The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1894-03-25
THE FIAT MONEY THEORY.
A Correspondent Characterizes 1t AS
Rank Nonsense.
The following viii explain Itself:

The following will explain itself:
Astoria, March 20, 1894
Editor Astorian: There have been peo-
ple in all ages who are unwilling to ac-
cept the hard facts of existence, ana
abide by natures laws as they are, but
are always endeavoring to discover
some subtle hidden or unnatural means
of gaining wealth, prolonging life or
making things easy and comfortable.
Astrologers and fortune tellers have
worked upon the credulity of people by
pretending to reveal their fortunes, good
or bad, generally good, through super
natural means or methods unknown but
to the favored few.
Alchemists have wasted their lives In
the endeaVor to convert common sub
stances into the precious metals. The
elixir of life, the fountain of perpetual
youth, have been sought in vain by Wis
ionary and credulous people in every
generation of men.
OF late years the craze of hallucina-
ton has taken hold of the minds Of
similar class of men In way that
prompts them to attain the desired end
without even the labor of the alchemist
the tricks Of the fortune teller or the
adventures of the searcher after the
Fountain of Youth. The most credulous
If them do not claim to have found the
Fountain Of Youth, but they do think
they have discovered the Fountain of
Wealth for a surety-the process being
so simple and easy that the only wonder
Is, 1t has not been universally adopted
before now All in the world necessary
is to take paper, or any material, and
have the amount 1t is to be worth,
whether one five. ten or a hundred dol
lars, stamped upon It by governmet au-
thority, and It Is done. No need for any
one to be short of cash. Surely the gov
ernment can rustic around some way
and find paper enough, and every idle
man In the country could be set to work
at making roads or other improvements
at big pay, and those who are unable to
to work might be given as much as they !
want, just as we'll as not.
Now this sounds like nonsense, twad-
die, bosh, anything but sense, and so II
Is; bat the fact remains that many reo-
pie in this country actually believe In
Just such nonsense today.
II is claimed that government can
ssue paper money to the amount of
certain per cent OF the wealth of the
So 1t can, but It must agree to
redeem that paper with coin on de-
mand.
Suppose, for instance. that the United
States should have another civil war
and the country be divided up into three
or four, or dozen different nations,
what value does any one imagine would
attach TO piece of paper with U. S.
stamped upon IT, A $50 piece would be
worth no more than one dollar, and
neither would be worth any more than
so much waste paper But $40 gold
piece would stiil be worth its face value,
or nearly so.
You can always buy merchandise with .
gold, or even with silver, but you cam
not buy anything with paper. unless II 1
Is known that the paper Is exchange
able for gold or silver This fact ought
10 be sufficient for any one. but there
ire none so blind as those who will not
zee.
That paper money is a good and con-
'enient means of exchange all admit, ,
nut II must be redeemable in coin or 1t
oon becomes worthless. AS an illustra- !
ion OF the fiab money theory, they point !
0 the fact that the silver coin now In
irculatlon Is only worth intrinsically /.
bout half what 1t passes for But II all /
he gold in this country today were 9
lken away. thrown Into the middle Of =
he Pacific ocean. does any sane person J
sleeve that silver would pass dollar Tor !