The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-10-17
NO.28

1NOs ~
Now. of course, in the city of Boston, where
everything is done according to the square
laughter, where sin and guilt are unknwon
[cheers and laughterl, of course the gentle
man who tries $4,000 worth of Chicago
City seven per cents will 90 right to the AS
SCISSORS and tell them he has got them. Jap
plause.] You all do that mere. Naughter.1
You would not think of buying any such
securities without notifying the Assessors
that you had them in your possession, and
yet, as honest as we are in Maine, we 10 not
always do that. [Applause.] There is a great
deal of such property held here and else
where, and it is very hard to get hold of 1t.
1t is generally kept in tin trunk it is kept
in place where iG can be put in your wife's
bureau drawer. 1t is supposed to be the
property OF your brother in Colorado
[cheers], or your son left it with you when
he went to California. A vast amount Of
such property escapes taxation. am sure
the gentleman who buys ten thousand dol
lars worth of Chicago city bonds would not
tell the assessors of the city OF Boston that
| he had them in his possession. On the con-
trary, he would get seven hundred year
for his ten thousand dollars, while the man
who purchased the United States four per
cents would get but four hundred dollars.
He put his money where it draws seven per
cent, and takes his chances as to whether
| the Assessors will find him out. [Cheers.l
The great inducement to purchase Govern
ment bonds at a low rate is because the tax
alton has been taken off of them in advance
because they are not subject to taxation.
Suppose you put tax on Government
bonds. Suppose the Government should is
sue proclamation that its bonds, were tax.
able, do you think there would be long pro-
cession with their tin trunks in their arms,
going up to the Assessors office [Cheers.
This whole idea of taxing the Government
bonds is absurd.
Some Currency Figures.
Under its present management the Treas
ury Department has prepared more full,
prompt and detailed statements of its oper-
ations than were ever given to the public at
any previous time. Therein Secretary Sher-
man has rendered many public services, but
another, of no small Importance, he has pre-
formed by the very timely publication of
detailed account of the currency outstanding
each year since 1859. In this statement, all
government notes circulated as currency are
included, and the notes Of State banks.
Moreover, the actual purchasing power in
gold, of all paper currency outstanding each
year, has been calculated, and it is safe to
say that the result will be most surpring to
the advocates of imitation. For it is plainly
demonstrated that the process toward re-
sumption has been one, not of contraction,
but of actual
EXPANSION IN THE PURCHASING POWER
OF THE CURRENCY
outstanding. A moderate decrease in the
nominal amount OF notes circulated has re-
suited in so large an appreciation that there
has been an actual increase in the gold val
ne and purchasing power of the entire paper
circulation. The smaller amount has been
rendered more efficient than tine larger
amount was two years ago.
The scope Of this statement is such that
it omits very properly most important
item. Fractiona! currency is included as
part of the paper outstanding but the reduc.
ton from $40, 1881, 295.67 in 1874 to only &c.
5S7, 76s.77 in 1878, though it appears prop
ery as reduction of over 500 1000, 900 in pa
per currency, has been more than balanced
by the Introduction OF small silver. In q
like manner, the larger paper currency has
been Reinforced by the circulation of trade
dollars in large amount, and Standard Silver
dollars and Mexican trade dollars in smaller
quantities. Moreover
AN EXACT STATEMENT
of all the currency in use would take into
consideration the increased availability and
use of gold as reserve in bank vaults and
elsewhere, and its use as currency on the
Pacific coast But the object OF the Treas
ury statement was to show the variation in
nominal amount and in actual value of the
paper currency only, and in that regard it
is complete. In the following, the Treasury
statement is abbreviated; the amount of
banknotes: State and National, is shown
for each year, the entire amount prior to
1864, and avery large amount prior to 1865
! being the circulation Of State banks; the
amount of legal-tender notes outstanding
each on the twentyith Of June is shwon
and the third column gives the amount
of the paper currency OF all kinds,
!; including besides bank notes and le-
gal tender notes, the one and two year notes
of 1868, the compound interest notes of 1868
and 1864, the old demand notes and the
fractional currency. The forth column
!. shows the actual value in gold of the entire
paper currency outstanding, at the price OF
gold July l, each year: