The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-09-02
Fiat Moncy..-A BIS or History.

[From The Lexington Gazette.]
It has been claimed that the issue OF green
backs by the fiat Government, which has
control OF all the property OF the nation for
taxation, should make that greenback good.
That it is thus based upon the whole real
and personal property Of the whole people,
and must OF necessity be good. mat tue
Government will make it good by declaring
it legal tender and compelling men to take
il. Let us look at little piece OF history.
At the time OF the French reVoiutlop'
after the overthrow OF royalty, the conhsca-
zion OF the land placed funds worth above
So. SOC. 0OO, 900 at the disposal OF the Govern
ment. Upon this land, as security, there was
issued 81 $50, 100000 Of paper money. The
quantity in circulation at the fall OF Robe
sphere amounted to six millards four hum
dred millions-about 81, 500,000,OO0. But
the Government did not trust simply to the
ample security thus offered. 1t used all its
power to compel men to take the assignats.
One OF the laws passed enacted punish
ment OF twenty years in irons against
any one who should exchange any guam
tity OF silver or gold for a greater NOM
inal value Of assignats, or should ask a
larger price for any articles Of merchandise,
il the price was paid in paper than ii paid
in the precious metals. This was making
it legal tender with vengeance, and yet
what was the result? Though based upon
such security and propped up by the power
OF q deSpotic Government. the attempt TO
sustain the value OF the assignats was to-
tally nugatory. Debtors Of every descrip-
tion fastened to discharge their obligations,
and the creditors compelled 10 accept
paper at par, which was not worth fifth
or q tenth, and at last hundredth OF its
Tnfr NJ
greatest part OF their property. The work
ing classes, whose wages in consequence OF
the general stagnatiol OF industry had by
no means risen in proportion to this fall in
the value of assignats, found themselves
miserably of for the neceSsaries OF life;
while the farmers, raising the price OF their
provisions in proportion TO the fall in
the value OF paper, soon elevated them
beyond the reach OF the laboriDg poor.
This necessitated the passage OF 4 law
regulating prices, called the maximum.
Farmers then declined bringing their pro-
duce to market. DomiciIiary visits were
authorized to inspect the stock OF each
holder OF grain; not only grain, but
horses, carriages, and conveyances OF every
sort, were forcibly taken from the farmers,
and, as the payment they received was in
assignats, it in truth amounted to nothing.
The public creditors were paid in assignats
at par. The tax imposed on an income OF
$4,000 was $4,000. All the measures of Gov
eminent, how vigorous and despotic soever,
proved inadequate to sustain the falling
value OF the assignats or keep down the
price Of provisions-a monument, though
a bloody one, to the folly Of all attempts by
governments to issue tiat money. TO such
tyranny do governments resort when they
once violate the freedom of human action,
and to such tyranny do the people subject
themselves when they abandon themselves
to insane passions.