The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-10-03
INV Speech

1874, to prepare speech on the financial
question, as it has served him purpose in
nearly every speech he has made or card he
has written since on that subject. lie over
looks, however, that four years have passed
since then, and that new thoughts, growing
out of experience, have taken hold of the
public, and controlled legislation. In his
'sreply," published to-day, he quotes from
that speech, producing his assertion that
the national banks were unequally distrib.
uted, ignoring the legislation that removed
all restrictions as to them and making the
banking law free, to be governed by the de-
mands of localities, and that now wherever
it is desired bank shall be established there
| is no legal inhibition. All that is necessary is
| to purchase the United States bonds and de-
post them with the United States Treasu-
rer, to protect the people against loss and
make the note-holder secure. The repeal
+ Of these restrictions, however, has not in
creased the banks either in the South or
West, whence the clamor against the re-
striction came, fer the reason there is not
enough of surplus wealth to form the basis
of banking under the law, or business does
not require them.
He reiterates his remarks about the injus-
tice of the banks getting interest on the
bonds, and then the per cent. on discount,
as though the government would not have
to pay the interest, let the bonds be held
by whoever they might, and the interest
charged by the owners of money, let the
borrowers come in what shape they might.
1t certainly is better to pay the interest on
the bonds to our own people than to compel
the government to put the bonds on foreign
markets, and thus draw. the amount of
interest from our own country. He seems to
ignore the fact, too, that the average rate of
interest is now 5 per cent. on the bonds and
not seven as his IA speech states, and that
the prime object of the national banking
system is to strengthen the credit of the
government by bringing to its support the
capitalists of the United States. This is
the central fact of the system that has ena-
bled the government to put out its bonds at
four per cent, instead of six or seven, as it
was at one ime-to reduce the interest
charge one-half-reduce the debt one-third,
and lessen the aggregate expenses of gov
eminent one-half. These important facts
are all overlooked by Judge Harris, and with
reckless disregard of the lesson they teach,
he would strike down the policy that has
consummated these benefits and this relief
for the people.
He further complains that he has been
misrepresented in his views as to the amount |
OF currency. He says there is not enough OF |
currency for the wants of trade, and that he |
favors an increase to limit not yet defined,
but to be certainly ascertained, and |
this when we have more actual currency |
now in the country than we ever had. He
certainly favors the retention of the present
greenback circulation !, 600, 0O0-the SUBJ
stitution OF greenback for national bank
currency, 1924, 000, 000-the payment of
$3.50, 000, 900 Of five-twenties In greenbacks,
as per his late speech,-giving an aggregate
of oYer..$1 ,10o, OOO,o 900 Of greenbacks, when
the solemn pledge of the government to
its creditors, provides that they shall never
exceed s40O, 100000.
He too, favors the repeal of the ten per
cent. tax on State banks of circulation,
which would invite an inflated currency of
the very worst kind, and in connection with
the 81, loo,OOO,000, would give us volume
Of paper that would enable enterprising
people in few years, to plaster their rooms
with it, and build balloons and kites for
heir boys, at little more expense than the
ordinary white paper.
my speech'' of 1874, nor ''my speech"
Of 1878, nor my "reply" of this date, will
pear scrutiny in the light of the familiar
current financial history Of the country, and
he less said about them will be the better,
the object is to impart reliable and accu-
ate information.