Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-02-20
EDISON NPLANDRAWS
FIRE Of NORRIS
Head Of Federal Reserve Bank
Says Energy Unit Currency
Is Too Theoretical
GOOD FOR GROCERY sAGEs'

Thomas A. Edison's latest venture
into the unchartcd realms Of finance
and economies. in which he advocates
the rearrangcmcnt Of the worlds cur
rency on the basis Of natural re.
sources" instead Of gold is not marked
by any particular brilliance or pro-
fundity, in the opinion of George w.
Norris. governor Of the Federal Reserve
Bank here.
Mr.. Edison challenged the bankers
to lay bare any fal'acies in his theory.
The latter do not display any hesitancy
in doing so.
"When Mr.. Edison speaks Of cstab.
fishing currency on the basis OF natural
resources said Mr.. Norris today,
"and advocates the adoption Of an 'en.
ergy unit instead Of the usual standard
gold unit. he leaves us in confused
condition.
"what is an energy unit? How is
one to know what IL meant by that, or,
if that is understood, what it Is worth :?
You might as we'll say that the unit Of
money shall be the distance-the frac-
ton OF mile--thnt horse or man
can travel in designated time. But,
Of course, that is highly indefinite.
at would be n matter of the greatest
difficulty to make this change under
any circumstances. anu dh lHcACuSduit
waste of time and energy except under
imperative conditions.
There is no such need now. Our
present system of currency is elastic
and fully capable Of meeting the de-
mands of the situation or any that may
arise. II has been proved the only
satisfactory arrangement by the hard
eyperience Of thousands of years. 1t
has given the world something definite
and reliable as medium of intcrna-
tional barter and exchange: it is an
invaluable stabilizing power.
"A proposition for the total rear
rangement of the worlds monetary sys-
TEN is a suitable topic for debate around
the stove in the country, grocery. but
there is no justification for its serious
agitation at this time"
Mr.. Edison threw down the gauntlet
to the bankers by means of another Of
his famous questionnaires. containing
twenty. six questions. He iovited bank
ers and economists to answer these as
best they could. with an eye to proving
the truth of his theory by their in
ability to do so successfully:
His first question is: What in your
opinion would be the approximate mar.
ket value of troy ounce OF pure gold
il all the governments Of the world
should dem0netlze II!
lie then passes on to interrogations
on the advisablity Of basing money
values on 80 per cent of to value Of
stores of the necessities CT life kept in
Government warehouses. The Ques-
ton of basing money values on water
power as natural resource, among
others, is also taken up.
Must be always, remain on gold
hasis?' he asks. us il beyond the wit
of man to devise any equivalent
method?" this being prefaced by the
question: "Do you think that civilized
countries have, from experience and
knowledge Of economics, reached a stage
where they could drop the fiction. un-
reality and chaotic state of currency
based on gold and adopt money back
of which is real useful wealth OF twice
! the value Of the money issued?'
| Mr.. Edison's proposed financial re-
form drew a cryptic smile from Charles
| S. Calwcll. president of the Corn Ex-
change Bank.
"Hc is a wonderful inventor and a
great man. said Mr.. Calwell. 'but--
it does not necessarily follow because a
man is great in his own line that his
theories on other matters are correct.
Resources of any kind. commodities
of any sort. are valued according to
| their market worth We will lend Il
man money on certain merchandise, not
because he has it safely stored away
in warehouse. but because we think
! that there is certain market for 1t :
that it will be able to command so
much when disposed of. The minute
that market becomes doubtful. the value
| of that merchandise as security begins
! to dcprcciatc.
How. then. is money to be based
upon 30 per cent. or any per cent. OF
the so.called value of certain cOmmod
+ tiles. as Mr.. Edison would have it
done:
/ Take Siberia. for instance. 1t is
an immensely wealthy country in nat :
ural resources. and yet the inhabitants
are in such plight that they lack
even nails to make the smallest repairs
to their homes. Why do they not issue
money on their natural resources;
Would we accept it? We would not
because we have 10 standard values or
which TO judge it. and we know nothing
of the probable market value of its Sc
curity.
For hundreds Of generations golC
has served as n means of standardizina
our money: it has given q solid founda
ton upon which to carry on trade, il
has furnished that stability withou
which money system cannot be sue
cessful.'