The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-08-05
I'm Tlloh Credit.


The expansive credit that has infused itself
ito the business CT this country is one great
cause Of the depression that is now universal
II felt through all the ranications OF trade
Some idea CT the extent of the transactions ba-
sgd upon credit and trust in the uncertain fu
tire. may be formed from the fact that since
1878, it is computed there has been in the Uni
ted States default in interest OIL railroad mort
gages to the rar value Of $780, 900, 900. AS
contemporary says ''Yet this is but single one
Of the various channels in which credit flows.
Isasiles this there is the public debt, the debts
Of States, counties, towns and cities, the sums
owed to and by the banks, the life and fire in
surance companies, and finally. the entire fab
ric If commercial and pfi,ate credit. 1t is OBJ
Niously impossible for any man, or set Of men,
to have any knowledge of more than very
smalI part of Ills great mass of credit
When we calmly survey the field that is
epened I'D 20 us for reflection, iii connection
with this vast system Of credit-the adventures
and di>appoint;ncn;s-tise constantly fleeing
fortunes 5liat lure and stimulate the nerve and
the ambition OF man, never to be gra@ped and
realized, we cln III measure, give reason
for Tie rovstlsion that has taken place and
spread its depressing Influence throughout the
eoantly. NilA basis fol business SO llisnsy
ana tlnctaatng it required misfortune TO over
take but i single establishment, operating up
Oh ,aiea scale. to affect the financial relations
q AZ private enterprises, Ct similar depcudeu-
cr, retire confidence, and stagnate industries.
(Nlson we consider the vast business chat was
&.sectly dependent upon tle solveney of jay
Coo3e : Co., and She general system OF credit
t1l.I pcr.2t!ed all commercial relations bar.
ls6ai1lnm wiill the business policy that con-
tts'led tals1, The wonder is that the bubble
I'D not loHs ago burst and the strained cred
it'0f the country collapse.
E',ie extraordinary impulse that was given to
tic energies Of restless and daring people, by
tic vast volume CT currency issued as war
necessity, and bcqueathcd to us as q war lega-
G., led them into fields of speculation and en-
terplise not justified by our material develop
ment, and consequently inconsistent with that
solid and enduring prosperity which results
ftolI n0r3is;;. cause and effect We were llF-
Ing IN al atmosphere OF Observation-Disclosures
values were covered by spirit of eXtravagant
i1iation. wild credit extended enterprises even
i,ay9u1 the limits Of an excessive currency, and
when lie probe WAS applied to these airy ven
ta-as, the collapse WAS sudden and disastrous,
ia.ac i4.9r Fortunes disappeared as the mist,
Hasl rs the current Of disaster swept on, it left
l,5s few substantial evidences OF the supposed
]i-, perky that signalizedt the period of stupen-
SIS railroad enterprises, and unparalleled
,..,,l cat adventures.
t7f course the reaction from these results OF
al il1iatcd currency stimulating individual Ct
forts, was severe and oppressive-a setback
that was not TO be recovered from by any extra
ordinary process. 1t was the result Of an cS-
cess, uau could only be corrected by the
slow process Of time. T!le vast system OF
credit based upon q currency issued, net fol
the Pursuits OF peace but the demands OF war
Ind MN its course, and the penalty was ruin
Jas in many instances, at the same time il
In7oved !; lesson. indispensable for the perna
lent growth and healthy progress OF th(
country.
We may safely assume that the common
sense OF the people comprehend the situation
that they understand that presumed prosper
ify based upon an excess Of iITedeemable cur
rencv-a medium Of exchange representing TIC
tangible substantial basis, but simply a sign
of CREDITS not that condition OF things whIc!
gives assurance to labor and invites the earnest
ioilar 10 ply his muscle for a fair remuneration
u hat the masses want, is the certainty OF Tie
values thew labor for-sOmething that is sub
sSantial. that has intrinsic and enduring worth
and no specous promise based upon inflated
and uncertain credit.
Tie credit, on the part Of the government
demanded by the exigencies OF war as reflected
III the volume of paper money at its close, had
Fae, cultivated by all classes, and through al
tie ramitications Of trade, until the revulsioi
of 1873. The people did not stop to think O.
fIla OCCASION for the issuing Of this currency
and rushed on under the stimulus OF a specula
Tire spirit as though the material development
If fle country had justified it. In every brancl
a. business adventure was the rule, aud wher
Ger purchases could lie made on time, they
we're rccklessly embarked il, hoping that some
ti.'l in the wheel OF fortune would eratle them
H. meet tileir obligations. But excess Of trade
ttlf1cr tic influence Of an inflated currency
tel limit. and when reached the inevitable
md LOGICAL reaction lad to commence. Two
Vcags uf experience i'll tAc mcshes Of debt, de
fassion il business, and prostration of indus
tries incident 10 the reaction, have had the eff
cJ to check the impctuous spirit that had
hen wildly careeling over the country, and
as .ae people to conclude that no business
transactions can be safely con Quoted without
reference to q substantial basis.
There has been too much credit in the coull-
II, and the sooner the people in all the rcla-
IONS OF business come to understand that the
si!.est way to deal is to pay as they go, the
j,.tcr Il will be fol them. The revival period
IL, commenced. Confidence is being restored,
and With prudence and energy the country
will gain spring forward in active develop
'.saa., regulated by legitimate and healthy de-
ntafs. The Ordeal through which we have
Ias,'d VIII prove OF Infinite benefit, syperindu-
chg ca4iti9n aiIl economy, thus giving solid
s5ae4N.i0A for whatever OF progress we may
.4al@e. BY each worker living within lis
"a ags keeping Out OF debt and earning his
tl2.ey 3alore spending it, we may reasonably
k 1JrHarl TO 3 period of abundance and
1t, tint VIII not vanish at HE first Whit
t "a, n1tnt, q az MT