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

It must be borne in mind that this Stat
cy of the country-the Secretary Of the
Treasury is to be forbidden to hoard conn.,
the national banks, all to have their charters
revoked-the debtors to the 2, 400 banks are
to be compelled to settle at once, as the
banks would all have to go into liquidation !;
gold and silver driven out of circulation,
and the Jack Cades toltake charge of the
financial system Of the country, in order that
everybody might have his pockets full for
the asking. b r5s55.
y This is the Butler Kearney- Democratic
iGreenbaek-fiat money-policy. Let the peo-
pie examine it, and see how they like it.
3 AS an illustration OF how this policy
would operate and the effect it would have,
we take from the New York. Herald a des-
cription Of the condition of the New Eng
land Colonies, under the issues of s'fat
money - "a
/ /. In the, first years of the eighteenth cen
fury great clamor arose in New England
for the issue of more paper currency ito
meet the wants of trade" Bills of credit
to large amount were already in circula-
ton but business was depressed, and mer-
chants complained, as they always do. when
times are hare, that money was scarce Mas
sachusetts issued half million paper dollars
(e1O0, Q00) in l716, the immediate effect OF
which was marked depreciation OF the cur
rency. Four years later there was a cry
for new issue, $50 that workmen might be
employed and currency enlarged.''' 'sRuin
we quote, sunless more bills of credit are
emitted.'' Another half million was put
out in 1721, and in the course of the next
few years there were several issues OF small
er amounts, always with the same result. the
purchasing power Of the currency was i'm
paired, and the disorders Of commerce were
not allevated in the least, After the second
half million issue, 1000 in paper, was
worth only $3.50 in coin. And yet still the
demand went up for ssmore paper currency
to meet the wants of trade" When one
kind Of bills became heavily deprecated,
they were replaced by another, which soon
went through the same process, so that they
came after awhile, to have bewildering
variety Of currences- ssold tenor, = middle
tenor.'' ssnew tenor,'' ssnew tenor first, !"
;.snew tenor secondhand nevertheless,
money continued to be scarce, and trade to
be depressed. At last, when business had
reached its lowest ebb, and poverty-stricken
merchants and mechanics had begun to leave
the colony, Massachusetts receiving large
amount of coin as her share in the capture
of Louisburg, wisely resolved to devote it
to the redemption Of the bills. There
were loud outcries against the ubiquitous
resuw Aion bill; there were even some RIO
tous demonstrations; but the expected
shock did not occur. "The only shock, ;"
says Professor Sumner, s'was to Rhode Is
lard and New Hampshire, who found their
trade transferred to the silver colony and
their paper suddenly and heavily deprecated
The commerce OF Massachusetts, revived
steadily and rapidly. and we hear no more
OF scarcity Of money until the next vio-
lation OF the laws OF circulation.n II it
were only possible for US to teach the infla-
tionists Of our day by the. example of their
great grandfathers But no; history, &C.
cording to these gentlemen, is the subsidized
and mercenary minion OF bond-sharks and
vampires. 1t must be put down.