The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-11-04
REpuNaENr TO EVERY IDEA

upon the Treasury of the horde of applicant
that would spring up and organize thcmselve
for sharing in the hundreds of millions of dol
lars that Government would have the oppor
tunity to dispose Of. The rings that would b
formed would be too strong for the virtue o
Congress to resist them, or for the power 0
the conservative public to put down. Thu
very fact of hundreds of millions OF new
greenbacks being for disposal would inspire
ravenous hunger and claulor for the boot,
which could not be resisted.
But even il every dollar of the proposed
hundreds of millions of the new issue wer
put out by the purchase OF existing Ulitet
States bonds, yet, even in that event. the.
would be issued on initiation principles in
way that would render their depreciation in
evitable. Business men, seeing this deprecia
ton to be certain, and not feeling competen
to estimate how great it would be, or how fire
quent and how considerable its f1uctuation
would be, could not afford to make any 0
their contracts with reference to such Il Cur
rencY, but would base them, from necessity
upon gold and silver values. We should hav
A REPETITION OF THE INITIATION OF TIKI
WAR,
without the existence of any great patriotic ne
cessity impelling the people to give credit tt
the currency.
The pressure of the times cannot he removed
by a measure so irrational, dangerous and in
etfectual as initiation. The country cannot af
ford TO embark in q policy so dishonest, SO dis
honorable. and both commercially and politi
cally so pernicious.
AS q war power, the issuing Of paper money
and making it legal tender by the Genera
Government is not likely to be denied. But
think it will be subject Of much future re
greet that these acts such have been decided tt
be embraced in the coinage powers of the Ma
tional Government.
But have never thought that contraction
was the proper method of bringing our paper
currency to a par with gold. The plan was tried
in England during her suspension from 1S0(
to 1920, and signally failed. have said
enough to show how improbable it is that the
Government currency can never be brought tc
par or maintained at par. I believe that the
national banks could. long before this time,
have made the part OF the circulation issued
by them equivalent to gold but for
THE DISTURBING ELEMENT OF THE GREEN
BACKS.
I fear that these banks have made them
selves unpopular by the exorbtaut usury
which many Of chem have charged the people
in their loans. / believe that the present ma
tional banks constitute the best system of
banking ever devised, but I fear we are in
great danger OF losing the system because Of
the extortionate interest which too many of
them have cxacted from the people. They
could now very soon bring the part of the cur
rency which they have put out to the specie
value, If there were no grcenbacks in circula-
ton. They eorld, if they had liberty and ii
there We're no greenbacks, issue four hundred
additional millions OF national bank currency,
and still keep them at par with specie. They
would effect this equalization OF their notes
with specie by taking care, in putting out new
notes, to do so Oh the true currency principle
of preserving the essential equilibrium which
have described between the etflux and reflux
the issuing and ret,lrn-of the CURRENCY. I
fear, however, that their popularity is too near
ly destroyed for their competency to restore
our currency to the standard value Of specie to
have ali opportunity to be tested. 1t is to be
said to their credit that they have, as Il general
rule, been less eNtortonate than most Of the
banks which Are operating under State laws.
l repeat, that
CONTRACTION. is NOT THE PROPER METHOD
of bringing about the restoration of the paper
currency to specie value. believe that there
has been All ulliue contraction, and that it
has been carried so far us to have become q
curse to the country.
Nominally. indeed, there is nearly as large
an amount OF national bank and greenback
currency in circulation as ever, and, apparent
ly, there has been no contraction. But, in
fact, much OF the currency has been locked up
by bankers and spectators, and allowed to
remain in circulation. | have seen it stated
that in New York city alone one hundred and
forty millions Of the currency has been thus
locked up. How much more is held in Boston,
Philadelphia and other money centres it is not
for me to say, and the public are not allowed
to know.
The process said to be adopted is very sim
pie, if it has been correctly described. A
wealthy SPECTATOR has a hundred thousand
dollars on deposit in Il New York bank. lie
checks for it, and has the money sealed up
when it is paid him, and on this sealed pack
age OF C lrrency as collateral he borrows nine
ty ora hundred thousand dollars more at three
or four per cent. per annun. He checks out
the ninety thousand newly Borrowed. and
rows more money on the new collateral; and
this process he repeats us far as the banks will
allow it to be done.
This is what is reported of the means OF
forcing contraction adopted in New York,
and is is also told that the contractionists de-
clare their intention
TO CARRY ON This POLICY OF CONTRACTION
until|the real estate Of the city and country is
brought down 81 per cent. in value Real es-
tate has long ago sunk below that point Of de-
probation in The country. This sort OF con-
traction. and every other sort, is paralysis to
the enterprise and conHscation to the property
of the country.
BY those and other means familiar to Wall
street the volume OF currency in circulation,
instead of being seven hundred millions Of dol
lars, us indicate by official reports, is proba-
bly, below five hundred millions. And the
and has been thus yictmized chiefly by New
York city, city in whose growth and wealth,
and ppulence it has always felt
an eXultant pride.
Indeed, i'll large sections Of country this
scarcity of currency is SO great that the peo-
pie are already reduced to u state OF barter
There are no means Of making purchases, cx-
cept by first establishing credits in banks and
giving checks instead OF money. The interior
banks are thus tempted to eXtort heavy llsury,
and many OF them are declaring 20 to So 'uer
cent. dividends to their stockholders.
The effect OF this condition vi things upon
our colorcd population is depiorlbe. AS Il
class, they are without credit, and their well
fare depends upon receiving their dues in mon-
ey. When these have to be made the subject
of running Or standing accounts, the eoildi-
Llon of this class OF llborers becomes pecu-
liarly unfortunate. The emancipation OF this
tive millions OF population, all requiring ready
money in their dealings, stroligly forbade amy
undue contraction OF the currency.
The result vi the contraction which has been
inflicted upon the country is the eNhorDitant
rates OF interest everywhere eXacted; rates
which no business can bear. and when para
lyzes every species OF enterprise; the effect of
which, especially upon the South, is tile de-
probation of our r:al estate to values as pita-
BILE as they are absolutely ruilous to its own
erS. WarS are ALWAYS followed by 1enraci..