The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-08-17
MONEY VERSUS FIAT MONEY.
To the Editor Of the Eagle.

To the Editor of the Eagle.
Your correspondents. E. J.-after
reading Wedster's defnation of fiat
money, requested me 10 give the deffina-
ton of money-plain money. l was
satisfied that he was one of a large
class in the country who are laboring
under the delusion that all money was
fiat money and therefore in his estima-
ton fiat paper money was IN reality
better than gold or silver coin or paper
money that is redeemable in gold or
silver coin. His article on money in the
EAGLE of Aug 10 shows exactly where
he stands. Although the true definition
of money is legal tender for debt or as
Webster defines it coin, gold or silver
coin and the true definition of fiat money
is ''irredeemable paper currency not
resting on specie basis but deriving its
purchasing power from the declamatory
act Of the government issuing it.. vet
>. T. j. does not seem TO recognize the
fact that there is any difference between
these two kind of moneys. If a debt is
due him for labor or for some article
of value that he has sold it
makes no difference to him whether
he receives III payment some article of
value that Is an equivalent for the debt,
Or piece OF paper containing no value
whatever, but "a quality conveyed to it
by force of laws" signitied by the stamp
of sovereign power upon the paper that
he must take 1t or lose the amount due
him.
\ man who cannot recognize the diff
ference between money and fiat money
is certainly in depiOrable condition,
mentally. The United States govern
ment has never vet issued fiat money
and what is more it never will. All
the money that has been issued by
the government has been coin or paper
money that was based upon or redeem
able in coin. The experiment of Issuing
an irredeemabie paper currency has not
yet been tried. All of the United States
notes issued were substantially based
upon and redeemable IN coin when pre-
scented to the sub-treasuries OF the United
States in quantities rs prescribed bv
law and in gold coin at that. s.
L. j. very wisely informs us that
the employment of these metals as a
medium for money is open to the many
most grave objections, which takes the
question into the field of broadcast
craftsmanship beyond the limits of this
discussion" We should presume S T.
j. would be slightly beyond his depth
when he proposes TO rule gold and silver
out of use and to substitute an irredeem-
able paper currency for it as money.
He says however he has gone far
enough 10 definitely determine some
things and among them are the follow
ing.-that money is purely a creature Of
law, that IL IS the fiat of sovereign power
constituting some certain thing 4 legal
tender for debt; that all money there
fore Is fiat money" Money is not any
such thing, it is coin gold and silver.
nickle and copper coin or paper currency
that is based upon or redeemable il
coin. There Is no such article as fiat
money in this country, or IN any other.
The fiat philosopher SAYS: Now the
value of money Us such is entirely apart
from the value OF the substance upon
which it is impressed. This is deluslon
The value OF gold coin is purely In the
com itself. The value of silver coin Is in
the coin and in the pledge OF the govern
ment to maintain its parity with gold
coin, and ali paper money has its value
resting on the aoihty of the government
10 redeem 1t in gold or silver coin. and
all the juggling OF these fiat money adj
vocates Viii not galvanize hat money into
real money either IN this generation or
those coming after it. True money Is
the legal tender for debt Fiat money
IS not, nor never has been, nor never
viii be legal tender for debt. Fiat
money exists only IN the Imagination Of
It's blended ylEflrSS Trina rsNnnax-
what the people want ami must have.
and geld coin Is the best material on
which 10 found a standard. This can BE-
supplemented by silver and by papsr
currency that Is redeemable in coin.
and there Is plenty of material for pro-
yiding all OF such money that :he people
need and without wronging anybody.
Z. p. II.