The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-08-08
of currency gives us full information on

and bullion and $50, 1870, $50 in silver coin
and bullion.
8 On the same page he states the annual
product OF Jour mines to be 49,, 200, 900
b 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 millions, and there
can be but little question that the yield of
\ the silver mines is in excess of twelve mil
lions of dollars,
I With these facts before US it must be OBJ
yous that within twelve months the volume
OF currency must be largely increased. The
, increase will be effected as follows
Present amount of currency
in circulation. .................. $500, 600, 900
Add to this amount gold and
silver, coin and bullion...... "a, O00, 900
Add amount OF silver ordered
to be coined by U. S.......... 100000
Add one years product of
gold mines, ...................... 10000, 900
$1,050, GOO, 900
which is an increase of over three hundred
and sixty millions, or over fifty per cent.
over the present volume OF circulation.
1t must be remembered too, that this is not
an ''infiation,' caused by the issue of
sspromises to pay,' as was the case in 1917
and 1886, but an addition of solid, metallic
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 money may
be expected. The banks are now required
by law, to keep in their vaults, or at their
redemption agencies, Il per centase of their
deposits in treasury notes as a reserve fund.
This reserve is not fixed amount but va
ries according to the business OF the banks.
The comptroller in his report page l6T
estimatesit at $751;, 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 eigh
| ty-seven millions, which will at once
swell the volume of money in circulation to
| that extent.
But, it may be said, by some, Chat 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 demand
of foreign commerce. To all such, [ re-
spectfully say that the amount Of our
bonds held abroad is much less than Is gen
orally supposed, and is steadily diminish
ing, and as for the demands of commerce,
they are now in the opposite direction.
An official statement published within
the last week, shows that for ten months,
ending the 30th of April, the total exports
from the United States amounted to $593,-
1877, 1892; while the aggregate Of imports,
was 1865, 56l, ISL thus showing balance in
our favor of over two hundred and twenty
seven millions of dollars.
During the same period, (Which embraces
one semi annual payment of interest on
United States bonds held in foreign coun
tries) the export of specie and bullion
amounted to $29. OF, 914. while the imports
of the same were $25, 704. 400, thus showing
an excess of exports of the precious metals
of only 81, 1886
We NAV, therefore, safely dismiss all APP
prehensio.s 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-seven 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 con-
fident belief which l have expressed, that
we are on the eve of a renewal OF activity
in business and of an era of prosperity.
An increase of the volume of sound 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 10 labor adequate compensation
add active employment.
THE PROPOSITION TO TURN STATE BANKS
LOOSE.
[ know OF nothing likely tv interfere
with our onward progress. unless Congress
should give countenance to the wild and
mischievous proposition which has been
suggested of repeating the law imposing
tax of ten per cent. on the issues OF State
Banks. If that tax were repealed We shoul
soon zee the rivival of State Banks with
their extravagant issues of irredeemable
'spromises to pay" which would initiate the
currency-banish gold and silver from circu-
lation 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 powsr ''to
coin money, regulate the value thereof, and
OF foreign coin, and fix the standard OF
| weights and Measures If there be one
subject Which does belong, and of right
ought to belong to the domain OF federal
legislation. it is the regulation OF the value
of the currency. No one questions the eX-
elusive power OF Congress to Xix the standard
of weights and measures. Ii then, it be
proper chat the Federal Legislature should
fix the standard OF the measures of quanti-
tity, what reason can be assigned why it
should not ave power to 5ic the standard of
| U0lue? 1t will be a dark day for our conn
try if Congress should abdIcate this salutary
power which insures to us d currency of
uniform value throughout the United States.
THE EFFECT OF LOW PRICES.
Before closing this letter. which Is al
ready longer than Intended it should be,
cannot fOrbear from correcting a mistaken
idea, which prevails with many. | often
hear complaints Of the low price of agricul-
tural productions. People look back with
regret to the day when they received 81
for flour, or STA for good horse and la
lament that now they can get only $4.S5
barrel of flour and 500 for similar horse.
TO all such I would respectfully say that
the difference is only nominal. When they
were receiving the high prices above named
| they were i'll fact getting no more actual
value for their flour and hor.e than they are
| now getting. The reason is this-when they
were receiving the high prices, gold WAS at
premium OF A per cent A dollar in cur
rency was then worth but 60 32-l00 in gold
and the 81 which they then got for their
flour. was worth exactly Si.S5ia gold, which
is the present market price. aud so with the
horse. The $l44 which he would have sold
for in 1866, when gold was All a premium
of A per ceut., was worth but 500 in gold,
while the 500 in currency. which he would
now sell for, is worth Sl00 in gold.
GOOD POLICY FOR CREDITORS To WAIT.
In conclusion, beg leave. In view of the
bright prospects ahead of us, to appeal to
creditors to extend all possible Indulgence
| to their debtors. Enlightened self-interest,
as we'll as humanity dictates this policy
everything is now at the lowest point of de-
preston. TO enforce payment under, ex-
| isCing circumstances, will involve the sacri-
| flee of property anc very probably the loss
of the debt, which by little Indulgence,
might be rendered secure. Let us mutually
bear and ferbear. By generous indulgence
for another year many debtors will be able
| to retrieve their circumstances, who by
contrary policy, would be stripped of their
property and left homeless and desolate.
Very respectfully,
Your friend and fellsw-citizen,
ALEX. II, II. STUART.
One OF the newest styles of hosiery is of
black silk, with the feet embroidered in JAG
queminot red diamonds, surrounded by min
allure diamonds of white.
Bags of kangaroo skin, large enough to