History of the United States, Volume 4Andrews, Elisha Benjamin
History
History of the United States, Volume 4
Andrews, Elisha Benjamin
United States -- History
Such popularity of the greenbacks stimulated to fresh life the "fiat
greenback" theory, long in vogue and very influential in many parts of
the country. Its pith lay in the proposition that money requires in its
material no intrinsic value, its worth and purchasing power coming
entirely from the "fiat" of the government issuing it, so that paper
money put forth by authority of a solvent and powerful government will
be the peer of gold. This idea was the rallying point of the National
Labor Greenback Party, organized at its Indianapolis convention, May 17,
1876, when Peter Cooper was put in nomination for President. At the
subsequent presidential election in November, he received 82,640 votes.
The next year his party polled 187,095 votes; in 1878, 1,000,365.
From the moment of its issue, there had been in the country many who
went to the opposite extreme with reference to the greenback. They
believed it unconstitutional and pernicious, a menace to the nation's
credit and financial weal. The question came to the Supreme Court during
the war, and this form of contracting debt on the part of the Government
was then justified as a war measure. When the war was over the question
whether the greenback's legal tender quality could still be maintained,
also had to be passed upon by the court. The first decision was in the
negative, but it was subsequently reversed. Still a third question was
whether a man could be forced to take greenbacks in liquidation of debt
after the resumption of specie payments. This was tried out in the
famous case of Juilliard vs. Greenman, and the decision was, as on the
other two occasions, in favor of the greenback. In spite of all this,
however, the zeal for the fiat or non-promissory theory and practice of
paper money almost totally died away after about 1880.
Public-domain text, read in full here on John Shaqi.
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