Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1878-06-07

| On the same page he states the annual
| product OF our mines to be $S2, DOC, 0CO, but
more recent information induces me
| to believe that this estimate is too low
reports of late date show that the gold
mines yield annually about seventy mil
lions, and th"re Can be but little question
| that the yield of the silver mines is in
excess of twelve millions Of dollars.
| With these facts before us it must be
| obvious that within twelve months the
volume OF currency must be largely ID
creased. The Increase will be effected as
| follows:
Present amount of currency
In circulation. ..-.... 9O,OOO 900
Add to this amount gold and
silver, coin and bullion. ... 242.000,00
Add amount of silver ordered
to be coined by U. S......... 100000
Add enc years product of
gold mines. ..... ..... ........ 7O,o00,OOO
S1,O5O,0O0, COO
which is an increase of over three hundred
and sixty millions, OF over fifty per cent
over the present volume of circulation.
| 1t must be remembered too, that this is
| not an Initiation" caused by the issue Of
! promises to pay,' as was tue case in 1917
| and 1886, but an addition OF soil d. metal
lie money which has intrinsic value, and
| needs no redemption.
ANOTHER SOURCE OF INCREASE.
But this is not the only source from
which an expansion Of the volume OF mo-
ney may be expected. TIE banks are now
required by law. to keep in their vaults,
OF at their redemption agencies, per cent
age OF their deposits III treasury notes as a
| reserve fund This reserve is not IL fixed
amount but varies according to the bust
| ness of the banks. The comptroller in his
report (page 1917 estimates it az $S7 100000.
A bill is now pending before Congress
which it is conceded will pass: which au-
/ thorizes the banks to hold this reserve
| fund in four per cent bonds, instead of
treasury notes. The effect of this law
will be to let loose from the vaults of the
banks eighty seven millions, which will at
once swell the volume Of money in circu-
lation to that extent.
But, 1t may be said, by some, that the
! specie will be drawn from the United
| States to pay the interest ON bonds of the
| United States held abroad, and to meet
the demands of Foreign commerce. To
ali such, [ respectfully say that the
amount of our bonds held abroad, is much
less than is generally supposed, and is
steadily diminishing, and as for the de-
mandS OF commerce, they are now in the
opposite dre ction.
An official statement published within
| the last week, shows that tor ten months,
ending the Both CT April, the total exports
from the United States amounted to $685.
,292 while the aggregate CT imports,
was 1856, 561 ,951 ; thus show ing a balance
| in our favor OF over TWO hundred and
twenty-seven millions OF dollars.
During the same period, (Which embra-
| ceS one semi-annual payment Of interest
| on United State boDuS held in foreign
countries( the export of pecie and bullion
amounted to $50 ,077 9l4, while the imports
of the same were $25. 794 400, thus showing
an excess of exports OF the precious metals
| of only 81 L So 614.
| We may therefore, safely dismiss all APP
| PREDECESSORS OF danger from foreign de-
mand for our specie. On the contrary the
large balance OF trade IN our favor OF two
hundred and twenty-sever millions above
referred to, will have to be paid, either in
gold and silver, or by the return of our
| bonds held by foreigners.
| L think these figures fully Justify the
! confident belief which l have expressed,
that we are on the eve of Il renewal of ac-
| tivty in business and of an era OF pros-
perity
All increase Of the volume ofsound cur
| rency will tend to enhance prices and lower
the rate OF interest. 1t will place capital
within the reach of men of moderate
means, and ensure to labor adequate COM
| lensatlon and active employment.
| LA I4OIO0Il lON ~ IURN STATE BANKS
| LOt SE.'
know of nothing likely to interfere
| with our onward progress, unlt SIS Congress
should give countenance to the wild ard
mlschievous proposition which has been
suggested, IF repeating the law imposing a
| tax OF ten per cent. on the issues of State
Banks. Ii that tax WIRE repealed we
should soon see The revival of State Banks
with their extravaganza issues of irredeem-
| To
tate the currency-banish gold and silver
| from circulation and bring back upon us
all the evils incident to irredeemable paper
money.
The Constitution of the United States
has wisely delegated to Congress the power
ITO coin money, regulate the value there
OF, and OF foreign coin, and fix the stan
GARD OF weights and measures" Ii there
be any one subject which does belong, and
OF right ought to belong to the domain of, i
federal legislation. it is the regulation of
the value OF the currency. No one cues
lions the exclusive power of Congress to
Tx the standard of weights and measures.
II, then, 1t be proper that the Federal
Legislature should fix the standard OF the
measures OF quantity, what reason can be as
signed why it should not have power to
tc the standard of ualue? 1t will be dark
day for our country if Congress should alb
olcate thls salutary power, which ensures
to US currency OF uniform value throuph.
out the United States.
THE EFFECT OF Low PRICES.
Before closing this letter, Which is al
ready longer than intended it should he
cannot forbear from correcting a mis-
taken idea, Which prevails with many.-I
often hear complaints OF the low price of
agricultural productions. People look back
WIN regret to the day when they received
S7 Tor ha rrpi Of ~
horse. aud lament that now they can pet
only S4.S5 for flour and $l00 for d similar
horse. 10 all such l would respectfully
say that the difference is only nominal.
" hen they were receiving the high prices
ABOVE named, they were in fact getting
40 more actual value for their flour and
horse than they are now getting. TIE
reason is this-when they were receivino
the high prices, gold was at premium Of
= per cent. A dollar in currency was
Snen worth but So 32-10O in gold. and the
seven dollars Which they got for their
llour, was worth exactly $4.S5 in GOLD. =.
Wnlcn IS the present market price. and SO
with the horse The s144 which he would
lave sofa LOT IN 1866, when gold was at a
=, Ssnl ia vi - per cent, was worth but 500
IN gold, while the 500 in currency. which
ne would now sell for, is worth $1O0 in gold.
GOOD PoLICY FOR CREDITORS TO WAIT
tia h oH;notuoiou' peg ieaVe, in view of
" tlie olignt prospects ahead of us, to appeal .
TO creditors to extend all possible in9ni-
gence to theird btors. Enlis htenea self in-
terest, as well as humanity dictates the
is now at the lowest
point OF depression. To enforce payment
I'M existing circumstances, viii inyoye
81 the s s OF property q very probable
dl 1Io LOSS OF me debt, which by little in
uulgence, might be rendered secure. Lat
US mutually bear and fnrhear Ru Lev