Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1872-01-23
A New View of an Old Subject.

some suppose TO De, reQunQant Currently,
everybody remarks that there is but little Of it
in circulation among the people. 1t is either
accumulated around the commercial centres,
or it is locked up in Banks, awaiting invest
ment. The monied spectators are like hawks,
waiting to swoop down upon some oppressed
debtor, and gobble up his farm, or house, or
personal property. They sit on a pinnacle
and watch the favorable opportunity to make
their fatal dart.
We have, in former numbers of our paper,
sought to show to our readers that this un-
natural state ofthings sprang from two causes:
lst Distrust of our law-givers; and
End. The abominable - per cent. law.
Whether our solution of the matter was right
or wrong, we must all admit the fact, that there
| is little money in circulation, and that it is
difficult thing to get hold Of enough Of IT to
pay our debts and taxes.
This being the fact, sensible men would nat
urally conclude, that everything that tended
to add to the stringency of the money market,
would be avoided. While all measures that
were calculated to enlarge the volume of cur
rency, would be eagerly embraced by the Leg
| isature.
Yet, by a strange perversity of temper, or
obliquity of mental vision, our lawmakers
have adopted exactly the opposite policy
Their measures have tended, directly, to ag-
gravate the ills we suffer, by diminishing the
volume Of the available medium of exchange.
Now for the proof By the provisions Of
the Funding bill, the coupons, on the funded
bonds, which ranged In amount, from S. up
wards, were made receivable for taxes. These
coupons passed by delivery, from hand to hand,
like Bank notes. They were in convenient
shape fer circulation, and in convenient
amounts. While they were not exactly money,
they possessed many of the qualities, and could
perform most Of the functions of money. They
that they were receivable in payment of taxes,
licenses, and all public dues, would have given
them, after maturity, almost as ready curren-
cy as Bank notes.
The Auditor estimates that there are Twelve
millions of dollars of State bonds held in Vir-
ginia-coupons are attached for the semi
annual interest. Whether they be registered
coupon, Or regular coupon bonds, coupons are
annexed
The interest on these twelve millions of
bonds,-if there was that amount of CONSOLE
dated bonds held in Virginia, -woud be $780,
900 per annum, or $36O,0O0 every six months.
But suppose only eight millions two hirds)
were held in consolidated bonds, the annual
interest would be $3.50. 900, or nearly halt
million dollars, or $4,000 at the end of each
six months.
On the 1st of January and July Of each year,
therefore, $4,000 of coupons would have
been in the hands of our citizens, which would
have been quite as available as greenbaoks, to
pay taaces, and almost as available to pay debts.
Every man would be ready to receive, from
bis debtor at least as large an amount Of cou-
pons as would be required to pay his taxes
If the Funding bill had not been suspended,
there would have been, on the 1st January, in
the hands of our citizens, a practical addition
to the volume of our currency. Of at least $240,-
600! Everybody must see what relief this
would have been to our people. Instead OF
having to raise greeDbacks, to pay taxes, to be
locked up in the Treasury, they could have
used coupons, and left greenbacks to ell the
channels Of circulation.
An addition Of $3.50, 900 to the currency of
our State, would have greatly eased the pres
sure il the money market. It would, too have
been perpetual supply. As fast as one set
of coupons were absorbed, into the Treasury,
another would be maturing, to take their place.
The practical result would have been almost
equal to an enlargement, to that extent, Of the
banking capital OF the State. 1t would have
given new life to business, and facilitated all
the operations of industry.
These coupons, too, would soon have been
used as medium of exchange, and 10 the pay
ment Of debts. They might even have been
anticipated, and used as currency, discount
ing the interest until maturity. The large de-
mand foT them for payment Of taxes, would
have been guarantee against depreciation. -
But suppose they did depreciate. So much
the better for the tax payer, if he could buy
them at discount.
We are persuaded the members of the Leg
islature have not considered the matter in this
aspect. They profess to be, and we presume
they are, actuated bya desire to give relief to
the people. But they have made sad mis-
take in carrying their purposes into effect We
beg them to pause and make the experiment.
Experience is the best teacher. Let Us try it.
We venture to say that nothing that has yet
been suggested, would contribute SO much, to
raise the spirits of our people, and to infuse
new life into business, as this addition to the
available medium Of exchange 10 Virginia.
Another good quality, belonging to this kind
of currency, is, that it would remain in the
hands of our people. 1t would not be sent
abroad to purchase goods. It would only cir
culate at home. and be used in the business
transactions of our citizens with each other,
and in the payment Of taxes and licenses
Taking this view of the matter and we be-
lieve it to be entirely sound, We are Of the opin
ion that these features of the Funding act,
instead Of being oppressive and injurious to
our people, would, if allowed to go into OPP
Grafton, be followed by consequences of meal
culable benefit to our whole Commonwealth.
The New York Star hits the nail on the head
when it asserts that no one has ever shown
himself more bitter foe to labor, and more
devoted slave to capital, than Ulysses S. Grant.
Throughout the whole Of his life he has been
| i;o4ir For fh;o led