The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-10-31
MATTER
Shall We Resume?

How the editor of the Richmond Dispatch.
or any other sensible man, can favor hard.
money and at the same time practically adj
vocate the repeal of the resumption act, we
cannot understand. The two positions di-
rectly antagonize, and there is no common
ground between them. The Dispatch tells
US that it opposes government interior
ence with the laws of trade-or in other
words the course Of nature-and so opposes
the passage of the resumption law and all
measures looking to forced contraction
OF the currency of the country, and now
fears that the resumption act will prove to
be failure" 1t seems to forget that the
hardships incident to return to specie ba-
sis have been endured that resumption has
already been accomplished, and that really
nothing but the prohibition Of the law pre-
vents the treasurer from paying out now
dollar for dollar, upon presentation. If it
doubts the ability of the Government to
meet its obligations at the appointed time,
it can have little faith in any financial insti-
tuition on the face of the earth. The steady
accumulation of coin in the Treasury will.
if it progresses at the same rate, amount by
the first of January to more than thirds
of the whole volume of legal tenders now
outstanding. In other words, at least six
ty-slx per cent of the largest amount that
can possibly be required will be ready for
tue purposes Of redemption when needed.
The percentage of resources to liabili
ties of the Bank of England is forty-five !;
Of the Bank Of France, sixty-fye of the
Bank of Germany, fifty-eight; of the
Bank of Belgium, twenty-five percent ):
and yet these are regarded as the safest
financial institutions in the world-as solid
parison at once shows that the reserve on
hand the LIST of January will constitute a
larger percentage OF demand liabilities
than is shown to have been successfully relied
upon by European National Banks, and
certainly the ultimate resources of those in
situations are not more abundant and GER
tain than those upon which the treasurer is
authorized to draw should it be necessary.
According to the Dispatch's idea there
should have been no law definitely fixing
the date of resumption Government
should not interfere with the laws of trade
Or In other words, the course of nature y
Is it to be supposed that the greenback
would have appreciated to the value of gold
within the past four years, but for the pledge
that it should be redeemed in coin at GER
tain time? Ii negotiable note is placed
tn bank, is the discount not regulated by the
length of time to elapse before its maturi-
ty, and is the value not appreciated as that
period draws near? Suppose, however, in
stead of STIMULATING a definite time, the
drawer should make it payable "when- ecn-
venient,r would. the value be greater at
the end of a decade than when it was Civ
en-? These legal tenders never were and
never purportedTto be money. They are
simply the Government promissory notes,
and when the pledge was. given that upon a
certain day they should be paid, the discount
on them grew less and less as the time APP
preached, until now they are so nearly at
par that It wouldn't pay the bankers to ham
die them.
If a man should give his note payable
'swhen convenient,' he would make little
effort to hasten that convenience, but when
he knows that his bond must be met on
certain day, he will exert all of his, energies
10 protect his credit. If necessary, he will
economize and save, lop off extravagancies
and dispense with luxuries, and when the
note natures will not only be able to meet
II, -but will have been taught a lesson in
economy and self-discipline, the value of
which is scarcely to be measured. Since The
date for the payment of these obligations OF
the government was fixed by law, the peo-
energy and determination that have re-
suited in accomplishments of which any
nation might be proud. They have cut
down expenses and increased receipts, have
placed the name of the United States at the
head of the credit instead of the debit page
OF the worlds ledger, have gotten down to
the solid foundation of metallic money, and
are just commencing to- rear a structure so
substantial that adverse winds will have lit
tie power to affect it. Never were the peo-
pienf the Union in a condition so solidly
prosperous as now; the whole world is pay
ing tribute to them they have been taught
the hard but wholesome lesson that honest |
labor, industry and economy can alone be
relied upon to secure wealth, that fortunes
OF day pass away with the setting sun,
and that real prosperity is NOT based upon |
fictitious values. To-day, the United States is |
in the forefront Of nations, and all that is |
needed is peace and quiet and ''let alone"
to enable its people to reap the reward of
their toll. At such a time they are asked to
surrender all that has been achieved, to
yield the golden fruit just as it is within
their grasp, and to plunge again into wild
speculation and extravaganza. The repeal of
the resumption act and obedience to so-called
''laws of trade" and 'scourses of nature''
means nothing less. Once open the flood
gates, and you will try in vain then to stay
the torrent. -
The Dispatch knows that want of confidence
and not of currency has brought about depres-
sion in business. There is plenty of capital
in the country now, but it is locked in vaults
aud will there remain until this perpetual
with the law ceases. The man of
business who may be called TO aid or enter
upon given enterprise, declines to do so,
because he cannot judge closely of final re-
suits. He knows not what will take place
before his enterprise is in operation, and in /,
The very nature of things his property {
would often be in such shape that sudden
realization thereon would be ruinous if not
If assurance could be given !
lpon which to base calculations, there would i
We no further cry for more money. Cap :
tai would seek investments everywhere :
ven at the lowest rates.
If experience teaches anything, if the his a
Dry of the world is not lie, there isa GER \
ain circle Of causes and results which is lust n
s inevitable as the rising and setting of the !.
IN. It's this: real permanent prosperi-
7 is based on q fair exchange of values t
old is the only actual standard of value; h
1ar takes from the ranks of producers.