The times. [volume] (Richmond, Va.) 1890-1903, 1893-08-22
TUESDAY. AUGUST. % 1893.
SIX PAGES.
JUDGE HUGHES ALMOST sURREN-
DERs HIS CASE.


Judge Robert w. Hughes. Senator John
w. Daniel and the Richmond Dispatch
have a greater share OF responsibility
for the heresies concerning silver and
fiat money into which of the people Of
Virginia have been led. than all other
agencies whatever. The Times therefore
will not allow another Of the misleading
addresses from either one Of these sources
10 20 out without pointing out its fallacies
on the spot.
Judge Hughes has letter in the Dis
patch Of yesterday which we will notice
this morning. The whole letter is adj
dressed to the proposition that the value
of money may originate and exist In the
fiat or command OF the Government.
on this theory, that flat can make money
out of oak leaves that is just as good
In all respects as money made out Of
gold. He says:
The flat of the Government It's stamp
on the silver coins, conjoined with It's
legal-tender laws. maintains this parity.
Let Il be freely admitted that In respect
employed too far in elevating
cheaper metal when coined into parity
with a dearer. Nay. let II be conceded.
that even very powerful government
cannot generally maintain a parity by
its mere fiat. between too money metals.
when the bullion value in the market OF
one of the metals falls very far below
it's par value. But whether rightly or
wrongly employed II is the fiat Of gov
40 tnAc Of
currency in parity with each other on
the basis OF legal-tender laws
This. while containing the germ OF all
that Is mischievous In all the other pub
lcations Judge Hughes has made on this
subject. Is very much nearer to sound
doctrines than ne has ever heretofore
come. Because. while holding on TO his
doctrine that money may take its value
from the fiat OF the Government. 1t al
most comedies tie fat may break down.
The best way TO make this matter
plain is TO state Just exactly what are
the functions and limits OF the Govern
ments fiat money.
Government can no more create .aiue
In money than II can create wheat or corn
or electricity. Value rests In the opinion
Of men. But government can do this.
1t can declare that a certain thing.
though of no real value. shall be legal
tender In payment Of debt II the credi-
tor will not receive that thing he will
get nothing. Under this compulsion the
creditor takes that thing, and you may
say. in a certain sense. that the thing
has acquired a value from this coercive
act OF government in putting creditors
In a situation that makes them take that
thing or nothing for the debt. The re-
suit OF this is that If the case stood on
on those naked facts alone. no more
debts would be contracted wnen e.
Government forced worthless fiat no
ney on creditors. No person would ever
allow another person to get indebted
TO him. and as soon as existing debts
WE'RE paid the race OF THE Creditors
would come to an end. II is easy thea
to see that If the fat could only utilize
itself through this form OF procedure It
would soon put itself TO death.
Out thctc 10 dHOtner principle upon
which the Governments fet can make a
thing money which is not money, to a
limited extent. We use the word "fat"
for convenience and because IL is the
word In comon use. though II does not
express the idea we ar about to
deal WI tn. IL the Government
stamps thing, as having certain
value when II does not really possess
that value. but II the Government never
theless proclaims that 1t will receive the
thing as OF that value In the payment Of
al dues 10 II. then tho thing will pass
current as OF the stamped value 50
long a. the Government Is willing and
so'e 70 receive 1t as Of that value. For
why should you hesitate TO take a th.rs
~ dollar. although 1t is not a dollar
when you know that your neighbor who
ewes the Government dollar Will gladi,
sell you real dollar worth for
thingf
ny reason Of tho fact then that the
Government VII take thing as a dollar
weaah u has stamped AZ q dollar. that
shaaa Sri pass Ill around tarouxh that