Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1878-07-12
A Van Buren, Democrat on Mr.. Stuart's Let
ter % Finance.
Editors Tindicator.

| Editors indicator.
When you published Mr.. Stuart's letter
on the financial history and prospects OF
the country, it appeared 20 me there were
important errors in it that should not be
allowed to pass unnoticed.
Seeing that it has been somewhat exten-
sively published, one must presume it is
thought worthy of high consideration.
Whether that consideration arises from a
belief in its correctness, or merely from
respect for its author; gentleman to
whom we owe a debt Of gratitude we can
never repay (his services on the reconstruc-
tion question: and for which would read
lily forgive all Of what I, as a Democrat,
might think, the faults and errors Of his
political life-yet seeing no reply to it, I
hope it will not be deemed arrogance in
me that l should set up my opinion against
so prominent jurist-an ex-member of
Congress and an ex- member of the cabinet
In our country it is the duty Of the citi-
zen to think for himself, as well as lie can,
and not take for gospel the opinions Of any
man, no matter how high his position or
extensive his requirements. While would
yield to none in admiration Of the ability
and patriotism of Clay, Of Clayton, OF Web.
ster and of Crittenden; don't like to see
the ability and patriotism Of my political
.. idols Jackson, Van Buren,, Benton, For
syth and Silas Wright, sneered at.
They we're the men who shaped the leg
| islation, who carried the country though a
long and troubled course of years. They
were not demagogues, they were not polit-
| ical fanatics. Truly it was an age OF
! giants; we look in vain for their peers to-
| day.
| No financial measure ever brought be-
fore Congress equalled in Importance the
Sub Treasury Act, passed in Mr.. Van
Buren's administration. When the politi-
Cal whirlwnd took place that elected Ear
rson, in 1910 his party could not wait for
the regular session, but called an extra
| The first thing done, was to repeal the
Sub Treasury Act, then they wrangled for
months over a Uuited States Bank until
compelled to give it up in despair, and Mr..
Clay resigned from the senate, disguised
with political life.
| Mr.. Polk was elected in IA, the Sub
Treasury was quietly restored and from
that day to this no voice has been raised
against it.
Mr.. Stuart says that the veto Of the Uni
ted States Bank by Gen. Jackson, the re-
moval of the deposits to the State Banks.
and the Increased issues of those banks by
reason of holding the government moneys.
at length opened the eyes OF congress-: that
congress in '36 seeing all this, created the
Sub-Treasury system, which wass the
Growing act of all the measures that pro-
duced the crash of May, 81.
| When Mr.. Stuart wrote his letter he had
the authorities at his elbow TO refer to-
have none but my memory and that moth
ing to boast of-but Ill risk it against his
statement.
In 1886 the democrats had no thought Of
removing the government moneys from the
State banks, or of Sub Treasury. Mr..
Van Buren, was elected in '36. took office
March 3. ~. A few weeks after, the ex-
tensive banking house of the Josephs in
New York went down, a few days more
the U. S. Bank suspended, Immediately all
the banks in the United States suspended.
In the winter of 81, 6 months after the
suspension, Mr.. Van Buren, in his message
proposed an entire separation of the gov
eminent from all b0iaks-that the govern
ment should recognize gold and silver only
as money, that this change should be grad
ual but complete in years.
A measure so extraordinary startled the
whole country, Wings and Democrats
| alike. 1t was most violently opposed by
the whole banking interest and all whom
they could influence, nine-tenths of the
| Democrats who were holders Of banking
stock went over to the enemy. That was
the real cause of Van Buren's defeat in
1910. the sole cause, all other causes were
| as nothing.
The Sub Treasury act was passed after
most bitter strug&)e, think in 80, and
think it required chat after IL months
from its passage One-fourth OF all sans due
the government should be paid in gold or
silver, after "a months one half, after 36
three-fourths, and alter 48 all in gold or
silver.
So that all things considered can't see
that the SUB treasury bill had more to do
with causing the crash Of May, 1887, than
| it had i'll causing the war of 1912. In my
opinion congressional legislation mad moth
ing to do with thai crash. It was the
natural and inevitable result of other
causes, over which congress had no con-
troll. 1t might be useful and interesting,
but there is neither time no space to con-
slider it now.
Mr.. Stuart in his letter puts the circula-
ton OF 1865 at 81 500 900 900 and goes on
W oAy CIIdt Ill UIl0 UIlIUC0Cu intervening
years 1T has been reduced to 100000 900
and that this is the cause of the present
hard times. Here, with all respect for
Mr. Stuart, L must say is gross error. The
circulation at the close of the war was not
even 500, 100000.
The $50, 100000 certificates of debt were
certificates given daily by quartermasters
and other agents of the government for
supplies furnished; they were of every i'm
aginable sum, from $500 up or down.
They were cashed at government offices,
generally within month Of their date. II
the holder of the certificate wanted his
money and couldn't wait he took it to a
broker or to any one who had money lying
idle and sold it for or 2per cent. discount
as they might agree. They ha6 no fixed,
positive value, (they were nothing more
than A. BIS note of hand to G. D. of
$59, 62 for horse, payable about month
after date.) Consequently they never at
any time entered into circulation aB
money.
l suppose during the war their issue
might have been 81 600 900, O00s They were
generally paid within month of their
date, some OF them given after the surren-
der, and no doubt the last dollar of them |
cashed wlthlh two months after the sur
render. The $217 900 compound in
terest legal treasury notes issued during |
the early part of the war never circulated |
put away for the interest, more precious |
than gold, as gold did not pay interest.
Consequently there wasn't dollar of that |
issue in circulation in 1865
The $S10,O00,000 Of 7.3O notes did not |
differ much from government bond of |
to-day, and never at any time appeared in
circulation, any more than U. S. bond |
does to-day. question if more than one
man in ten thousand ever saw one of them.
The real circulation at the close of the
war was 1886, 900 900, and no more.
These 81, 100, DOC, 900 of which Mr.. S.