The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-09-30
SEAFIELD, WEST HAMPTON. n. T.,
Septemher 10, 1875.

every act of Congress authorfzinga loan, a pro-
vision was inserted laying tax to pay the In
terest. we could borrow ali the money needed;
| and am satisfied now that we should, in that
case, have contracted from five hundred to
| thousand lnillions less of debt. agree with
you In regard to the reversal of the decision Of
the Supreme Court Of the United States pro-
nouncing the Legal Tender act unauthorized
by the Constitution; and regret it the more, as
1t appears to me to be error calculated to inn
pair public confidence In the justice we'll the
stability of the judgments OF that tribunal.
The act virtually declared that man who had
lent his neighbor gold should take paper irre-
deemable in specie in payment OF his dcbt-a
proposition abhOrrcnt to every principle OF JUS
ticc, and to every conception of a government
OF limited powers. You say. SIT isby no means
certain that the Judgment. in IL Wallace,
will not be reversed" and the act again de-
clared unconstitutional You and may not
live to see it; but l am greatly mistaken it that
will not be the result when the present infatu-
alton in regard to the issue Of paper money, ir-
redeemable in specie, shall be corrected by the
intelligence and integrity Of the people, or when
the infationists, If they secceed in accomplish
ing their objects, shall bring bankruptcy and
disgrace on the Government, and involve the
industrial interests Of the country in irredecm-
able disaster.
I expressed in my official papers as Governor
Va Vic kststts' Va ANCW 4oTk my uisttppTOVM Ill
such unmeasured language of the continuaee of
the legal tender act in force during the years Of
pcace-an act no man attempts to defend ex-
ceps as war measure-that need not say how
deeply ] deplore the failure Of Congress to re-
peal it. We were setting an example of in |
justice and bad faith which would warrant any !
abuse Of the powers OF Government I look |
with anxiety to the result Of the pending contes |
between the advocates Of retleemable and ire |
deemable paper money. 1t is beyond all ques |
ton the most important issue to he tried by the |
people at the next election of a President; and |
it the principles proclaimed by the Democrat |
ic party in Ohio prevail. can see nothing in |
prospective but disaster and disgrace.
There are two assumptions in the argument |
in favor OF an irredeemable paper currency |
and of enlargement OF its volnme, the falla- |
cy of which is demonstrated by the most super |
fetal acquaintance with statistical facts.
l. That we have not currency enough to
transact the business Of the co ntry; and
3. That the business Of the world has so
enormously increased that it cannot be transac.
ted on a specie basis. ss s.
10 the first OF these assumptions it is suffi-
Gent answer that money is loaned on call
every day in the city Of New York at two or
three per cent. per annllnl. and at definite PEI
rods of time at half. or little more than half.
the legal rate established for the State. have
very recently borrowed for an institution with
which am connected $50. 200 at four per cent.
per annnm, for periods varying from three to
nine months. There has been no period since the
war SO great superabundancs of paper money
as there is at the present moment. believe it
perfectly safe to assert that there are two hum
dred millions of Government and bank paper
in circulation which cannot find employmentin
the legitimate channels OF business, which cam
not even be profitably used for peculating pur-
poses. and which are therefore loaned at rates
OF interest low beyond all example in the
United States. i" 6
The second Of these assumptions proceeds
upon a total disregard Of two well known facts
First, that vast increase OF business may be
transacted by means of bills of exchange and
other commercial facilities with very little en-
largementof the paper circulation or the basis
OF specie by which it is supported; and, sec
end. that the abundant production of precious
metals during the last hundred years has not
only greatly diminished their purchasing pow
err, but has SO exceeded the demand for them
as circulating medium as to furnish large
surplus for ornamental purposes and domestic
use. IN the United States alone during the
last twenty-five years we have produced, as
nearly as can be ascertained, over fourteen
hundred and sixty-seven millions OF gold and
silver During the same period we have eX-
ported of our own coin and bu lion over thir-
teen hundred and twenty-eight millions-at
least four times as much as is needed to sustain
the whole paper currency of the country, even
in its present inflated condition. During the
years 1871, 1872 and 1873 the average annual
product of our gold and silver mines amounted
to $50, 000.0 600. Attic same rate we shall pre-
duce enough in the next three years to war;
rant, it kept at home. a resumption OF specie
payments in 1879, and preserve the plighted
faith OF the Government from violation. 4
In the face of these facts it is difficult to con-
ceive how any man having q respect for his
good name should oppose resumption of spe-
Gle payments on the alleged ground OF dcf-
cheney OF the precious metals. I'd
The contest before us Is to be severe one,
and we should not underestimate the hostile
force we shall have to encounter. 1t will en-
brace ths ss 80 aAIs fse$a -
!. Professional politicians, who think the cry
of .'more money! a. popular one, and whose
advocacy Of public measures is usually shaped
by this narrow and selfish consideration.
2. Manufacturers. for the purpose OF keeping
up the price of gold, or rather depressing the
value of paper money by adding TO its volume
and thereby securing virtual increase OF the
impost On foreign products which come in COM
petition with their own, thus accomplishing all
the ends Of higher tariff OF duties OIL imports.
8. A class Of theorists. who do not scruple
to set mp their crude opinions against those OF
the most Intelligent statesmen and the most
able and profound political economists Of the
age and WHO, regardless Of all the experience
II mapki1ld hold an inflated and irrcdeemable
l,japer currency to be an element Of prosperity,
when every community which has tested it has
found it source Of individual ruin and nation
al disgrace.
A. A wel-meaning, but hopeless. class OF
persons who honestly think that mere money
Of any kind must be beneficial to them, and
vino cannot be made 10 understand that two
paper dollars worth fifty cents each III gold are
| Of no greater value than one paper dollar worth
| its face in gold. .sst4
The most formidable corps Of the army Of
inflationist-the dishonest portion Of the debt
or interest Of the country, who are aiming to
nav their debts in deprecated paper. and 70
defraud their creditors Of their just dues; tor Il
the paper currency can be SO augmented - TO
reduce it fifty per cent below the par Of
specie, man who owes $1,000 can pay his
debt with 5000. But it is a fatilaty OF nearly
every species OF injustice and fraud
/ that the means by which it seeks to effect it's
lot8ect almost always defeats il. lThe debtors
WHO desire to detraud their creditors bymsking