Evening star., 1922-11-13

The capacity or possibility Of due
tuation Is entirely transferred to the
certificate, which is subject to the
prices due to supply and demand.
IT is not necessary for the govern.
or otherwise, with unit money.
gold for paying foreign balances,
might well be the basis OF our cur
rency. The business Of the world Is
4 single commodity like gold will not
IF it were not for the war we
should not have probably more than
10 per cent OF our currency backed
by gold. ana even that subject to be-
should have behind every paper dol
lar commodities OF the warehouses
type. including gold. worth more than
81 on forced sales.
"As most of our business is done
with credit money. which 10 also based
seems to be no reason why the pres.
ent reserve bank system should be
disturbed. The commodity. or unit
! money could be made the legal re.
serve instead Of gold alone.
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
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
cnfSon 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
same old story--'suspension Of specie
payments This need never take
place in an Agricultural country.
There are . number Of administrative
details, such ~ II the stored material
10 not removed within the time allot-
ted the same will be sold at public
charges 10 placed to the credit of the
owner as shown on the duplicate GER
tidcate.
"The warehouses are to be built
gradually over q period Of years by
money received from taxation. The
warehousins charges include depre-
citation and S per cent interest on the
cost Of warehouse and handling ma
ehinery."
Plan for Handlins Coal Product.
In the light Of current events the
working OF Edison's plan in regard
to coal 10 interesting.
A coal producer would mine q ton
OF coal. This he hauls to the nearest
government coal reservoir. The gov.
ernment gives him a certificate for
one ton OF coal and pays him half Of
its value. on the twenty-fiveyear
, average basis. In cash. This enables
! the producer TO mine coal every day
the year round. practically financing
his operation on the money the gov.
hard coal sr H. purchases % ,Vs e.r.itea,es ,nns e
for 100 tons on the open market at
the prevailing price. which has been
determined BY supply and demand;
, srnnsnt 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. deliv.
, ers this to your house. adding a rea-
, senAble charge to his cost for ship
! ping and handling.
sausloAss the Spectator.
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 op.
Grafton allowed under the Edison
plan. The average freight charge is
about $3.50 d ton. The actual net
cost Of coal should be about $40.
which it would be under the Edison
plan. But today 1t actually costs about
| Sl4 . ton, tha difference being created
by interest. storage charges and specu-
"coai should be stored" says Edi-
son. ''in concrete reservoirs sunk In
the ground, 1000 feet long. 50 feet
| wide, II feet deep. ana kept under
water tbituminous coal deteriorates
In airy. The mine owners could then
! give their men steady employment
and produce cheaply. Supplies to all
would be certain and price variations
tess. The storage charges would be
| trifine. and. best Of all, the mins
companies would get one.half OF the
vAI0s Of the coal Ia unit money with.
out Interest, to help carry the coal"
THE Edison plan would b Of great
assistance 70 the farmer. AZ pres.
Hnt the farmer sells his wheat be.
cause he muet' have money TO live on.
Il he tries "a hold IT And borrow