The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1880-10-28
From the Boston Traveller.
The Perils of Ga Change. u

From the Boston Traveller.
The Perils of "a Change"
The November number of the North Amera-
can has notable article on the Political Situa-
uation from Financial Standpoint" 1t bears
the signatures of E. d. Morgan, J. J. Astor
Hamilton Fish, Robert Lenox Kennedy, j
Pierpoht Morgan, E. P. Fabri, Charles H
Russell, John A. Stewart, j. d. Vermilye
Henry F. Vail, Benjamin B. Sherman, David
Bows, VIM H. Macy, Samuel Sloan, Levi P
Morton, George Bliss, Jesse Seligman, George
t. Adee, Cyrus W. Field, ohm w. Ellis, Isaac
which are weighty with authority, 1t would
be difficult to name twenty-five gentlemen
more entitled to speak upon the financial and
commercial phases of the canvass which, is
to be terminated two weeks from this day al
the polls.
The article is written i'll the cool, dispassion-
ate tone which always rules the counting
room; there is no attempt at defamation, and
scarcely an effort at rhetorical f1ouli sh from
the first word to the last. These eminent bank
ers and merchants open their survey OF the
field by reminding the country that when, in
1860 the debt of the United States was only
$l91 per capita, the government borrowed
with some difficulty 81 100000 at 10 per cent
interest. Last year, though the debt of the
United was $40.42 per capita, in single day
$194, 100000 was offered to the government at
per cent, when it needed and accepted only
$121 100000. Under the latest Democratic adj
mlnstratiOn the public debt was more than
doubled during four years ofpeace, and United
States per cents. sold at So in December,
1860. Within the last four years the public
debt has been reduced $193, e45 1862, or nearly
six times the entire debt in 1856, and United
Sfnf- A l. d. 40
That represents the contrasts in the par
ty records in gross, and by grand sum
totals. And from it these influential men,
who speak with the fullest knowledge OF the
currents of financial feeling, deduce the be-
lief that transfer of political power at
his..time would naturally cause serious alarm"
Nothing is more sensitive than that intangi-
BILE yet substantial thing, 1.-The public credit"
Change is everywhere its great enemy. So
well established is this axiom that whenever
Europe is agitated by the alarms of war, the
advance and decline of securities on the Paris
Bourse and the London Exchange is always
eagerly watched as the untailing barometer
that can always be trusted to foretell the
storm or announce that it will blow over
American credit is, happily, free from the tluc-
tuatlons OF war and rumors OF war which pc
riodically disturb the credit Of European
neighbors. Our Presidential elections and the
tone and temper of Congress are the great
factors which work for good or evil upon our
public credit, and the vast network of corpor-
ate and private enterprise which thrives when
it thrives, and suffers with its decline. The
paper before us presents an instructive and
impressive outline of the immense fabric OF
prosperity which awaits, not without some de-
gree of justitiable anxiety, the national
verdict of next month, in the following pas
sage:
"A great number of persons are now affected
directly, and much greater number indirectly,
but personally, by every rise or fall in the value
of government securities, while any consider
able change would affect every branch of in
dustry and trade, and nearly every lender or
borrower, laborer or employee in the whole
land
Checks have just been sent to 5000 persons
for quarterly interest on registered 4per cents.
alone. The coupon bonds are still more wide
ly distributed, so that at least 100000 persons
are probably affected directly as holders of
bonds. But the national banks hold in gov
eminent bonds over 100000, 000o or nearly nine
tenths of the capital represented by their
shares, which are owned by 20o,000 stock
holders, and of these 10000 own not more
than 10 shares each and $4,000, or nearly
nlne-tenths own not more than fifty
shares each. The State. banks have about
$7,739000 invested in the same way, and
these probably represent at least $4,000 stock
holders. The loan and trust companies, rep
resenting a large but unknown number of
owners, have about $18000,G00 invested in
United States bonds, or IS per cent. of their
entire capital. The life insurance companies
have about $42,000,000 invested in govern
ment bonds and they represent the savings of
nearly 6000 900 policy holders. The fire and
marine and casualty insurance companies rep
resenting still larger but unknown number
of policy holders. and those doing business in
New York alone have over SOS 900 in
vested in United States bonds, out of about
165,000,0 900 of assets in this country. The
savings banks represent 2,26S,707 depositors,
and hold 1856, SO in United States bonds
In all, not less than 4, 100000 persons are thus
rations as owners OF bonds and would be di-
rectly affected by a decline in the public
credit.
The disastrous effects of a serious decline
would be far more extensive. By the corpo-
rations mentioned about So, 900 900, 000are now
loaned for the support OF various branches of
trade and industry, viz: by national banks,
81 900 100000 by State banks: 100000 900 !;
by saving banks, $4,000 600; by loan and
trust companies, s65, 100000; by life insurance
companies, $500, 100000, and by fire and ma
Tile lESuTdUCC COupdulcS uOluS UuSluGSS III
New York, $30,000,000. Shrinkage of public
credit would involve shrinkage of the assets
OF these corporations, and corresponding and
possibly sudden and sweeping contraction of
their loans. To merchants in their stores, to
manufacturers in their factories, to workmen
in their shops and mills and mines, the conse-
Quences would be not less disastrous than to
the reluctant capitalists or lenders. Never
yet has this country seen financial revulsion
as terrible and as far-reaching in its conse-
quenCes as would now result from a collapse
of that splendid public credit which wise leg
islation and faithful administration have
for twelve years been building up and fortify-
ing"
The paper then proceeds to state succinctly
the grounds upon which the deep financial
and commercial distrust of the Democratic
party is based. That party has led repeated
assaults upon the public faith with the bond
holder, as embodied in bills which it has
fathered for the payment of the bonds in pa
per, by an increased issue of legal tender notes.
1t reverts to Gen: Hancock's recent congratu
lations to Gen. Plaisted upon the greenback
triumph in Maine, to the persistent attacks of
his party in Congress upon the Resumption
act, its not less obstinate resistance to the re-
funding operation OF the Treasury, its bitter
hostility to the national banking system, it's
repeated endeavors to cut down the revenue.
and its dishonest reputation of public obi
cations in most of the States where it has
had complete control of the government. a.
who can tell how soon, if the DemocrSa
party should succeed, the Resumption acl
would be repealed, and the paper currency
inflated? Solemn pledges of public faith
stand in the way. But the Democratic party
has at no time regarded these as bindin9
pledges, and it is not more likely to SO re.
gard them now than it was one year ago
In February, 1879, when specie payments had
continued nearly two months, 106 Democrats
in the House voted for repeal of the Re.
sumption act, and only ~ against it. The