Mohave County miner and our mineral wealth., 1922-11-17
FIRST COMPLETE STORY. OF THOMAS EDISON'S PLAN TO LOWER THE COST OF LIVING


 icate and the amount of unit money loaned, and the commodity is at his order for shipment. The unit money you notice is common to all articles. "rhe unit money cannot fluctuate. The capacity or possibility of fluctu- at4on IS enrirely transferred to the certificate which is subject to the prices due to supply and demand.
 Tt is, not necessary for the govern ment to pass any laws, legal tender or otherwise with unit money.
 "This unit money together with gold TOT paying foreign balances might well be the basis of our cur rency. The business of the world is rapidly increasing; in few years a slngle commodity like gold will not be sufficient.
 If it were not for the War we should not have probably more than 4O% 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 warehouses type, including gold worth more than one dollar 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 system should be disturbed. The commodity or unit money could be made the legal reserve instead of gold alone.
 l Taxes 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 bank ing 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. It 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 tele- lphone. ..- aa.. ~
 "ln books on the history of banking, find for eight centuries it's the same old story-'Suspension of Specie Pay ments.' This need never take place in an agricultural country. There are a number of administrative de- tails, such, as, if the stored material is not removed within the time al- loted the same will be sold at public auction. The equity after storage charges is placed to the credit of the Nowner as shown on the duplicate cer- tificate.
 "The warehouses are to be built gradually over period of years by money received from taxation. The warehousing charges include depreci- atton and 5fo interest on the cost of warehouse and handling machinery" Knocking the Bottom Out of Coal
 Prices
 In the light of current events, the working of Edison's plan 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 Gov ernment gives him certificate for one ton of coal and pays him half of It's value, on the, 25-year-average basis, in cash. This enables the pro ducer to mine coal every day the year round, practically financing his oper- atlon on the money the Government turns over to him every day.
 Now, 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 einment 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. de- llvers this to your house, adding reasonable charge to his cost for shipping and handling.
 The Speculator Squelched.
 The result, in general, would be this: A ton of hard coal today costs about $660 at the mine-a cost which would be reduced by the steady op- eration allowed under the Edison plan. Thea verage freight charge is about $2.50 ton. The actual net cost of coal should be about 5000 which it would be under the Edison plan. But today it actually costs about S14-a ton, the difference be- ing created by interest, storage charge and speculative profit.