Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1896-08-15
FREE SILVER
ny RICHARD p. BLAND.

NOcates lnslst INIT tnere can ne no
good money that depends upon the fiat
of the Government of the United
States that the fiat of Europe is all
right, and that the fiat of Uncle Sam
is weak.
Let us examine into the question.
After all what is fiat money? Is
there any money in this country that
is not fiat money? People by common
consent may accept bank note or
other forms of currency, but such
currency is not money in any true
sense. There is not a dollar in exist
ence in the United States OF real
money that is not fiat money. All the
gold Of the world would not pay a
single debt but for the fiat of the
Federal Government. nor would all
the silver Of the world pay dollar of
debt except by the fiat of our Govern
ment. This is made too plain for
argument.
Should a suit he instituted in court
to collect debt, should that debt he
one hundred dollars, yet it the debtor
rendered in court thousand dollars
worth of gold bullion or of silver bull
lion. the creditor would not be COM
PEELED to take it, for the bullion thus
offered would not be a legal tender.
And this is so with regard to all for
eign coins, whether such coins be gold
or silver. The laws of our country by
the fiat of our Government declare
what shall be legal tender. This is
the fiat of the Government, and with
out this fiat there is no money. A
judgment calling for one thousand dol.
lars cannot be paid by rendering all
the gold coins and all the silver coins
in the world outside of this country.
Nothing can satisfy and discharge that
judgment except the fiat of our own
Government Our laws declare what
shall be legal tenders, and the money
issued under this fiat, and having this
legal fiat behind it, is the only money
with which debtor can discharge his
debt /; therefore, there is no money
except fiat money.
The gold coinage of the United
States and the standard silver dollar
of our country, and our paper legal
tender notes are the only moneys that
have the fiat of the Government be-
hind them, and, consequently, are the
only moneys that debtor can compel
his creditor to receive in the discharge
of his debt. The gold dollar is as
much a fiat dollar as the silver dollar
or paper dollar, for none of them are
money without this fiat. A distinction
may here be drawn between the paper
fiat money and the precious metals.
Paper money may be issued without
limit whatever. There is no limit to
the manufacture of paper.
The piece of paper on which one
dollar is issued may be used with
equal propriety and facility to print
on it one billion of dollars. Paper
may be and can be issued to such an
extent as to depreciate the money to
the value Of the paper on which it is
written. Paper money may also be
made as valuable as gold or silver by
limiting the quantity OF the issue. The
difference between paper money and
metallic money, or rather a system
based upon paper issues alone and a
system based upon the use of gold and
silver is quite apparent in this connec-
ton.
In all the history of the world
neither gold nor silver has been pro.
duced in excess of the necessary de.
mands of the world for money. Silver
and gold cannot he manufactured.
Their volume cannot possibly be in.
creased or inflated or contracted at the
mere within of the Legislature unless
by demonetizing one or both of the
metals or by debasing them. When a
government establishes ratio-that is
to say, when it declares, as we pro.
pose. that sixteen ounces of silver can
be coined into money of the same
value as one ounce of gold that six
teen ounces of silver shall pay as much
debt as one ounce of gold. and open
the minis to the unlimited coinage OF
both metals at this ratio, it means that
nature shall do the rest and the laws
of trade and commerce shall regulate
the volume.
Nature has set its seal of limitation
upon the product Of silver and OF gold.
1t requires the science of the geologist.
the genius of the machinist and all the
appliances of scientific chemistry, as
we'll as the ingenuity of the man, to
extract these metals and separate them
from the baser composition with which
they are found. 1t is said. and truly
said, that it requires gold mine to
work silver mine. The cost of pro.
ducing the precious metals. on the
average. is probably greater than the
value Of the metals after their produc-
ton. The supply being thus limited,
and the cost of production being prac
tically fixed, it is impossible to over
produce the precious metals OF unduly
initiate the currency under the free
coinage of both.
This has been the argument in all
ages, and is to-day, why precious metals
should be used as the basis for our
money instead Of paper. So that the
fiat of Uncle Sam. under the bimetal-
lie law. will give demand for money
coming from the mines of silver that
will maintain its value as the equal of
gold. 1t will give the opportunity for
the industrial people of this country to
Use silver as well as gold.
And should the owners OF gold
corner that metal, as they now have
done, and create an enormous demand
for il as is now the case, owing to the
demonstration of silver should. as
now, the owners of gold insist that all
their bonds and mortgages be paid in
gold-under the free coinage system
the people would have another source
OF supply; competitor with the
owners of gold would be upon the
scene. The silver miner and owners
of silver would at once come in com.