Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1897-10-21

Legal Tender Laws Were Repealed
the Business World Would Use Only
the Best and Most Convenient
Money-Free Coinage Of Two Of
More Money Metals Would Be Safe
without . Legal Tender Ratio
Evils Of Fiat Money Presented In q
Book inst Out.
A simple. clear. sound and strong
presentation Of the money question is
made by Charles Ii. Swan. Jr., in little
book entitled Monetary Problems and
Reforms" 1t is the last number OF
Putnam's Questions OF the Day Series.
The author believes that legal tender
laws are great curse and are respon-
sible for most OF our monetary evils.
BE makes good case. His arguments
are well calculated TO upset hot only
sixteen to one ideas, but oil belief In
favor Of fiat or cheap money. This be-
ing the heart Of his discussion. we quote
the following extracts from the chap
tiers on Fiat Money and Legal Tender:
VI From an economic point OF view
there can be no difference between an
obligation to deliver what happens to
be medium of exchange and an obliga-
ton otdelyer some other article. In
either event the selection has been
made by the agreement Of the parties,
and the obligation is as to a certain
quantity of certain thing 1t Is thus
that we may say that in economic con-
temptation any obligation to deliver
specified goods sadebt. ltwouid seem
that the obligation made by the agree
ment OF the parties should be adhered
only by the agreement Of the parties.
II would seem further that the obliga-
ton should not be altered indirectly by
changing the definition of terms used
in the agreement, Nor should the fact
that the law looks on debt for money
in q different light from the way In
which ii looks on debt for other goods
make any difference as to impairing the
obligation.
1T is nevertheless true that no des-
potic power Of government in disregard
Of property has been oftener or more
universally employed than this power
Of tampering with contracts, and that,
too, not only by governments, profess
sedly despotic, but even by those claim
ing TO be actuated by the principles Of
justice and liberty.
"These, then, are the three ways Of
debasing the standard coin OF a country
either to reduce the weight Of the
piece and make the reduced piece q
Legal tender for the old piece, or to coin
the same pieces as before, but decree
that each shall be legal tender on ex-
listing contracts for more than its old
name implied, or to coin pieces Of the
same weight us before, but Of a reduced
fneness and to make them legal ten
der with the old. However, II Is not at
all unusual to find that when one of
these methods Is employed in scheme
OF debasement the others are also as
ISOLATED with IT, Debasement properly
speaking, refers simply to applying the
old name to q lesser amount Of metal,
and in order to effect an impairing of
contract rights must be accompanied
by u legal tender law, for otherwise
creditors would not receive the smaller
coins for more than their market value
as stamped metal, but the act of debase-
ment is so universally poisoned with
this legal tender law that the term de-
basement is generally used to cover
both operations.
THE method above described for
tamperlng with the money OF "a country
namely. to debase the coins In weight,
fneness or nomenclature and apply le-
Gal tender laws--is so barefaced and
self-evident fraud that It Is almost
universally denounced, and II is Of late
years seldom used by civilized govern
ment. There is, however, another meth
cd by which the same nefarious end
can be attained under the plausible pre-
text Of regulating the value Of money
as II money needed any other regula-
ton than to be let alone to find Its own
market level. This idea Of regulating
the value Of money has Its enthusiastic
advocates In all countries Of the present
day and has permeated to individuals
in all classes Of society. 1t is based on
the idea that the order Of the govern
ment, the fiat Of law, gives money its
basic value. II is therefore called the
doctrine Of flatism, and money that is
tainted with this idea Is called fat
money.
"A legal tender law, however,
which makes less an equivalent for
more takes no account Of any mans
ability to fulfill his contracts, but with
one fell swoop strikes horizontal re-
duction of debts for all alike and is in
effect universal bankrupt act, When
1t Is said, as sometimes is, that legal
tender law is necessary to avoid bank
ruptcy, such law is in reality rot an
escape from bankruptcy but the most
emphatic confession of bankruptcy.
Among the wrongs done in liberty's
name legal tender must hold pro1ni-
nent place. 1t seems to be almost a
mania to rush to legal tender in any