The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1896-08-01

Our friend, the Catschist, shou Id no
waste any of his energies in setting up
men of straw and knocking them down.
A considerabl BILE part of the above letter is
devoted to that useless and wasteful ex-
ercise. The PRESS has never questioned
that fat currency ESQ called
Ia theoretically posi- BILE. 1t
simply claims that it is not
practically possible. Furthermore it has
referred naither to the fat money people
nor the silver people as 'cranks or fools, ,
rs our correspondent attempts to insinu-
alto. This is discussion regarding
things thab are practical, and a purely
fiat currency. whatever it may be theo-
retIcally, is not practical. 1t is attended
with SO many dangers that every
enlightened nation has discarded it.
From this danger" (oyerissue), says
Prof Walker IN his work Cd money, "a
people receiving into circulation an in
convertible paper money can never es-
cape A single weak or reckless admin
istration, one day of commercial panic,
"a mere rumor of invasion, may hurl
Says Alexander Hamilton, "Yet they
Commissions of paper money! are of ma
ture SO liable to abuse, and, it may be
affirmed. SO certain of being abused, that
tho wisdom of the government will be
shown in never trusting itself with the
pertinent. % "The1e has never been gov
eminent yet, which had the wisdom or
firm will tc resist for any great length of
time an oyor ISSUE" says Prof. Perry.
Here are citations enough to show how
the authorities regard an inconvertible
paper currency. A man that should rec
omn end trial of it by tho United States
might be neither "crank'' nor a
''fool," but he would be a very danger
ons adviser. and if his counsel should be
followed wide spread calamity would
eventually be the result of it. But In
the case of inconvertible paper it if
not the fat of the government that
makes the money. 1t is simply agree
ment among mon who are exchanging
products to take it. When that agree
lnent ceases then the stamp of the
government is powerloss to prevent lit
depreciation and rejection.
The paper money that Cateohist says
the people are using everyday is not in
convertible paper money. 1t is simply
promises to pay money, government
notes which the people take because they
believe the government will keep Its
promises in regard to them. The holder
of these notes can get coin for then
whenever he wants it. "Cateohi5t'
knows this perfectly well, and when be
undertakes to make it appear that these
notes are dollars or purport to be dollars
he is presuming good deal more thar
he safely can upon the ignorance o
people. 1t is is bald misrepresentation
"Why not have iron and copper dollars
makes them money" asks Cateohist, ant
then he proceeds to answer his question
in way that completely destroys hi:
assumption that it is tbs lsgal fat of the
government that makes them money.
The abundance of copper and iron is SC
great as would compel the government
to increase enormously the weight and
size of the copper or iron
dollar, or limit its coinage.
says Catechist. But each dollar
would have the fat of tho government
attached to it. and If it is the fat of the
government that makes them money.
the material of which 1t is made ought
not to have anything to do with its value
as money. What good would it do to In.
crease the weight of the metal If the fiat
is the thing? Would a government fat be
any more effective stamped upon pound
of metal than upon an ounue
The Whole fat theory is broken down
by this admission that it would be neces-
sary to increase the size OF the dollar.
The truth is that the fat of the govern
ment does not make things money in any
proper sense of the phrase. The gov
eminent simply certifes to the
weight and fneness of certain
disks of metal. Whether they shall DIR