Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-02-12
The Dispatch and Fiat Money.

The Dispatch and Fiat Money.
We hardly know ourselves when we
recollsct the war which the DISPATCH
made against fiat money in 1878, and
then find some OF our contemporaries
falling IA in all seriousness that silver
dollar IL not worth intrinsically as much
"a n gold dollar. We subject the argu'
ments OF the monometallists to the in
,rinsic.value test, and this is set down as
an orcument of ours in favor OF fiat mo-
new. The logic OF the papers we speak
~ ia nj fault. or else ours is. Let us test
the matter.
Has a greenback any intrinsic value ?
None. Then it is "silly" to declare
that a greenback is good money and ct
the same time to declare that silver
dollar is fiat money because it lacks IN
trinsic value. That is clear PROPOSE
,ion. and we have never seen 1T success
fully controverted.
But the very men who declare that the
silver dollar has no intrinsic value are
the very men who tell us that the gov
eminent makes the greenbacks pass at
par by promising to redeem them.
What is this but fiat-money argument?
II, re it is in the words Of the Lynch
burg Tjrginian
"Thcre Is a vast difference, as tho DISPATCH
must know, between a greenback or national
hank note and silver coin. The paper on
which n mans note OF hand Is written Is worth
practically nothing, but IL he IL man OF sub
stance or gives sufficient security bis note Is
worth the amount named on its face. 80 with
national.bank note II docs not pretend TO have
any intrinsic value. 1t is a promise to pay ana
II presented to tho United states TREASURER or
nj the bank Of issue it will be redeemed at its
face value In gold or silver, "a the holder may
prefer. The note speaks for Itself; the people
have faith in the governments promise 70 pay,
and upon this faith 1t circulates iis money"
If piece of paper having no intrinsic
value can he converted into good cur
rency by promising to redeem it in gold
or silver coin, why cannot silver dollar
having 70 cents of intrinsic value, DO
converted into good money in the same
way That is the only point we have
ever made, and wo are surprised to find
arguments addressed to US in order to
convince us OF what we have never de-
MED. In this connection we will say to
our neighbOr OF the Times that the
DISPATCH told its readers in 1878 over
and over again that every man was q
greenback lunatic who held that piece
of paper could be converted into real
dollar by writing upon 1t, "Ths is a
dollar" instead Of "This is good for
dollar" The Times, in taking Us to
task, says:
"Iis the greenback'sl real value rests In the
fact that It contains promise Of tho Govern.
meat Of tho United States 20 deliver to the hold
or OF it a dollar. The time when tho delivery Is
20 be made IS not specified, it is true, but the
faith Of the government Is pledged to the per-
formanco Of tho promise, and that, Of course,
involves the idea that the promise will be per-
formed within reasonable time"
Isn't it clear, then, that if the silver
dollar be made to contain promise Of
the Government OF the United States to
deliver to the holder Of it dollar, it will
have bestowed upon it the same "real
value which the greenback possesses ?
And isn't the Times'S argument fiat
money argument?