The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-11-04
" cents rhis is not only wrong in respect

the country is just in such condition in res
pect to this false measure OF value as it would
be in if all the pound weights OF the country
were less than pound, and all the yard-lReas-
ures less than yard, varying IN weight ana
length each week. and often each day ii. the
year. Is this sort of money such as ought to
be tolerated by great people, an honest peo-
pie? [ think not. All other civilized nations
have fixed and true measures OF length, weight
and value. Why shall we not have q fixed
and true measure of value as we'll as of length
and weight? The fixed and true measure of
value in this country, recognized as such by all
nations who deal with, rs, is the gold dolar.-
We shall never get right in our affairs until all
the dollars used in the business of the country
are
WORTH THE VALUE OF GOLD DOLLARS,
whether they be gold, silver or paper. Epgi,
neers measure the height OF mountains. the
breadth of rivers, the distance OF remote objects
difficult OF access by scientific methods. 1t is
not necessary for them actually to use the yard
stick or surveyors chain in making such meas
ureraents; but it is necessary for them to know
the true length of the yard before making their
observations and calculations. So it is not nee
essary actually to use gold dollars in our small
dealings Of business or great transactions OF
commerce. But it is of essential necessity that
the money which we use shall he worth AS many
gold dollars as it purports to be worth. The
actua! employment of the gold dollar is unnec-
essary, but it is absolutely necessary to the
honesty and certainty OF business that the mon
dollars.
The reasons why the greenback currency
does not and has never represented gold dollars
may be very numerous, but I think a principal
one is, that the currency is put into circulation
ON imitation principles, and not on currency
principles.
THE CURRENCY PRINCIPLE
of issuing circulation is this: If, for example, a
bank has u hundred thousand dollars of its cir
culation to lend, and lends it on negotiable pa
per due at sixty, ninety and one hundred and
twenty days. the demand that will arise for its
notes for the purpose of paying off the nego
table paper at maturity will be just equal to
the supply which was put in circulation and,
if the debtors to the bank are solvent, there
will and can be no depreciation OF this circtlla-
ton. In respect to this hundred thousand dol
lars of circuat ton what the British writers call
the etflux and reflux Of currency, Will be equal
to each other, and there can be no depreciation.
Not only is there an equilibrium i'll the case
supposed between the eff1ux and the refux, but
the renux is required to come back at early, fix
ed and certain periods. A currency thus issued
may vary in volume with the requirements OF
business without suffering depreciation even
from an excessive increase i'll volume. A cur
rency issued in strict obedience to this law OF
equilibrium would be infinitely more stable in
value than currency put out and taken III by
the Government upon .interconyertlbe bonds
So much for the currency principle OF ISSUING a
circulation.
IF, ON TIE OTHER HAND,
the Government, along side of the currency is
sled rs lust described should come into the
vicinity of the bank which issued it, and with
its own paper notes should buy up at double
prices property in that community to the
amount of q hundred thousand dollars, there
would be put in circulation notes OF both Kinds
to the amount OF two hundred thousand dolla
while there would be u counter demand, Cor
withdrawal from circulation, for only one hun
bred Thousand dollars OF notes to meet the ne
gotiable paper maturing to the bank. In such
a case greater or less depreciation Of this pa
per CURRENCY, made up of two kinds of notes,
is sooner or later inevitable Here, side by
sidc are two methods of issuing paper and two
sorts Of currency. One hundred thousand is
issued on the currency principle of the demand
for the re turn of the notes being equal to the
demand Tor the issuing of it, and quick, fixed
and certain; whereas, in respect to the other
hundred thousand dollars of notes issued on
the initiation principle, there is no certain, fixed
and early demand for the return of the paper
to the Issuing source.
All the vast volume of currency that has been
put OUT by the Government has been issued on
this imitation principle. Indeed,
UNLESS THE GOVERNMENT BECOMES A
BANKER,
it cannot issue paper in any other way than that
of imitation. 1t cannot provide, in issuing it,
fixed, certain and early demand for its return
to the issuing source. England has
always avoided this great blunder in finance
So has France since the miserable assignots
went to grief. So have all the great Govern
ments of Europe. They issue temporary ex-
chequer bills only in time of war, or to meet
some temporary emergency of sufficient gravity
to call for the expedient; but the measure is
early abandoned in every instance. For the
very reason that Government paper money
must OF necessity be issued in the initiation
method, the natural and almost inevitable con-
dition of that paper money must be one Of
greater or less depreciation. There is no sound
method OF issuing paper circulation except
in such a way that there shall be an early, GER
tail and fixed demand for its return to the is
suing source; and that can never be applied to
Il GOVERNMENT paper currency unless the Gov
ernment itself becomes a banker, which, in the
spirit of Old Hickory and Tom Benton, 1 cry,
God forbid
But a worse measure is proposed. 1t is that
the Government shall issue its notes to the full
amount Of all the currency needed in the ceun-
try; and shall, by its .1iat, declare, without
it inter-convertible with gold, that its
paper dollar. although fiuctuating in value ev-
s.ry day, shall be the measure Of value in the
iand-shall be the dollar of business and COM
tnerce. l can't imagine a proposition SO ira
-ional or fraught with SO much mischief, public
and private.
In the first place, the Government is pledged
not to issue greater amount of greenbacks
;han four hundred millions of dollars, and the
calls for q reputation OF the ma
sional faith
In the next place,
THE aREENBACK DOLLAR is NOT WORTH
DOLLAR;
can't be worth dollar if put out Oh imitation
orinci ples will inevitably tuctuate in value
% the state of the market every day in the
year; and therefore the proposition s, that the
Government shall both legislate a paipable
talsehood and legalize a stupendous fraud.
In the third place, the consequences would
be little short of revolutionary. The announce
nent that the Government was about to put
ollt four or five OF six or eight hundred millions
IF new currency would he an invitation for the
presentation to Congress Of every imaginable
scheme of internal improvements as conduits
Tor the transmission of this money to an army
Of iobbers and contractors. The present. doc
trne on the subject OF internal improvement
is that the nation should not engage in or as
sist them, except in cases of great works not
merely national, but continental i'll value, inn
portanoe and necessity; and that, as to such
works, the nation should have no direct part in
their construction or management, but may
IL VnfIsE