The herald., 1897-11-22
WHEN THE DOCTORS DISAGREE
THE PEOPLE MAY DECIDE FOR
THEMSELVES
Expert Trenholm Clings to the Gold
Standard, But Affords Silver
Quasi
Associated Press Special Wire.

Il. Trenholm, who was comptroller Of
the currency under President Cleve-
lands first administration, has Just sub
the monetary commission. They en-
brace number of features entirely diff
ferent from those of other experts. and
they have been carefully studied by the
commission during several recent ses-
sions. Col. Trenholm recommends the
fusion of the greenback and Sherman
notes into one form of paper redeelna-
bic in gold He thinks that these notes
should be issued in denominations of
81, - and s., in order that the people may
have confidence in the money in current
circulation. He believes that redemp-
ton fund Of under $i00, 600, 000 would be
sufficient to maintain the parity of the
entire volume OF about S450. 0.00O 900.
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 % others, by al
lowing them to be organized in reserve
and central reserve cities under the ma
tional banking law, with defined powers
and responsibilities
2. To empower clearing houses thus
organized to license banks in their re-
spective cities to accept circulating
drafts drawn by banks situated at
places where there are 10 clearing
houses; such drafts to DC free from all
taxation, federal, state or municipal,
and to be payable t. bearer.
3. To limit the maximum amount 20
which any sucl, bank may have accept
ances outstanding at any one time t.
q certain proportion of its capital end
surplus.
4. To prescribe that no such banks be
licensed to accept such drafts without
taking from the drawers adequate Sc
curity therefor to the full amount of
such contemplated acceptances, which
security may be in the form of discount
ed paper; also without having deposited
with the clearing house security to the
amount of the circulating drafts ap-
piled for, the suiiiciency Of such security
both in amount and character to be GER
titled in each instance separately to the
comptroller of the currency by the prom
er authorities of the clearing house and
approved by the local bank examiner
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
destruction.
3. Circulating drafts. authorized to he
81 =;
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 a any one time to be limit
ed to q proportion of its quick assets. in
Guiding those held by the accepting
bank
6. The circulating drafts so authorized
shall be of uniform design and may he
in denominations Of 81, 81, $5, s. and null
tiples of S., having engraved upon their
face the name of the accepting bank
with blanks to be filled with the names
of the drawers.
T. Such circulating drafts to be pre-
pared by the comptroller of the currency
and issued to each clearing house asso-
citation upon its reQuisition. made from
time to time, under regulations to be
established by the comptroller of the
currency.
s. This plan, if adopted, is expected to
work out in the following manner: A
clearing house association will from
time to time make requisition on the
fI.
amount of such circulation drafts. to be
accepted by certain named banks. NOM
bers of that association The banks for
whose benefit such circulating drafts
are called for win satisfy the authorities
of the clearing house association of their
compliance. respectively, with the re-
quirements of the system. Whereupon is
sues will be made to such banks, and
each of such banks win cause to be filed
in the name Of the drawer and then
execute its acceptance upon the face Of
the drafts. These drafts may then be
sent as incomplete currency, as now sent
the mails. or by express, at a
moderate charge, and they will not be-
come effective for circulation until duly
signed by the drawers. When signed
they will be paid out by the drawing
bank or banks for local use of the first,
and will gradually find their way back to
the accepting banks, by which they will
be redeemed and sent 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 en-
Die banks at remote points throughout
the country to meet the local demand
for currency when ii arises, and only Is
it does arise, and at The same time to
limit ard control such issues through he
operation Of the principle of self-protec-
tion, which viii assert itself in the man
agement of the accepting banks.
Regarding the deposit of the silver
dollars and silver certificates, Colonel
Trenholm suggests that the silver now
in the treasury be constituted into a
reserve fund for the guarantee of out
silver dollars, and that the sill
yer certificates in excess of the actual
bullion value of such coins and certifi-
Gates outstanding be cancelled from time
TO time as they come into the treasury.
lie recommends that silver certificates
be issued in denominations of $40 and |
over, and that some of them be isused in
of $1,000, $4,000 and s1O. 600
in order that they may be held bv ma
tlonal banks in the proportion of 20 nor
hntp To-, ,c,,I.