New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-09-06
THE A BIC OF FINANCE.
r,,r MONEY, A DEBT-CANCELLING DEVICE.

- itbout an increase in the power of the Gov
arnnent 10 pay wond render each note of less
-lue-able to buy less-just as certificate tor 100
tushels Of wheat IN an elevator would BRING
- than the price Of 90 bushels II IL were known
that certificates had been issued for twice as much
,-haat ~ the elevator could deliver To escape this
fatal objection TO the creation OF more money" in
,be shape Of promises. it proposed to Issue fiat
,oonev which shall not promise to pay anything.
1,he note reads, "The United States will pay to
nearer one dollar" But the fiat money would read,
This is one dollar"
ANY man Of means who pays his debts, give
xalue to a piece of paper by writing upon IT his
rledge to pay sum named But what value can
Government give TO piece of paper which not only
does not promise to paw anything, but declares on
it, face that nothing will be paidi Papers stamped,
..This is one dollar" any man can get printed for
himself but they would be worthless. With what
rowers can Government clothe fat paper, that
men shall want it, and give up in exchange for 1t
things which have cost them labor or conf
There is but one power which Government can
possibly eivc--the power to cancel ceOis Nhethet
Government constituuOnally issue legal-tender
paper in time of peace is financial. but legal
question, which need not be here discussed ii
properly issued, does such paper get a value from
the debt-payine power Clearly not. unless It's
quantity is limited. and then 1t gets value only from
valuable il all taxes and all debts could be paid
with thcmf A law that all taxes might be PAID III
paper otherwise Of value, and so abundant that
ANYBODY could easily get il, wOnldb be the same So
repeal of all taxes. A law that all private debts
could be paid with leaves of the forest would not
make the leaves worth 81 esch; II WON"
merely wipe out private debts by an unjust law
This shows that u lcga-tendcr paper gets no Value
from its deb-paying power unless il has value from
al no 4 of il.
scare, enough. and will pay for II. Tie lee IL
fender notes now used are good rs gold, because
men caunOt get them without giving gold or an
soual value IN labor its products. When they
were more plenty, and could he got more easily,
thev were worth less. And ia many lands, legal
fender paper has ceased 20 have any value what
fver Then why should the fiat paper have anyf
It's not proposed. nor is it possible, to fix hnit
beyond winch the issue Of such paper shall not 20.
40 such paper would be wanted by anybody, II IT
wen not 10 be cheaper than notes, and more easy to
cef. Being more easy 10 get il would have less
,alue rs q dcbi-payer. while having no vaue rs
a promise. The lowest amount named Is
81. 100000 600 Less than $500 600 coo of green
back and ban, notes not held RESERVES by banks
O. The Treasury now suices 20 pay al debts; with
donble the amount. debt-paying paper would be LEST
than half rs valuable. No matter what the amount
first issued more would be- demanded. Nothing
pour clt bills knowing than none ale ever 20 he re-
deemed As well Try TO faston up Niagara with
los-chan.
Power 90 cancel debts soon becomes useless, when
The payer paid has no other value. for people
refuse topeImlt new debts to be created. Before
trusting anybody again. men ask, "What is the
paper really worth - j it has value only debt
payer they refuse to loan 10 trust. certificate
Of discharge in bankruptcy has value for debtor
but none for anybody else. So a paper that wipes
out debts may bc want a by man who has debts to
be- wiped out. But why should man part with
goods or lands for deb'-pay ing power, if he has
debtsl He can demand cash for his goods IN hard
money and then pay cash himself instead of running
into debt. 50. whenever paper money IS growing
worse. we find that fewer persons trust or lend.
Many carelcssy suppose that debt-cancclling
power. which Government can give 10 paper. Is the
same Us buying power, which no Government can
give to anything Dat Of that blunder comes the
MOTION that Governmen. can give permanent value
rolap.r by making is full legal tender" All that
II can 90 Il. 90 wipe every debt, taxes included.
When ihe fiat money has done this, and thus has
robbed m,n of their savings. what follows? Chips,
III, mechanic, must have meat for his family aud
oGDu Cat paper. But Chops, the butcher, having
cleared of his debts charges two dollars pound,
in that stuff" Unti WAGES rise, Chips mast qncll
Che Cravings of hunger If he can with fiat beef
steak. lie gets higher wages, but nov Chops re-
fuses TO sell at all for fiat paper Chips expostu-
hates Il d. iera-tendeT money, and had to take
It FOR WAKES" Tic butcher answers that no law
Ubhgos HIM TO sell meat unless he pleascs, and he
does uoi please 20 sell except for coin. Chips urges
that debts can be paid with the paper. Chops
answers. 8" ! have paid mine with just such paper
and now SHAH sell for com and pay COIN What
can the poor mechanic do No one VIII trust him.
for the debt can be wiped out VITA fat. Until he
can get INTO debt to somebody. his fiat money of
no more Use than key Of the Jail TO a man who Is
free already. over a fiat dinner, Chips learns
lesson which other worknen may well learn before
they Get PAID in the same way. i is tins Govern
meut can make paper cancel debts and pay wages
but il cannot make paper buy bread. meat, cloth
Ing, or anything else.
TIL. j. not fancy. for this very fate has bofallen
workincn in many countries. They were paid IN
legal-elder paper, and had 10 take II 10 the end.
The last expiring flicker of the debt-paying power
before it goes cut altogether Is usually payment
o. wages To some poor man who fails to get any one
10 sell HIM food or clothing for worthless paper.
Too poor 70 strike, the workman still takes the
paper clothed by law with the power 10 pay debts,
after all dealers have stopped taking II for goods.
Tie power for canccliing debts remains after all
power for buvng has gone. Again and again. dis
houoTed legal-tender has robbed laborers longer
than any other class. and fiat money, though
quicker poison. would have the same effect. II Is
sued il would go the same road into the waste
basket Men who have debts 90 pay would take II
long enough 70 wipe them Gus, and then would re-
fuse IT, at any price. 1t would be infinitely simpler
and better for Government to enact that all
debts should Dc instantly cancelled The vast
robbery OF all creditors would take place. But debt
pavlng paper would not accumulate in the hands of