The Republican journal., 1922-01-19
Fiat Finance is in the Air Again.

During every era of deflation. follow
ing a period of initiation and speculation,
comes a movement for currency infla-
tion. The remedy is like that of getting
drunk again to cure the headache and
general physical decentralization after a
debauch Apostles of the people, at
such times, arise to remind the debtor
that while he contracted his obligations
when money was easy he is having to
pay when money is tight. Campaigns of
this kind are always characterized by
great deal of lurid rhetoric about the
money barons, the plutocrats, the bloated
bond holders and the big interests.
The United States has passed through
several such periods, the most recent
being the campaign OF 1896, featuring
Coin Harvey, free silver, William j.
BRYAN, his cross of gold and crown of
thorns. Now, with deflation following
the initiation and speculation OF the war
period, with the day of settlement sue
ceeding the day of financial Joy riding,
demagogues are springing up on every
hand with schemes for making every
body rich and happy once more through
the free and unlimited issue Of fiat money.
When the federal reserve law was
passed eight years ago, one of the leading
bankers of the Middle West declared that
while the immediate effect of the meas
ure would be good, it represented dam
eerous venture of the government into
the banking business and he'd possibili-
ties of initiation which would ultimately
bring reaction and the renewal of agita-
tation against banks and in favor OF
more radical inflationary measures. The
time has come, much fastened by the
&c Attrln n
the war, when that prediction is being
fulfilled.
Demagogues with political bees buzz
zing in their bonnets, are arising to pro-
pose all sorts of lationary pansceas for
the evils arising out of the recent process
of initiation. Coin Harvey is writing a
series of articles for the Socialist Appeal
to Reason. Henry Ford and Thomas
Edison, who have gained fame in the
realms of gasoline and electricity, come
to the front with scheme for the revlv-
al of the Assignat experiments of France
during the Revolution. They would issue
currency based on the property owned by
the government. This means an unlim-
tied supply of new money based on the
ownership of the national capitol and
other government buildings at Washing
ton, the forest reserves, the national
parks, the Muscle Shoals dam, and,
maybe, our air. lane and shipping invest
ments during the war. 1t is the opinion
of Messrs. Ford and Edison that there is
no reason why everyone should not have
a pocket full of money while there are so
many printing presses in the country
that could be utilized to grind out bills
based upon the credit of the United
States.
Germany and Russia are trying this
plan out at the present time. The Ger
man mark is now one fortieth it's former
value. An American visitor to Germany
tells how the exchange value of her
money shrank considerably between the
time when she entered a German bank
and the time her supply of marke was
handed over the counter. In Russia you
trade wagon load of paper money for
basket full of provisions But, as Mr..
Ford and Mr.. Edison point out, every
body is at work in Germany under this
system. But that is because no one
practically, can stop working without
beginning to starve at once, and the
fluctuations of the currency are cheating
the producers for the benefit of exploit
ing capitalists and aliens.
However, MIR. Ford is a candidate for
President and is interested in the work.
ings of his financial scheme only in SO
far as it will promote his political pros
poets, otherwise being boosted in the
outcry of publications and politicians at
tached to his entourage about the wrong
that was done the nations honor when
he was prevented from coming to the
Senate in place of Mr.. Newberry. He is
ready to advocate the free and unlimited
mintage of potato peelings if it will help
him become the candidate of any old
party for the senate, the Presidency or
any other old place.
1t will be the part of wisdom for peo-
pie who believe in sound principles of
government rather than in disastrous
revolutionary experimentation, to take
note of the multiplying symptoms of the
near approach of another inflatlonry
movement, and of the conditions which
make possible the rapid spread of senti-
ment in favor of quack economic DOS.
trums for national ills. The conditions
in the country are not dissmiar to those
of 1894, which led up to the historic cam
paign of 1896 Two things are necessary
TO ward off the possibility of the success
of the forces of imitation and reputation:
the fulfillment, in SO far as this is pos
sible, of the expectations of the people IN
restoration of industrial and agricultural
prosperity; second, the education of the
people in the fundamentals of sound nat
ional finance.