Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-11-14
GOVERNMENT TOBE
BANKER FOR NATION
UNDER UNIQUE PLAN
Continued from Page u

AAO SCA tAA3S1IS anu Ih1O e1dAlOdnI VA
unit money loaned, and the com.
modify Is at his order for shipment.
The unit money you notice is com
mon to all articles.
"The unit money cannot fluctuate
The capacity or possibility of fluc.
tuation is entirely transferred to the
certificate which is subject to the
prices due to supply and demand.
SIT is not necessary for the gov.
eminent to pass any laws legal ten
der or otherwise with unit money.
This unit money together with
gold for paying foreign balance
might well be the basis Of our cur
rency. The business of the world IL
rapidly increasing; in a few years a
single commodity like gold, will not
be sufficient.
"If it were not for the war we
should not have probably more than
40 per cent Of our currency backed
by gold and even that subject to
being partly taken away from us.
We should have behind every paper
dollar commodities of the ware
house type, including gold worth
more than 81 on forced sales.
"As most of our business is done
with credit money which is also
based on credit and commodities,
there seems to be no reason why
the present reserve bank and sys-
tenn should be disturbed. The COM
modify or unit money could be made
the legal reserve instead of gold
alone.
To Build Warehouses
"You note that unit money is re.
deemed and again paid out probably
every fifteen months. When wheat
and cotton comes into warehouses
unit money is issued in huge
amounts, just when needed by the
farmers. This automatically solves
the banking problems which now
arise at peak demand, for currency
expansion and contraction of unit
money can never do harm. There
is not any illusion in it. 1t can't
stay out because they must have the
unit money to get their cotton or
wheat out.
again, these commodities are
quick liquidators. The certificates
can be sold on the exchange by
telephone.
"In books on the history of bank
Ing, I find for eight centuries it's
the same old story-'suspension of
specie payments This need never
take place in an agricultural coun-
try. There are number of admin
istrative details, such as, if the
stored material is not removed with
ing the time allotted the same will
be sold at public auction. The
equity after storage charges is
placed to the credit Of the owner as
shown on the duplicate certificate.
THE warehouses are to be built
gradually over a period of years by
money received from taxation. The
warehousing charges include depre-
citation and per cent interest on
the cost of warehouse and handling
machinery"
Lower Coal Prices
In the light of current events, the
working of Edison's plain in regard
to coal is interesting.
A coal producer would mine a
ton of coal. This he hauls to the
nearest government coal reservoir.
The government gives him a certifi-
cate for one ton of coal and paws
him half of its value, on the 25-year
average basis, in cash. This en-
ables the producer to mine coal ev-
cry day the year round, practically
financing his operation on the
money the government turns over
to him every day.
Now, a buyer wants 100 tons of
hard coal. He purchases certificates
for 100 tons on the open market at
the prevailing price which has been
determined by supply and demand,
turns these certificates into the gov
eminent with the amount of unit
money that has been advanced on
them, and the government delivers
100 tons of hard coal to him from
the nearest reservoir. He, in turn,
delivers this to your home, adding a
reasonable charge to his cost for
shipping and handling.
The result, in general, would be
this: A ton Of hard coal today costs
about $3.50 at the mine-a cost
which would be reduced by the
steady operation allowed under the
Edison plan. The average freight
charge is about $3.50 a ton. The
actual net cost of coal should be
about $10-which it would be under
the Edison plan. But today it &C.
tually costs about s14 a ton, the diff
ference being created by interest,
storage charges and speculative
profit.
Coal Storage
Goal should be stored" SAYS Edi-
son, Sin concrete reservoirs sunk in
the ground, 1000 feet long, 80 feet
wide. II feet deep and kept under
water bituminous coal deteriorates
in air. The mine owners could then
give their men steady employment
and produce cheaply. Supplies to all
would be certain and price varia-
tons less. The storage charges
would be trifling, and, best of all,
the mine companies would get one
half of the value of the coal in unit
money without interest, to help car
ny the coal"
The Edison plan would be of great
assistance to the farmer. At pres
ent the farmer sells his wheat be-
cause he must have money to live
on. # he tries to hold it and borrow
money for operation he has to pay
an exorbitant rate Of interest. Nine
times out of ten he must sell his
product when it is in marketable
form. It Is ordinarily bought by
speculator, held in warehouses for
higher prices, and may be sold back
and forth a dozen times at a profit
each time before it finally reaches
the hand of the manufacturer who