Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1878-09-05
Value of Fiat Money,

The advocates OF fiat money point to the
new silver dollars as an illustration of the
fiat of the government to create value.
Here Is the trade dollar of 420 grains OF
silver, which will pass II at all for but 90
cents while the new silver dollar which
cantains but 4l2 l-2 grains of silver passes
for one hundred cents. or the same as a
greenback dollar. The trade dollar Is not
legal tender, but the new silver dollar is
legal tender. The former by weight is
worth more than the latter; but the stamp
of the government reverses the order and
makes the latter of more value than the
former.
Now the difference made bv law be-
tween intrinsic and legal value In coin is
no proof of the force of the fiat TO give
real to unreal value. The law says that
less than one hundred cents shall be a le.
gal tender for one hundred cents, and that
is all that 1t does or can say. The govern
ment says, in effect, to the creditor: III
you don't take that ninety cent dollar ier
one hundred cents and acquit your debtor,
you can't have any use OF my courts or
officers TO collect your debt. and of course.
without the help OF laws and of courts you
can get nothing. You must take that. or
20 without altogether" That is the way
the fiat makes value Ia paying debts.
but mark you, In nothing else. IL John
Smith wants dollars worth OF butter in
the market. OF ten dollars worth OF cloth
Ia store. and Tom Jones the owner
won't take the ninety cent dollar for IL.
how Is John smith, or the government
either, to help il; Tom Jones J.. stroag
rcAsouer In his way. and he says; My
butter Is worth a dollar. aud my cloth i
worth ten dollars. aud TN not going u
take ninety cents for one. or nine dollars
for the other. Give me ms price or clear
Out " The hat j. not worth a straw. The
government can give value ia paying
debts. for IL can withhold ~ agency in
collecting otherwise than as Il commands.
but there the fiat stops. 10 can't make a
man take IT, valuation Tor goods unlrs. he
chooses IL nobody owed any body, the
idcst thing in all this World % yautles
would be the fiat" that ninety cents
should be . hundred II would be exactly
the rebel way Of masing their money par.
just a. silly aud just as futile. II the gov
srnmeut were 10 make ten cents worth of
silver Ia legal coin legal tender Tor a
dollar aud H can do thai a easily. and
not much more dishonesty, than what q
has dOne-does anybody suppose II would
bring a dollars worth OF food or ANYTHING
else. though Il would pay a dollar OF debt 2
The dat can give value 20 nothing, but 1t
can force a creditor 10 take less value for
greater, by virtually outlawing him II he
does not. The rebels did that but they
couldn't make their money good for any
thing but debts.
The same experiment was tried in the
case of the Continental money. 1t was de-
clared legal tender, but farmers would not
sell their produce for 1t except at large
discount from the face, and il steadily
grew worse and worse. Then the govern
meut declared that those who would not
take this money at its face value in ex-
change for their products and commodities
should be considered and treated as trai-
tors to their country, bu. this stringent,
tyranical, unjust course OF proceeding did
not help the hat money OF the Reyolu-
ton one iota, and il went down aud
down until it became entirely worthless
heaHe6ec Journal.