The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1896-07-08
ALEXANDRIA La WEDNESDAY JULY 8. 1896
CHEAP MONEY DEVIL.
ALWAYS ON HAND TO ENCOURAGE
FIAT SCHEMES WITH SOPHiSTRY
AND GLOWING PROMISES.

ALWAYS ON HAND TO ENCOURAGE
FIAT SCHEMES WITH SOPHlSTRY
AND GLOWING PROMISES.
First Began speculations In tho Middle
Ages-His Method Explained In Goethes
"Faust"-Had Hand In the John Law
Bubble-The French Assignats-Amerl-
can Greenbacks - Now Busy Pushing
Along the Sixteen to One Scheme.
In 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 undervalued
dropped from circulation by 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 in standard
money, as is the case wirah the silver
dollar of the United States and the
franc piece of France The enormous
cost and embarrassment of a fat 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 10 to or to with gold, since the
fiat Of the government would he 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 lnavishly de-
based the money Of their realms aud
meanly defrauded their subjects, just
as tho silveritcs propose to do with the
monetary standard of the United States.
The governor, however, does not go
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").
Far back i'll tho middle ages we read
that the affairs Of the Gormanic 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 tho long ar
rearages Of pay The courtiers in tho
imperial palace complained Of the dep
rivation of the luxuries to which they
had been accustomed Discomfort and
distress prevailed throughout the en-
pre-
At this juncture Mephistopheles ap-
peared Oh the scene, as he always does
Oh such occasions. He proceeded at once
to issue fiat 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 eag-
er to re-enlist. 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 l wonder, I
must let it 60"
But the court fool could not quite un-
derstand this magic paper. of which he
had received 5000 crowns, and he asked
Mephistopheles if this was 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?
Alphabetically. would like to see
you worshipful lord.
Fool-This very evening l will rock
myself in landed estate.
Mephisto (alone)-Who now doubts
the wisdom Of our fool? ~
The other fools held on 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 fnan-
cial ruin when John Law acted as his
fiat money agent in the Mississippi
scheme He turned up again to persuade
the French convention to print millions
Of assignats on the pledge Of the conds-
Gated lands of the nobility and clergy.
His cloven foot was exhibited once more