The advocate., 1897-11-03
general union would be before US, and
the prospect would be more agreeable
and vastly more encouraging
BRIEF LESSON IN FIAT.

counterfeit silver dollars OF greater
weight and fineness than those turned
out from Uncle Sans mint are in cir
culation in that city. During the last
week st. Louis bank tellers have been
accepting the cOunterfeits in question
without hesitation. 1t was only when
they reached the sub-treasury that their
spurious character was detected. United
States Treasurer Small sent one to the
Director of the Mint for assay He re-
ceived a reply in which the statement
was made that, although the assay had
not been completed, there was no doubt
there was more pure silver in the cOun-
terfeit than in genuine coin, and that
its 1neness exceeded that Of the genuine.
According to Colonel Small, the coins
weigh 1871 grains more than the genu-
inc, which weigh 4121a grains. It's fine
ness is "a per cent, while that Of the
genuine is but 80 per cent.
COunterfeting gold or silver coins Of
the United States is by law crime
punishable by fine not exceeding $4,000,
and by Imprisonment at hard labor not
more than ten years. These lately dis
covered counterfeits contain more silver
and of finer quality than the genuine,
yet if the makers are found they are
liable to fines of $4,000 and ten years
imprisonment each.
This is a revelation to the student of
monetary science. The metallic money
school contend that the precious metals
alone are money; that certain quantities
Of them are worth certain amOunts-nOt
because the law of the land has anything
to do with it, but because Of the intrin-
sic value of the metals. The law of the
country provides that any person may
deposit gold at any mint and it will be
coined for him without charge at the
rate of 25.8 grains nine-tenths fine to
the dollar. At that rate 258 grains are
equal to ten dollars. A ten-dOllar coin,
then, would contain 1922 grains of pure
gold, and 25.S alloy,
Now, suppose John Doe goes to max
ing and circulating gold coin contain
ing 24O grains Of pure gold and Is grains
of alloy--a coin containing grains
more of pure gold, with eight-tenths of
a grain less alloy-a heavier coin by
seven grains than the genuine: why
should Mr.. Doe be punished for giving
more than ten dollars when he need
give only that amount? If the intrinsic
value and little more is there, is not
that sufficient?
Four hundred and twelve and half
grains OF silver nine-tenths fine, when
coined, are worth dollar, so say the
friends of metallic money. There are
about 500, 900 900 of such dollars now in
the country, and the party that Is re-
sponsible for our present monetary sys~
tenn says these dollars are just as good
as gold. The Advocate wants to know
how the metallic money theory that it is
intrinsic value in the metal and not the
fiat OF law in the coin that gives 1t its
worth, can be harmonized with an act
Of Congress furnishing person for Civ
ing more pure metal than Is necessary
to meet the actual value involved in any
transaction.
OF course we understand the reason
why laws against counterfeiting are en-
acted-tO protect the people against
fraud and to limit the coming privilege
to the sovereign power. But what we
want explained is, if value of the metal
is intrinsic-worth the same in all parts
of the world and independent Of law,
what is there wrong in the giving OF
more value than is equal to the amount