The Arizona sentinel., 1878-11-23
"A Brief History Of Fiat Money

"A Brief History of Fiat Money.
The advocates Of fiat money should care.
fully ponder over the history of the French
assignats and our continental money.
These issues of paper were fat money
paper which each government declared
should be received as gold and silver.
| History shows both became worthless,
and were repudiated. The Continental
Congress commenced with fiat money by
Issuing $3OO0,O00, which were to be re-
deemed in eight years. The colonies de-
this fiat money public enemy" But
in five months after the first issue S3,000,-
IL fiat" cutting off all trade with those
who refused to receive these notes. A
third issue of S4,0O0,G90 followed in q
month, and three months later another
batch of S5,000,000 was put into circula-
tion, making an aggregate of Sl5,000,00O
This fiat money was now SO unpopular
and worthless that Congress directed Gen.
Putnam to issue an order confiscating the
goods which any person refused to cell
for paper, and to imprisor the recusaut.
Initiation. prices ruled as our modern
grecnback intiationists would have them
now. Laborers got Two dollars per day,
but were evidently minus roast beef.
After the war closed the Government en-
deavored to make its fiat paper more pop
ular by passing maximum laws fixing
prices. By the year l777 the volume of
paper dollars had Increased to $25,000,000.
In addition the States had issued an i'm
mense lot of paper, and these notes
were preferred and boarded. The country
was also flooded with counterfeit cur
rcncy, and financial anarchy prevailed.
But the necessities of the war demanded
more of the fiat trash, and 1t was issued in
quantities to supply the demands of the
Government. AT the close of 1779 the to-
tai amount outstanding was Sl0l 100000,
ana the value of which was eight to one
in com. Congress began to learn by Ira
that paper could not be enacted lnto an
equivalent Of gold and silver, and the law
was repealed which had been passed to
equalize fiat paper and gold. But Con-
Sress went on issuing paper in the vain
hope of quicting the excitement which
prevailed all over the country in conse-
quence of high prices. Public meetings
were held to drnounce the monopoli-
zers," and a reduction of prices was de-
manded. The more continental fiat money
the greater the depreciation, and the
higher up went prices. The financial
condition at that time is what the modern
grecnbackiSts would repeat if allowed
their way of "making times better" In
August, !77o, the paper circulation
amounted to S1Gl 100000, and coutnen-
tai paper dollar was worth about six cents
in coin. That's more than greenbacks, |
which are now at par, will be worth in
twenty years hence if the policy of the in
tiationists is inauguratcd But Govern.
ment continued to issue fiat money until |!
the total aloat amounted to S241, ,552, ,2S0. |
which was then worth forty 10 one--and |
depreciation continued until this paper
fell below fvc hundred 10 one. Thus !
ended the fiat money of the revolution |
The intationists would subject this coun-
try to Reputation of greenbacts in the
same way our fathers paid the war
debt created by the Continental Congress. !
They would draw the country INTO tinan-
clal maelstrom from which there would |
be no escape but by odious reputation.