Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-09-05

Sometimes TIE GAZETTE grows
tired. very tired, but devotion to the
public welfare does not allow it to stop
10 rest. Il TIE GAZETTE could stop
to rest. it would rest 4 long while be
fore eszayirg the task Of replying to
| the questions put in this communica-
ton:
To the Editor OF the Gazette.
Why can we not have non-redeemable
paper currency.
if The United States says piece Of paper
Is worth 4 dollar, or IS 4 dollar, why IS it
not worth Is much. As money. rs is
piece Of gold bearing the same stamp,
Of course gold has metallic value that at
taches TO # in any Other country; 50 has
iron. wheat or pork Il value as commodity.
Cod is only 4 commodity when we send it
abroad il IS not money, and so IS bought
ami sold. not upon the stamp 1t bears, but
| bv weight as bullion.
Il s not the amount Of metal in coin, but
the stamp II bears that gives II monetary
value. Why would not the same stamp
give same value 70 paper!
The Ben Franklin monetary system-a
far paper CulrenyN--WaS in vogue III the
province Of Pennsylvania for about fifty
years without . crisis or cheek in the COM
mercia, osperity Of the country
Fiat paper money was the circulating
medium in Venice for hundreds Of years,
without resulting in financial disaster or
c3using any embarrassment to business.
Parer money without 4 specie basis can
not contract and expand, as IS the custom
ia this country at present, and as history
shows /, tuA case every twenty o. twenty
tive yenrs. where the circulating medium IS
claimed 10 DC rgdee!ndbe in specie.
OR present paper money IS not redeem
able IN s'sscic. from tho fact there is not
specie enough to redeem more than 4 fourth
part Of it. II is received in commercial cir
Giles, not IS representative Of specie, but
rs d medium 81 exchange representing pro-
duce or labor. c.
The world Is 5000 years old That is
the orthodox age, though biologists and
evolutionists count It's years by the
millions. But in these 5000 years that
we accept as the age Of the world,
there has been no case where pure
fiat money has established itself az a
success. History is full OF attempts
made to introduce fat money, and Just
as full OF failures. Some man who
knew what he was talking about said
that 'An ounce of experience is worth
shfpload OF theory" Theories may
be built up TO show that fat money will
go" but experience has proved that
it won't go" so there's an end OF il.
and there is no use wasting time in
combating the arguments Of the
fiatists When one Of them can bring
forward 4 single instance in the history
Of this old world. in all its long career
Of 5000 years OF rolling and whirling
through space, where system Of fiat
money has been made a success. it will
be time 10 stop and talk with him.
To say that gold derives its value
from the government stamp upon
it, is 10 say thing that comes
from nothing but ignorance. y
gold eagle Is worth $50 in the United
States. in England, in Russia, because
it contains $50 worth Of gold. In the
bank Of England no god coins are re-
ceivcd at their face value unless they
contain metal worth their face value
\ deposit Of fifty American eagles
would not be credited with $1,000 unless
those coins, put in the scales and
weighed, showed that they contained
$1,000 worth OF gold metal. If they
don't contain that much metal, which
is sometimes the case when the coins
are old and worn, the shortage is
dockcd. The government stamp of the
United States of America isn't worth a
cent in adding 10 the value of the coin
A $40 piece is worth $50 because $50
worth OF effort has been put forth by
somebody in getting It out OF the bow
els Of the earth. just as bushel OF
wheat is worth a dollar because it has
taken i dollars worth of labor 10
bring it from the seed to market.
Paper money with 4 specie basis
cannot contract or expand" Why not:
Can't the owners OF paper dollars get
scared and Withdraw them from circu-
lation. causing contraction: And cant
the government printing presses multi
ply these dollars Indefinitely, causing
expansion: Contraction and expansion