Indian chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1882-1902, 1891-11-19
FIAT MONEY.


/
The alliance financial demands arc
often denounced as fiat money scheme
and those who support them as advo
Gates of fiat money. The term "fai
money! Is used so frequently and freely
In such variety OF connections that
there is some confusion as to It's real
Significance. by those opposing the
demands it Is frequently used as q term
OF contempt for wildcat imitation OF
worthless paper currency, and those
who favor the demands sometimes use
1t to designate paper currency that Is
not redeemable In gold or silver.
Fiat means make, and as used In the
term fiat money means a money that Is
entirely made or created. The best idea
OF fat money Is that the government
takes the least valuable substance pos
siblc, and by Its fat or power TO mako
gives it fixed and exchangeable value,
not account OF intrinsic value or re-
deemability bnt purely as result OF
the government fiat. An example OF
such money would be paper currency
on which the government printed the
words "this is one dollar with no OBJ
legation expressed or implied to redeem
the issue In any way whatever. This
gives an idea OF the true meaning OF fiat
money, and shows il Is as far removed
from alliance money as 1t possibly can
be.
II Is not our purpose TO take
up the question OF fiat money, but TO
show that that question has nothing
whatever 70 do with the alliance de-
mands. The alliance demands laws au
thorizing two kinds of loans; one time
loans and the other in the nature OF call
loans. The time loans TO be made di-
rect from the government to the people
upon real estate, with limit upon both
the amount Of money and the amount OF
land, and such loans TO be In treasury
notes issued by the government for that
purpose. Practically the government
issues this money redeemable rs now
based on its own credit, and then aug
ments the government assets by like
amount with real estate notes from
those to whom the money Is loaned,
The assets OF the government are in
creased as much as its liabilities, and
therefore its obligation TO redeem is
just as good as now.
The other class of loans demanded
are subject to call by the borrower at
pleasure, and imply an issue of treasury
notes, redeemable, as now, in times OF
scarcity, based on the credit OF the gov
ernment, whose assets have been aug
mented in corresponding degree by
the actual transfer TO its possession OF
the most potential of all forms Of wealth
the products OF agriculture, which
must be redeemed each season for con
sumption. Therefore, the credit OF the
government is not exhausted in any
degree by such issue, therefore the
money issued could not in any degree
become depreclated. 1t Is simply maxi
ing the wealth OF the country available
for the purpose Of circulation rs money,
and undergoes no greater, or, In fact,
any different changes than gold dust
which has been weighed from hand to
hand IN mining districts, when it is de-
posted with the government and GER
tiAcatos issued against it which circu-
late as money. Verify national bank is
sues and greenbacls could be more APP
propriately styled fiat money than can
the proposed farmers alliance money
Natioual Economist