Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1896-06-11
CHEAP MONEY DEVIL.
FIAT SCHEMES WITH SOPHiSTRY
AND GLOWING PROMISES.

First Began specula.ions In the Middle
Ages-His Method Explained In Goethe's
Bubble-The French ACCOMPLISHMENTS
can Greenbacks Now Busy Pushing
Along the Sixteen TO One Scheme.
In a recent interview Governor Alt
geld Of Illinois told how many hundred
years gold and silver were maintained
in circulation at a fixed ratio by the fat
of government. 1t is not disputed that
whenever the legal ratio has conceded
with the market value Of the two metals
they have circulated together without
any need of legislative fiat, but when.
ever the legal ratio did not coincide
with the commercial value of the two
metals, having equal privileges at the
mint, the coinage that was u~ndervalued
dropped from circulation by a law more
potent than the decree of government.
Of course deprecated currency can be
Kept in circulation so long as a govern
ment may be willing and able TO keep
the promise to redeem it III standard
money, as is the case with the silver
dollar of the United States and the 8
franc piece of France. The enormous
cost and embarrassment Of a fiat cur.
rency to the government of the United
States are witnessed in the frequent
borrowings of gold to provide for its re-
demption
To Governor Altgeld it is a matter Of
indifference, as he says. whether the
legal ratio for the free coinage of silver
be l6 to l or 8 to / with gold, since the
fat Of the government would be as ON
nipotent in the one case as in the other.
But in giving the history Of fiat cur.
rency for the instruction of Illinois edi-
tors and speakers he might have men
| toned in the course Of his narrative the
royal coin clippers who knavishiy de-
based the money of their realms and
meanly defrauded their subjects. Just
as the silverites propose to do with the
monetary standard Of the United States.
The governor. however. does not 60
back quite far enough In tracing the
origin of fat money. We have the high
authority Of Goethe, who deeply pene-
trated the nature Of things, that the
Observation-Disclosures the invent
or of this kind Of currency (for which
see the second part Of "Faust''l
Far back in the middle ages we read
that the affairs Of the GermAnic empire
were in the greatest disorder. The treas-
ury was empty and utterly unable to re-
deem its obligations The army was
ready to mutiny because Of the long ar.
rearages of pay. The courtiers In the
imperial palace complained Of the dep.
rivation Of che luxuries to which they
had been accustomed. Discomfort and
distress prevailed throughout the en-
pire.
At this ju~ncture Mephistopheles ap-
peared on the scene, as he always does
on such occasions. He proceeded ut once
to issue fat currency under the author
ity of his imperial majesty. At first the
emperor was shocked at the monstrous
fraud, and Indignantly asked who had
dared to forge the imperial name.
| threatening at the same time that such
a crime should not go unpublished. But
the imperial scruples were soon removed
by the Arguments of Mephistopheles and
| the brilliant success of the scheme. The
treasury was quickly replenished. The
army, having received its pay. was Gag.
er 20 r~e-eniist. in the imperial palace
the courtiers, and even the pages, had
money to burn, and prosperity again
dawned upon the empire. In his aston
ishment the emperor asked: "And does
this pass for good gold with my people:
Is it accepted for full pay by the army
and the court? Much as / wonder, l
must let it GO"
But the court fool could not quite un-
derstand this magic paper, of which he
had received 8, 1000 crowns, and he asked
Mephistopheles if this wa good moneys
worth.
Mephisto-You can have first what
ever your gullet and belly may desire.
Fool-And can / buy with it fields
and house and cattle?
Mephisto-Of counsel Demand only
that, and it shall not be wanting to you.
Fool-And castle, with forest and
deer park and fish pond?
Mephisto-Truly. ] would like to see
you a worshipful lord.
Fool-This very evening / will rock
myself in a landed estate.
Mephisto (alone)-Who now doubts
the wisdom Of our fax
The other fools,t q fon to their magic
money until it withered to nothingness
in their hands. When the inevitable
crash came Mephistopheles had business
somewhere else in his vast domain. The
same parsonage again made his appear
ance to lure the French people TO finan-
cial ruin when John Law acted as his
fat money agent in the Mississippi
scheme lie turned up again to persuade
the French convention TO print millions
| of assignats ON the pledge of the confis-
Gated lands Of the nobility and clergy
His cloven foot was exhibited once more
when congress was induced TO issue an
immense vUlume Of legal tender paper;
and he laughed with Satanic glee when
this greenback currency deprecated to
less than so cents on the dollar He is
now busy at the Tugs of the numerous