The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1894-12-05

| ouBPiNb wants. anu WhOhNNCA
for any cause, it fails to supply these
wants il fails TO have value, notwith-
standing the stamp. The old continental
money bearing the fat Of the sovereign
state Of Massachusetts,, failed to have value
because il failed to supply the wants Of the
people. So my friend will certainly not
contend, that piece Of worthless paper,
bearing the fiat of the government will
have value when for any cause, whatever
it will not supply the wants Of the peo-
pie.
We all saw how the green0acks after
the late war began to lose their value,
because they were failing to supply the
wants Of the people, and there is no
doubt in my mind that they would have
lost all value had not the government
came to their rescue and given them
value. How? by placing its sovereign
stamp upon them? Nay, verify, they
had the fiat of the government, but by
redeeming them in something that
would supply human wants.
My friend can certainly see then, from
these statements, that the fiat OF the gov
eminent confers value on an article only
when it supplies human want, and that
whenever the article fails to supply a
human want or can not be exchanged
for something which will supply a hui
man want, loses its value notwithstand-
ing the stamp of the government. ]. II.
A. says, "Gold coins and silver coins
stamped rs money and paid out into cir
culation carry no promise of the govern
ment with them for their redemption"
Let us see why not. Suppose we put
about one hundred cents worth OF gold
in gold dollar or the same OF silver in a
dollar. Let us now make three SUPPOSE
tons with reference to this money.
Suppose the government issuing this
coin should lose its sovereignty and
thereby render its fiat worthless, would
the holders of this coin lose all II? not at
| all, for the gold or silver in the coins
would bring them something in the
markets OF the world as commodity.
Had the holders of confederate bills
at the close Of the late war, held gold
stamped by the Southern Confederacy
instead of these bills, they would not
have lost so heavily; for the gold would
have brought them something in the
markets of the world.
Suppose the amount Of money issued,
I in gold and silver, is far in excess of the
demand for money; that there is SO
much that the people cannot begin to
use it all, what then will happen?
Your gold and silver coin could not
decline as money much below gold
and silver as commodities, for il the
holders of gold could not get fer their
gold as coin what they could as COM
modify it would be given in exchange as
a commodity and not as money. If the
gold in each dollar were exchanging for SO
cents or 80 cents, then the dollar used as
money could not tall much below these
figures.
II you could trade your gold for more
goods, as commodity than as a money
you would exchange it as a commodity.
Hence its money value could not fall
below its market value. II that portion
of our citizens, doing business with for
eign nations, have international balances
to pay, they will freely take gold and
silver for what they have to sell because
the foreigner will in turn take it to
balance his account.
Hence, gold and silver coins are good
under all conditions, and therefore do
not need redemption. Subject irredeem-
able paper money to the same supposi-
tons and see the result. In my next l
desire TO discuss what governs the value
OF irredeemable paper money, and to
find whether it is good money or not.
~. H. A." says, "All money is fat
money" This statement is true as far
as the debt paying function OF money
is concerned, but to make an article
good money, it must have more than
the fiat OF the government.
RPS.