The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-10-24
Historical Examples.
From the Cincinnati Commercial

From the Cincinnati Commercially
The Government issued in 1912 Treasury
notes having one year to run, and bearing
five and two-thirds per cent. interest, to the
amount of 100000; and added to these
in 1913, Sc, 100000, and in 1914, 5000, 00O
These were received in payment for duties
on imports and other Government taxes.
but were not legal tender. By October, 1914,
they were of so little value that only neces-
cessitous creditors or contractors in distress,
or Government officials, were willing to re-
ceive them. Compared with even bank notes,
which were not redeemable in coin, they
were at heavy discount. In August, 1918,
there were twenty thousand persons out of
employment in Philadelphia, with a like
condition of affairs in New York and Balti-
more, and the papers were filed with adver-
tisements of Sheriff's sales. The Senate of
Pennsylvania set about to find the cause of
this distress, and traced it back to The ex-
panson of 1914. They found that following
such expansion there had been an inclina-
tion On the part of large number of the
people to live by speculation and not by la
Dor, and that a spirit akin to gambling had
prevailed, both of which seem to be the in
evitable results of imitation. Land in that
State was worth on the average in 1909, $3S
an acre; in 1915, $3.50; in 1919, only 49,
The circulation of the country in 1872 was
about $45, 100000 in 1917, 800, ZOO, 600;
in 1919, $45,000,000. The distress of the
year 1919 was the occasion of numerous riots,
incendiary fires, frauds and robberies. The
moral character Of many American citizens
greatly changed by the presence of the dis
tress. The distress OF the past few years is
not to be compared with it. The stagnation
of business continued throughout the year
1920. Prices were at the lowest point; but
the payment of debts went on, and the
banks settled down to a quiet regularity.
Those who had no debts to pay had plenty |
of money. AS confidence revived invest
ments we're gradually takenup. The history |
of our currency, from the beginning until |
now, is. that except we have coin basis, |
distress is sure to come upon us. The sue
cess of the Inflationists and Greenbackers
will result in just such disasters as befell the
country in 1919.
In March, 177s, 81 in coin was worth $1.75
liz our National paper; in March, 1879, $40;
in FEBRUARY, 1850, $40. At the latter date
$200,000,000, By the end of the year it was
generally believed that these bills would
never be redeemed, and they were worth one
hundred for one dollar in coin, or cent
piece. By May, 1881, they had deprecated
to from 200 to 500 for one, about which time
they ceased to circulate as money. A vote
to postpone resumption is a vote to favor
possible return of such disaster.
Between the years 1744 and 1859 the cur
rency of Rhode Island had so deprecated
that while in the former year it required 81
30 to obtain one IN coin, in the latter it re-
quired 1923. The Democratic Greenback par
" would make our National currency as
valueless. |
Webster says of paper money: ''We have
uffered more from this cause than from any
,ther cause or calamity. 1t has killed more
men, pervaded and corrupted the choicest in
erests of our country more, and done more
INJUSTICE than even the arms and artificers of
'ur enemy"