Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1878-08-09
Fiat Money.

in winch they ,c,n1h 'grate w. ,helr
own satisfactory lIty the Sl-called
iiat none, Is \ dcIuSlon and snare,
aud ,peak5 Of lne idea Of SUCH cur
rcncy III being founded in ignorance
and denagosi sn.
do not claim tp be infallible or that
the conclusions have formed may not
be erroneous, but do claim that those
who are opposed TO me are just as l't-
Die to be mistaken as am, and ~ y
presunptuous in any mere man to
confidently announce that because
others differ with him in opinion,
therefore their views are necessarily
founded in ignorance.
Probably he real point Of difference
between those iii favor OF and those
opposed to All issue OF the So-cdlled
fiat money is simply whether or not
il Is necessary chat the substance Of
which piece Of money is composed
should have Il value in itself us Il com
modify that is III intrinsic value equal
to the legal tender quality gwen IL by
the stamp and laws Of the govern
mcnt.
III this question must be answered
in the Affirmative, ii is decisive against
an issue Of fiat money; but if not, then
hn ('nnTrngl
might deem best, in accordance with
sound principles Of public policy. 1t
is clear that admitting that money
must have an intrinsic value, still in
trinSic value is not money. For in
stance, II mass Of gold weighing % $40
grains, and Of the requisite iinene5s,
being coined by the government, be-
comes money and is legal tender in
the United States to the amount of
one dollar, but mass Of gold Of the
same weight and lineneSS, not having
the government stamp upon it, IL not
4 legal tender or money for any pur-
pose, but is mere commodity, al
though it and the gold dollar Lave in
trinsically the same value, so that we
are led to the conclusion that ii is the
coinage acts of Congress that gives to
u coin those qualities which distin-
guSh tia money from the mere arti-
clcs OF commerce. Money derives all
its value as money from two consid-
eralions; first, its power to discharge
debts, and secondly from its purchas-
ing power 1t is point too clear to
require argument to show that what |
ever substance is used for money, if |
its power to discharge debts is tho |
same, and its purchasing power is as
great as gold and silver coin, it has an
equal mopey value, no matter how
great difference may exist between
the substance of which 1t is composed,
and gold and silver when considered
us articles of commerce.
II has long been settled that Con-
grcss has power TO declare what shall
be legal tender in payment Of debts,
except where the CONTRACTS establishing
the debt declares in what currency it
shall be made, for if by the terms Of
the contract payment is to be made in
gold coin, Congress could not declare
il payable in either silver or paper
currency; and on the other hand, If it |
was payable in paper currency. Con-
grcSs could not make it payable in
anything else, not even in gold, for it
is prohibited hy demonstration from
passing any law that will impair the
obligations Of the contract. Now il |
an act Of Congress should provide for !
an issue Of liat money and declare,
This is lawful money of the United
states and legal tender for Ill debts,
public and private, to the amount OF !
ten dollars il would discharge the :
same amount Of debts That cold
eagle would, for 4 ten dollar gold piece
would discharge only ten dollars of
indebtedness, aad the ten dollar piece
~ iit money hy virtue 81 the legal
tcntef acts, would tl0 the same; there
fir" II one rcsper, al least, viz. in lis
poMir q discharge indebtedness. it,
money salrc w0aIl Ia equal t. gold
aud sliSercoin II, now. we show chat
hy virtue of is Legal tender qualities
iyS purchasing power would ia IL
a,cu Is gold OF SILVER coin, we snail
aaSe established (Naat deem 10 br
tlua) taat i !, no. necessary that
money have N intrinsic yaae but
that il is hy virtue Of al act of Com
gte,s that atl mono derives Ills money