The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1894-04-17
FIAT MONEY.
FIAT MONEY OF THE REPUBLIC
OF VENICE, IRREDEEMABLE IN
COIN, EXISTED FOR ABOUT
6z6 YEARS, AND MOST OF
THE TIME AT A PRE-.
MUM ABOVE COIN.

6z6 YEARS, AND MOST OF
THE TIME AT A PRE-
MUM ABOVE COIN.
The Io,ooo,o 900 of Full Legal Tender
s Notes Issued Under Act of Feb II,
1862, and Made Irredeemable in Coin
by Act of March ~, 2867, Continued at
Par With Gold Coin Throughout the
War.
Tutor, George, Harry.
George-What is '6at" moneys L
have often heard the expression used,
Tutor-"'Fiat" comes from the Latin
flo. which means to command, to order
Fiat, applied to money, means money
that is commanded by the government,
under which it is issued, to be received
at its nominal value for all debts, pub
lie and private, implying a penalty for
refusing to receive it.
Harry-Is the fat of our government
sufficient to make a paper currency a
full and safe legal tender without a
metal basisG
T.-Yes. It is the fiat, the stamp of
the government, that gives a circulat-
ing value to our gold and silver coins,
and the same applies to paper money.
Care there any well established
precedents showing that fiat" paper
money, irredeemable in coin, answered
a good purpose as a legal tender cur
rencyt
T.-Ycs, there are a number of such
p~recedents. In the year 117I the Re-
public of Venice, being at war, adopted
a monetary system that was virtually
a fiat paper money, irredeemable in
coin. This paper drew 4 per cent. in
terest until 1923, when all interest was
abolished. But the paper still contin-
ued las it was before) at a premium
above coin for more. than three hun
dred years thereafter. 1t existed until
Venice was captured by Napoleon in
1872 (see pamphlet, THE Bank of
Venice" by the Hon John Davis; the
National Tec8in, Washington, D. c.,
of March %, 1898; speech of the Hon.
Thos. V.-Catorin Fair PIay, San Fran
cisco, of Nov. IL, 1898; the Southern
Mercury, Dallas, Tex, and many other
papers)
Fl i believe Appleton's Cyclopedia
makes mention of said currency.
T.-Yes, it praises it very highly, as
follows: 'It was for many years the
admiration of Europe, the chief instru-
ment of Venetian finance, and the chief
facility of commerce not surpassed by
that Of any other European nation"
Care there other examples where
''hat" money, irredeemable in coin,
was a good and satisfactory legal ten
der2
T.-Yes. The Bank of France notes
are literally fiat" money. They say
so francs, 100 francs, but they do not
promise to redeem the bank notes in
any kind of coin.
The building of a market in the island
of Guernsey, over one hundred years
ago through the fundamentally of
''iat" money is another illustration of
its profitable employment, but it is I'm
necessary to relate the particulars
thereof here (tor a full account of said
currency, also the fiatmoney of France,
see Fair Play of Nov. IS, 1898
H.-What is the amount of the fiat"
money held by France, also the per
capita, including gold and silverG
T.-Mr. VIM. 7. S. John, President
of the Mercantile Bank of New York.
gives the mount 1t 500, 600, 600. This
with 500, GOO, 900 of full legal tender)
silver coin and $500, 600, 600 of gold coin
gives a total of 50 300, OOO, 900, which
for a population of little over SO, OOO,-
600 is about $57 per capita. See the
National VIeW of the 9th of July last }
G.-Has not our government had
some experience with fat paper
money!
,T.-Yes. Under act of Feb. 10, 1862,
SO, O0e, 900 of full legal tender United
States notes were issued, which by the
act of March IL, 1852, were made ire
deemable in coin. These notes were
receivable for import duties and inter
est on the public debt, and continued
at par with gold coin throughout the
war. In June, 1864, gold coin and said
notes were at a premium (both com
handing the same) of 81. 841 IN the
dollar, a dollar of either being worth
50. 643 of the ordinary greenback. This
proves conclusively that if a paper cur
rency be made to perform the same
functions of gold it will at all times,
without a metallic basis, be the equal of
gold.