The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-08-12
that is produced by mining will be added


both in circulation So it was in specie-paying
times in our own country, except that the paper
money being then issued by State authority
was of limited circulation. And now under
our admirable System of United States notes
aud national bank notes both could be main
tanned in circulation at par with gold,and torn
a currency as safe and perfect as human lngc-
nuity has ever devised. All labor and produc-
tions would be measured by an Interchangeable
standard. and all the money would circulate
that was necessary to purchase at the gold
standard every production of human industry.
A GREAT ERROR.
Sometimes it is said that the recent panic
was caused by the want of currency, or con-
trae ton of the currency. This is great error.
In September 1S73 when the panic conlmen-
ced the amount of United States notes out
standing was 1856, 900, OF fractional curren-
CIV 81, ZOO, 900, and of bank circulation $780,
100000, in all $40, O0O, 900, or more than it
ever had been before. The panic came with
| this vast sum af1oat, and Secretary Richard
son, without authority of law, issued $4,000
| 900 more Of United States notes. for the lauda-
Bile purpose. as he thought, Of casing the mon
ey market. 1t nearly all went into banks, and
there remains in unbroken packages Ii flood.
| ing country with currency would prevent a
| panic or stop one, here we had a trial. But it
was only like pouring oil on fire. 1t is demon
strable that nearly all panics, except only such
as are traceable to war, famine, or like causes,
| spring from expanded credits, and, in many
cases, from excessive papor money. Over pro-
| duction is the inevitable result; improvident
contracts, improbable enterprises, and wild
specuations always follow expanded credits,
whether by corporations, banks or individuals.
Infiaton-the very name implies buoyancy,
| expansion, gas, destruction; and slas, the des-
| tructon often falls ON those who did not breed
1 cto hot tipoa hos OVau q fu1l
view Of the expanded credits and improvident
enterprises of 1873, we only wonder that the
wreck was not more overwhelming and endu-
ring. Surely prudent, sensible men who will
study such financial waves must conclude that
the only remedy is to reduce credits to sub
stantial basis A few articles for a time will
not sell because there is no demend for them,
or there is an over-supply. But this soon pas
ses away. Industry is gradually reviving, and
| Row is the time to base our enterprises upon
specie paying money, and upon thrift, industry
and economy.
WHY THE EXCESS of PAPER MONEY.
But we Republicans are often told that if
gold is the standard value, why was paper
money issued at all in excess of abe amount
that could be kept at par in gold? The answer
is that it was issued under overwhelming ne
cessities of a great civil war. | remember well
the circumstances connected with the first and
all the succeeding issues of United States notes,
| and took as effective a part rs anyone else In
providing for their issues. 1t was in February
| 1862 after all the banks had suspended specie
| payments, when our armies had made no prog
ress, Our revenues were cut Oft by the war and
our expenditures were more than Sl,0O0,O0O q
day. There was then lying on the table OF Mr..
Chase Secretary of the Treasury, acquisitions
for over 10000, 900 to pay our soldiers and to
supply them with food, ammunition and trans
potation. Our bonds could not be sold for
there was no currency to Fay for them. We
| haG to issue notes of the United States in the
form of currency, and yet as part of the pub
lie debt. The only question was whether they
should be legal tender between individuals in
the payment of debts. Upon this point had
clear convictions. felt that if our soldiers
were to be compelled to take these notes as
money that we were bound, if we could to re-
quire every body else to take them as money.
| We could not leave them to the tender mercies
Of creditors, shavers and unpatriotic men, who
would gladly deny and repntiate these notes.
| We therefore made them legal tender, and the
| Supreme Court has upheld our power to do so.
| But we took every precaution to prevent their
depreciation. We carefully limited the amout;
we made them a legal tender in payment Of
all debts and we made. them convertible into
bonds, the interest of which was payable in
| gold and the duties or taxes OF imported goods
were made payable in gold, SO that we would
| have an ample fund in geld to pay the interest.
After all this we limited the amount beyond
which we would never go at, $1,000 .00O
Such was the care and solcitude with which we
hedged in the gyeehbacks, and every dollar of
of them was issued with all understanding
and declared public policy that after the war
was over they were to be redeemed in gold.
The great error in our financial policy was in
repeating instead of suspending during the
war the right of each holder at his will to con-
vertnhis greenbacks into bonds. This would
A.
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