The New York herald., 1921-12-06

raise money by bonds for completion
of the dam, but TO put currency. with
| the dam property as security. this to- be
retired gradually.
! Gold Is a relic of Julius Cesar and
! interest is an invention of Satan" Mr..
Edison said. Gold is intrinsically OF
less utility than most metals. The per-
missible reason why it is retained as
the basis of money is that it is easy to
| control. And it is the control of money
that constitutes the money question. 1t
/ is the control of money that is the
root of all evil.
Now. here is Ford proposing to
| finance Muscle Shoals by an Issuance OF
currency. Very well, let us suppose for
a moment that Congress follows his pro-
posal. Personally. | think Congress has
not imagination enough to do it--let us
suppose that it does. The required sum
is authorized--say $40, 100000 The bills
are issued directly by the Government
as all money ought be.
when the workmen are paid off they
receive these United States bills. When
material is bought it is paid in these
| United States bills. Except that per-
haps the bills may have the engraving of
water dam instead of a railroad train
! and train. as some of the Federal Re-
| serve notes have. they will be the same
as any other currency put out by the
Government; that Is. they will be
morey. They will be based on the public
wealth already in Muscle Shoals and
their circulation will increase that
public wealth, not only the public money
but the public wealth--real wealth, when
these bills have answered the purpose of
building and completing Muscle Shoals.
they will be retired by the earnings of
| the power DAM"
Insurance. Against War.
First" Mr.. Edison continued, this
dam, it's powerhouse and the nitrate
plants should be completed and, even
though nobody operates them, they
should be kept ready to operate at any
time. 1t would be the greatest possible
insurance against war. For II the
world knows that this country can, at
moments notice, start this, the great
est ammunition works in the world
every country will be slow to regard
any treaty made with us as a scrap of
paper
Second. IL any other party offers
more money, can offer better evidence
of faith in this proposition and ability
to operate II successfully let him come
in :: but the whole country knows Mr.
Ford, knows he is a great manufacturer
who conceives great things and moves
rapidly in their accomplishment. Who
else has offered such evidence OF ability
to complete and operate this property?
Third, and this is of great consider
alton. the country knows that Mr. Ford
has the peoples interest at heart. All
he asks Is a small profit. He Is not in
1t to get all he can out Of 1t. On THIS
score he has no competitor
"The people of the United States will
rave all they put into Muscle Shoals
and all they can take out for centuries
The endless wealth making water power
OF that great Tennessee River-with no
tax and no increase of the national
debt"
But suppose Congress does not see
this. what them" Mr.. Edison was asked.
well. Congress then must fall back
on the old way of doing business. 1t
must authorize an issue of bonds. That
is, IL must go out to the money brokers
and borrow enough of our own national
currency TO complete great national
resource and we then must also pay In
terest to the money brokers for the use
OF our own money. That Is to say. un-
der the old way, any time we wish to
add to the national wealth we are COM
PEELED to add to the national debt.
What Ford Wants to Prevent.
Now that is what Henry Ford wants
to prevent. He thinks 1t Is stupid and
so do I. that for the loan OF $4,000, 900
Of their own money the people OF the
United States should be compelled to
pay S66, 100000 That Is what Ii
amounts to with interest. People who
will not turn shovel of dirt nor con-
tribute a pound of material will collect
more money from the United States
terial and do the work. That Is the
terrible thing about interest.
"In all our great bond issues the in
tcrest is always greater than the prin-
cipal The great public works cost more
than twice the actual cost on that ac-
count. Under the present system of'do-
ing business we simply add 120 to $50
per cent. to the stated cost.
but here Is the point: II our nation
can issue dollar bond it can issue
dollar bill. The element that makes the
bond good makes the bill good also. The
difference between the bond and the bill
is that the bond lets the money brokers
collect twice the amount of the bond
and an additional 20 per cent, whereas
the currency has nobody but those di-
rectly contributing to Muscle Shoals in
some useful way. If the Government is
sues bonds II simply induces the money
brokers to draw sac. 900 out OF the
other channels of trade and turn II into
Muscle Shoals IL the Government issues
currency 1t provides itself with enough
money TO increase the national wealth OF
Muscle Shoals without disturbing the
business OF the rest OF the country. And
in dong, this It increases It's income with
out addir~ n penny 20 its.debt.
"T am just expressing my opinion az
citizen. Ford's idea is faultless. They
won't like Il. They will fight It, but the
people OF this country ought TO take II
UP and think about Il. believe Il points
the way TO many reforms and achieve
ments which cannot come under the old
system.
"Of course. as long as the world is
on the gold basis. we shall have to rec
ognize II as an element in international
trade. but Il is not necessary for COM
merce within our own borders. In inter-
national business we can forget it--and
we do forget 1t.
Gold n Trick Mocha nfsm.
"If everybody I'm the United states
suddenly demanded gold for their
money there would not be enough gold.
Gold and money are two separate things.
you sec. Gold is the trick mechanism
by which you can control money