Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1878-10-08
Mr.. schurz,s Speech on Finance.

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ofthe best informed political economists
in the United States. He began by show
ing the fallacies upon which the infla,
ton mania rests. Contraction, he prov
ed, could not have caused the collapse of
1873, since contraction ceased in 1868,
and between that and the panic we had
five years of what was thought brilliant
prosperity, accompanied with an actual
imitation of $50, 600, 900. The real causes
of the collapse were the absorption
were the absorption of capital in costly
wars, in great public and private
undertakings not Immediately remu-
nerative, in speculation and gam
bling of all sorts, attended, as this lock-
ing up Of capital was, by a revolutiona-
ry diversion of industry by new tariffs,
and new uses and applications of ma.
chinery. FINALLY, everybody believ-
ing himself richer than he was. and
therefore spending more than he could
afford; hence widespread extravaganza
and improvident habits" "And if we
inquire what the currency had to do
with it," added Mr.. Schurz, 1--WE shall
find that in this country our irredeema-
BILE paper money, by its depreciation,
running up prices to fictitious point,
stimulated the sp iritof recklessness and
gambling in almost all branches Of en-
terprise and business, melted extrava-
gance. and thus strengthened all the
bad and demo1alizing influences which
are usually active at such a period"
"After awhile" said Mr.. Schurz, "the
illusion that debt is wealth, and infla-
ton prosperity, and speculation INDUS
try, is dispelled people comprehend the
fact that there is nothing real in their
financial condition. This light-the
light Of sober truth-usually breaks all
of sudden upon the people. The illus
sion all at once vanishes, the bubble
bursts, and we are set down heavily up
on the hard rock of fact. That thing
happened to US in 1874" After SUCH q
collapse there is nothing to do but get
our senses together and to 60 work like
men to repair our shattered fortune.
We must first recognize our error and
our delusion; must first comprehend
that what we produce and what we
have, and not what we dream of, COM
prises our wealth; that no "windy
schemes to make ourselves rich by print
ing the word dollar upon piece of pa.
per" will profit US; and that the only
honest way to get rid of debts is to pay
them.
Mr.. SEIZURE sees plentiful signs Of re-
viving business, of quickening energy
and vitality in industry, and all that is
now needed, in his opinion, to furnish a
sound foundation upon which business
may build itself up anew is first, good
national and individual credit, based
upon national and individual honesty
second, a sound currency, of real and
stable value; third, safe and reliable
banking system. Mr.. Schurz Celebrates
the need for restoration of credit at
great length. He considers it the first
and most necessary thing to initiate a
business revival, and this view of the
case the attacks of the greenback party
upon the government securities and
their holders he regards as being most
disastrous to the business hopes Of the
country. disturb that credit by any
act or attempt weakening the confidence
of the world ct home and abroad in our
ability to pay or in our honest purpose,
and the funding process will cease, and
with it the beneficent results flowing
from it. Thus you see in this, as in
other things, it is not only most homo
rable, but it pays best to be honest. The
most expensive thing nation can do is
to attempt to get rid of its obligations
without honestly disoharging them,
The next expensive thing is to bubble
about them"
The immediate embarrassments of
the State of Virginia furnish the best
possible commentary upon this text-it
is rarely that the moral and the appli-
cation run SO closely together. The fl
nancial condition of this fine old Com
monwealth, which in years past had
unlimited credit, is deplorable. What
with 'scalers," "forcible readiusters'
and regulators. Virginia's treasury is
now stated not only to be completely
empty, but her credit entirely gone.
The public schools are just open, but
there is no money even to pay the I'M
fortunate teachers the arrearages of the
last school term. To meet this emer-
gency, as is stated in kilograms from
Richmond, Gov. Holiday applied last
week for a loan from the Richmond
banks. He only wanted 100000. and
for no other purpose than to prevent
the schools from being closed. The
bank presidents gave the Governor and
the treasurer conference, at which it
is said that the Governor made most
earnest appeal for means to meet the
extraordinary exigency. 1t is reported
however, that the bank presidents re-
turned only an evasive answer. The
security was not adequate. These ban
kers doubtless have a vivid remem-
brance of the repudiating Tenderness of
the last Legislature and are naturally
afraid to place faith in the honesty of
the next one as long as "forcible read
justment" is advocated by a portion at
least of the Virginia newspapers and po-
liticians. In other words. Virginia's
credit has been SO tempered with by the
men who now aspire to control her af-
fairs that she is not able to procure even
small temporary loan to cover her
most pressing necessities. The rest of
Mr.. Schurz's address is in the same Wig
orous style with that which we have
quoted above. He reviews thesituation
upon all sides, but while he admits that
it is grave, he does not despair. The
paper money demand he thinks may be
as brief in endurance as it has been sud
den in outbreak He has every faith m