The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-08-01
Instructive Facts.

ment, and issued in supplement- form by the
Nea0 Republic, showing the amount of State,
National Bank, and United States notes,
&c., outstanding at the close of each fiscal
year from 1860 to 1878 inclusive. From it
we learn that only at two periods, 1865 and
1874, did the purchasing power of the cur
rency exceed its present power. and in 1865
only for brief period during an extraor-
binary disbursement to pay off the army. and
then only in the comparatively small sum of
$500, 1858, Is, and in 1874, the year follow
ing the great panic, which has been erro-
neously charged to contraction. Noonc can
examine the figures without being Impressed
with the unaccountable ignorance or stupid
ity, of those who are denouncing the policy
of the Republican party in its management
of the finances of the country. The
amount ofpaper circulation row is $685.
597, 1927. This, with the resumption of
specie payment, by which 5000 100000 Of
government coin would be added to the
circulating medium, and not estimating for
the subsidiary silver coin in circulation, would
give currency of more than nine hundred
millions dollars, larger by 0,00O,0 900 than
at any period in the history Of the country.
In the year 1870, which was prosperous,
the nominal value of the currency was $780,
375, 890.4S, the coin value Of which was
$599, 52l, 1895. The circulation gradually
increased to $3.50, O62, 36S.94, face value, and
coin value of $64S, 053, SSG.75 in 1S73-the
year Of the panic-and to s7Sl, 400. 926.l7 in
1874, showing that the panic occurred on AN
increased circulation of $50, 0OO,0 900, and con
tinued under an increase of more than $780,,
100000. Is it not apparent that the panic
was not caused by contraction? Is it not
equally apparent that its effects would rot
be effaced by unhealthy imitation? Is it not
better to resume coin payment, and thus Sc
cure healthy initiation of 100000. 900 in
coin? This would carry the purchasing
power of the currency above what it has ever
900, or within less than 500, 900, 900 face
value of the highest circulation attained dur
ing the war, and greater by nearly $780,
100000 in real value than at any other
period.
The steady and almost uniform deprecia-
ton of the currency, as the volume was in
creased, affords incontestble proof that, be-
yond the real demands of business, pa
per circulation cannot be maintained with
advantage to the country, and that its in
crease be yond real business demands does
not add to its purchasing power or real
value.
1t cannot be doubted that the government
circulating notes or greenbacks affords a
satisfactory currency and it is equally Ger
tain that the nearer the value of such notes
approaches coin standard, the more salts
factory it is to the people. 1t should be the
equivalent of coin and interchangeable with
coin at the will of the holder, and receivable
for all public and private dues. It's volume
may, with safety, on this basis be increased
to the legitimate demands of the business
interest of the country; beyond that it can
not be made to promote the general pros
perity. All classes Of trade are directly in
terested in having business guaged by safe
standard OF value, the laborer as well as the
merchant, the poor and the rich, so they
may know when they have dollar that 1t
is dollar, and not fuctuating currency
liable to contract or expand as circumstan-
ces may influence. and always initiating
prices beyond their real value, measured by
a recognized standard.
There has been since 1868 only very
trifling contraction in the currency, taken at
its face value. In that year the whole cur
rency circulation wss 1920, ALP, 6O2.75. 1t is
now at face value $6Ss, sci, 275.27, showing a
diminution in nominal value of only $751;
S15, 327.4 AS. The real value of the currency
in 1868, was $500, OC9 ,234.52. The present
real value or power of the currency is 1884,
465, SOL 80; thus exceeding the purchasing
power in 1868 by the sum OF Sl79, 45G, 45l :
10; showing that, in the last ten years, the
appreciation has compensated for the con-
traction and $l47 Gal 1862 more-its bust
ness power being greater in this sum than
it was in 1868.
These figures, taken from the table furn-
ished by the Treasury Department, and pub
lisbed in the ''New Republic" throw much
light upon the financial condition of the
country, as we'll as the cause of the rcvul-
sion in business and contraction in prices,
beginning in 1873, and influencing up to
this date. We may safely assume now that
the basis exists for substantial revival in
all departments ofindustry, and that with
the currency of the country of uniform
value, and corresponding with the recog-
nized standard of the world, there will be a
gradual and healthy response to the endeav
ors and energies Of the people, bringing
about general prosperity and confidence.
1t is not more money that we want to con-
summate this but less wild theorizing by
those who either do not know what they are
talking about, or knowing, are wlfully seek
ing to deceive the people.