver certificates W. excess Of the
setuai bullion value OF ;he cosns and csr
sffcates outstanding be Cancelled from
in1c TO time as they come into The treas
NV He recommends hat silver eertif-
stes ht Issued In denominations of st0 and
seer and that some of them ne issued in
denomination % 81 coo. = ooo ard $40 so0 r.
order that they may he held by National
hanks in the proportion ~ 20 per cent. of
,hcgr lawful money reserves.
Gel Trenholm suggests an international
agreement among silver producing coun-
tries for s,sady3ng The price ~ silver 10 s.
parity with gold by the regulation Of the
price. SO as 20 give the assurance TO the
worlds commerce tlsat there can Ne no
further material decline In the price.
THE. EMPEROR PLANNED II