Juniata sentinel and Republican. [volume] (Mifflintown, Juniata County, Pa.) 1873-1955, 1878-10-09
FIAT MONEY,
Its Worth WorkingIneIl.
The Record Of the Past Reviewed 1t
+. -s' Some Length. Ro7dT
The Fate OF our, Continental Currency
= The Experiment BY France, and
J the Result Shall History af
sl y be Repeated? sal --snr

I
country exactly $50 years ago. The colonies OF
NassschGsetis. Rhode Island and Connecticut
tried the experiment in I.2s. II was an era OF
| hard times. The people-or the demagogues for
them-demanded the creation OF loan banks
which should lend money to men short of funds.
Sach banks were created, and issued notes TO
borrowers payable in sixteen years, with use at
four and six per cent These notes were made q
| legal tender, aud the colonial governments took
| mortgages on the real estate of the borrowers
1 or course these borrowers borrowed on longer
on shorter time. depending upon the date when
I the loan was effected. Those who came in five,
six, and eight years after the period OF The
| ten OF the fat money, had SO many years fewer
in which TO use and repay the loans These COM
planned that they did not get their share OF the
! faYors OF fiat money, and demanded larger
| loans TO make good the reduction in time.
| Thus more and more OF the fiat money was
/ tnrned inio the channels OF the circulation,
and every new issue deprecated all that had
] been issued previously. This depreciation en-
! sbled The first borrowers 10 pay their loans more
chesply than they otherwise could have done,
and OF course such debtors Joined in the cry for
more money. But the historian OF those times
remarks that the borrowers in a multitude of
cases did not try TO repay their borrowings, but
/ ran away, and left the banks TO make out as
! best they might with the mortgages and other
securities. The "besiv was bad enough; for il
| was found as TpIe that the pledged lands were
| not worth the debt, or in such condition that
nothing could be realized. Here is what Hutch
! inson, the historian, writes OF those times:
! -. COLONIAL PAPER MONEY.
| rsThe Legislature, conpose-i largely of men
| who had borrowed would allow no extreme
/ measures against The deIinouent debtors. as
/ thai would affect themselves as well as their
/ debtor constituents Foreclosures were dis
cauntenanced, and did not generally nav the
| excitement and trouble thew cansad. Com
/ psiling men 10 repay their loans was looked
anon as a speeies of political persecution. The
! repaynent OF the loans became a political
issue. Politicians were no longer arrayed against
each other. as Whtr or Tory. but as creditor or
debtor and the latter swept the elections
"Tnts legaI-tender money continued 10 depre-
ciste and this had the effect of making n scar
eitv OF currency for il now took several dollars
! TO do one dollars worth OF work measured by
coin values There was great cry for more
I bnIs, TO ma Ee money plenty, business hrisk
| and ge, up enterprises -.
4 "The more paper was issued the less it was
worth and me ouIv class that beuefitet, thereby
I vas those who paid of their creritors in de-
based money; but the more lenders were Inns
cheated. the harder times became for the work
ing classes and there was great distress in the
colonies
| .sSalar,ei men and Isborers Suffered greatly
| from the iebasement of the eurreney.,, saws
The bIsta,Jan Hutchiasn,. .sThe tneuenes
! which a had currency has on the morals of the
| peonle Is greater than is generally Imagined. II
would be lust as rational when the bIoo1 In the
| human bod is In a putrtd and corrupt state "a
1
| order n, restore health =,
| s.A- last the British Parliament ,nferfered.
| and passei.an ART forb,ddinp the issne or anx
more irradeauable legal lender nsner in New
! r,ng,ars colonies and alIowfnV no ,ssnes ex.
can, In The form of sxcbeopsr htiiS ra5aaos ii.
| nv ta-xes In a wear and hearing interest Tn.
| colories NOW SET earnestly. thoueh with only
martial spccess IN fpnd and retire The old no,eS.
| Tbis rrosocad contract,op and The aebior.
raised Ioud outcries against tit The colonial
yovarnrneuts sustained heavy losses in The
,rort- ~ ca Hing In and ceiling rid of rne sinner
| abundant notes. A Spantsb silver dollar wa,
| vor,h "a es s,erltng vbtIa of The note issue,
=, ,ool- c.s IN .aouaI, ON. -stlvs, aoIlsr In IN.
/ r,eanrir,e AL The coin left the country. moi z
| dollas Of harsf money was seen in circulation
rFaAI-TrSnrP ~ 1776.
ax,e-ls-,ca IL, raj ,,,opa,- was very hi,tsr
! a md xua rapaaffr
7,nan came The revolt Of The colonies. and a des
rera,A struggle of a Door people with a rich ans
,,oyrsrf,,I raftnn. Retwsen Jnne. r775. and Feb
rua~v r7-s- slo ooo- 600 of paper money was IS
srat ar,, made a Iepal-tenJer bv Congress. anf
,he senarate colonies as we'll. In addition. IA,
e,,Irs tss,a WAS assigned 10 The colonies aceord
| inc IN tbsir ronulafion ana each colonv wa,
a.to.a ,S, ratira its onota This was really fla
| r,o,sv- for M sooner did IL fail below par-an,
| a paver aoated AZ mar nj aII-lhan Conrres,
erac,e, that any one who should refuse 10 re-
os,,-s tho nofss sbouId he deemed and rreated a,
| an eneusv of his country. Men then. as now
,rent at,o,,t ma xlug speeches declaring that any
! ming a natton called money must be money.
ond a. 600, a. cold and silver In sp,te of an
,b,s Continental currency rsDsei FAR heIoIr ns,
! ,r,,b coin In Iapparv. IL n WAS tonnd
! ns..ssar, IN ,eissue The Congressional mai Thai
the notes we're as good as gold and that anv .er.
81, rat,sin1 IN racei ye them ss srch shouId for.
6.5r the ,alDaor The money. or OF The comInodity
offered IN he purchased. sin. fiat nancy wouId
! moi mass for money at its face and Congress,
wen; 10 thelens,h of decreeIug bapisl,n,ent from
the STATE ss the penalty of refusing 10 receive
the ,otes.
! Al the close Of 177q s2;I Oeo. coo or This fla,
monev was in circulation. some idea OF It's
that s2Do of N vvouId harely uurehase a barrel ot
aoDr I'm 1--s and IN l.a IN ioo, 5aoo L, nurcla 80
! a nalr of boots. And This was ..Iegal- lender,
| ..nal,, money. based truly and only on the
! acls of Congress, aad redeemable nowhere and
| nv nobody. The lesson is PLAIN. That The ad-
yocates of nat money will see and heed The les
| son il moi 50 certain
France tried the experiment of fat money in
| ,7sa The Communists and Democrats of that
| married. fonnd ibsmseIves short Of funds and
| ,yithopt credit They conceived The idea of
| oonhscatjng The church lands. and making
| them lbe basis of the issue of assignats. sleo
ooo eoO of these notes with interest at three ner
| cent. were issusd. and tine National Assembly
| soIemnlv uledsed its faith and promise that NO
more than $40. 900, 600 should be issued. The
| at ssoo oDo. 600. soon the Assembly broke its
nIeIee and issued slsO. OOo. 0OO more BEFORE ,zsa
sgoo az, 600 of these ti.t notes we're in c,,cnIa-
| TO-, e,d af,er the confsc.,iop q, The Iands .,
~ ,o,1a- a. 20. .,-,,o- ha,oh 80
= -, m, a. -, -, =, 20 -
- =, - - - - - " -,' -,
IL ro - -
i"e e"'i'S .o' az io' iess 'an
i's i1-0e was "'''' ou' :" pi'e VI oii' 'ue 'ai1e
OF inls Nat iAo1es nau SUNK >" 10" 'uat IL "oufu
not pay the cost Oh piihlhs As fesards the
losers by TINS wIliul violation OF The laws OF
finance let ihe historian speak;
THE woRKING-cLAsS THE SUFFERERS.
,-.,-..-, r.-.,,,-,.'a,-. a. -. --.lf.f1 -. =
the rorsins classes. snploys,,.sd ID men me- Of sman ii
ulSoA4a, m-osc P'oPSAtJ ." a. Dot ioi ehousu "