The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-08-26
sTAUNTON VIRGINIA. THURSDAY. AUGUST &c. 1876.

haretofore. Still. the field is such an invitn &
one for the lobby and the speculator, that we
do not imagine that we have done with the ag-
itaton of such schemes .'for good and aye.'-
They are not killed, only scotched.
Fallacy No. lies in the idea that all tflat IS
requisite to revive the dropping energies OF
trade and set in motion the wheels of industry
is s,more money! and that more greenbacks
will be equivalent to more money. Here, as
in the former case, are two fallaces linked to-
gether. More greenbaeks are not the eqllva-
lento of more money. In spite OF governor
Allen to the contrary, the government stamp
cannot invest bar of iron with the same nlo-
etary value as a bar of gold, or make piece OF
leather or paper the equivalent OF either. A
five-dollar treasury note (greenback3 is MOI I'VE
dollars. 1t is only upon the face OF ia prom
Use to paw five dollars. 1t may be, by act OF
Congress and the grace of the Supreme Court,
currency, but it is not money. But just as IN
the case of cheap transportation, the delusloh
of CHEAP money has been within the past year
put to the test and thoroughly exposed, though
many of our friends out West and down South
seem to see it. Ii there be any virtue Ill arlth-
metic and figures that cannot lie, the following
statistics may help them to a clearer vision OF
the TRUTH On OF about the list OF July last
the amount OF egal-tellcer notes held IN re-
serve by the associated banks of New York
CITY was S73, 1872 900, an amount never before,
except once for two weeks in 1871, equaled.-
At the same time the specie reserve OF the
Bank of England was sl33.000,0 900, an amount
never but once exceeded. and that also IN
1871 The specie reserve~of the Bank OF
France at the same time was 93l3, 900,
600. all amount without parallel in the history
of the money market and of banking. In 9TH
er words, the amount OF idle money in the
worl ! has never been greater. Consequent
ly the rate of interest has everywhere been eX-
ceptionally low, and the tone OF the money
market been proverbially easy. Still trade
has refused to revive, and the wheels OF llldtis-
try have continued to move slowly. But, it
will be objected, it is not the general scarcity
of money that is complained of, but its une-
DUAL distribution, leading to its accumulation
in excessive quantities at the great centres Of
financial speculation, while the channels in
which it ought to flow, those of legitimate trade
and industry, have been almost dried Up Tor
the want of it, Provision was made at the
last session of Congress for this contingency
also, aud experience, that terrible enemy OF
false reasoning and sophstries in matters OF
economy and finance, has demonstrated that
the South and West, the two quarters from
which the complaints Of an equal distribution
of the currency come, have signally failed to
avail themselves of the opportunity to organ
ize additional national banks and to secure an
additional amount OF currency. Evidently,
neither cheap transportation nor more curren-
cy, nor both together, are the panacea for dull
times which has been represented. The bust
ness Of the country, when it revves, will spec
Oily and surely rectify all the inequalities in
the distribution of the currency complained OF,
and competition will just as surely provide
transportation as cheap as is consistent with
the reasonable profits Of those who build ana
operate railroads, whenever the business OF
tile country furnishes the needful demand and
stimulus. To reason in any other way, or to
call for more currency in order to make bust
ness or cheap transportation in order to ere
ate a market and improve prices, is simply mis-
taking effect for c; use, or, in plain English,
putting the cart before the horse"