The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1878-09-14

If il is the guaiity and gi0Httty Of metal-as
the hard mOneyites claim-that makes the
legal tender silver dollar worth 100 cents, why
is it that the dollar OF the same quality con
tanning ~ grains more metal, lacks 10 cents
of being worth as much as the legal tender dol
lar ?-Ottalca NdtioaaI.
This Is poser which the advocates Of the
fiat money craze are constantly presenting, and
which they seem to regard as unanswerablc
II the government fiat can make 80 cts. worth
of silver worth 100 cts, why cannot the govern
ment fiat make bit of paper worth nothing
worth 100 cts? If the fiat can add ten per
cent. to the bullion value Of silver why can it
not add 100 per cent. to the rag value Ofpaper?
We admit that in principle there is no essen
tial difference between the case Of the silver
and that Of the paper. To certain extent
doubtless the government fiat can give an arti-
fetal value to both above their intrinsic value.
So in II like case can Jones or Smith Say
Smith owes Jones, who is II wealthy man, 500
If Jones should sign an agreement to take of
Smith, or any other man, Il peck of potatoes
for 800, that peck ofpotatoes, or paper upon
which the agreement is written, wouu unques
tionably be worth 800 to Smith or any other
man, provided Jones hasn't issued too many
such agreements, and would be made so by
the fiat of Jones So the government makes
90 cts. worth of silver, or in the case of the
subsidiary coinage, 81 cts. worth of silver,
good in the discharge of Indebtedness 10 the
government for 100 cts. As long as Smith
owes Jones 800 his peck OF potatoes is all
right; and so long as the government does not
put out more silver than can be made to take
the place of gold it will be as good as gold at
the government standards but after we have
more silver than can be used III paying govern
ment dues, or settling foreign balances, ali
furthur receipts of gold in the national treasury
or in settlement of commercial balances will
cease and we shall have another gold premium
at once, going up rapidly 30 10 per cent, the
or bullion value of silver
In the case of fiat money the operation will
be exactly the same. The experience OF the
last fifteen years has shown that for the pay
mcnt of tariff impoStS to the government and
the payment by the government of the interest
upon the public debt, about Sl250OO000 of
gold has been amply sufficient If the govern
ment should issue fiat dollars, and make them
receivable the same us gold for all public dues,
there is no doubt that la the extent of S125, 0O0
600, or possibly even 5000 100000, they could be
kept at par with gold, for the government
would be virtually redeeming them in gold
every day by receiving them the same as gold
in the payment of public dues. But suppose
the government should issue more than could
be regularly absorbed IN the payment of taxes
or custom dues, and made no other provision
for their redemption, is any man fool enough
to imagine such paper could any longer I've kept
at par with goldg fit could-if without re-
gard To ITS redemption either in the way of
, lax paying or exchange for metal-the simple
despOtic fiat Of the government can make bits
of paper or chips money, then, in heavens
name, why Is Russia now 50 embarrassed 10
raise money that its legal tender "grccnbaclls"
are worth hut 90 cts. on the dollar, and Turkey
| in such straits that its "greenbacks" are not
worth 10 cts. ON the dollar. Yet the empire of
Russia has less paper money IN circulation in
proportion Ia population to day than the L. :.
have. and m all the elements of wealth is our
equal: and Turkey is at least our equal in the
matter of enforcing It's fiat" if that alone will
make rags money.