, 1922-11-23
A. EdiSOn's
Startling Scheme

lCOntlnueu from First PaSe)
ply and demand. But the GER
tificate does not depend on the gold
in treasury vaults but on the commud-
ity in the warehouse. In one sense the
Edison plan is a return to the ancient
system of barter as far as the complex
ity Of modern life viii allow.
Unit money in the Edison plan Is not
money in the popular conception-that
is metal none with metal basis. The
day when metal furnished the most ex-
clusively practical basis for a medium
of exchange as well as a measure of
value has, according to Edison, gone
by. His money would still be deter
mined in terms of gold. But instead
of gold in treasury vaults being its
only basis, you would have wheat in
the government bins, coal in the gov
eminent pits, rice in storage, cotton in
the warehouses, etc.
"Ail articles deposited in the ware
house." said Edison, bear the same
ratio when loan of unit money is made;
only one kind of unit money is issued.
together with the deposit certificate.
Suppose n farmer puts into the
warehouse 1000 bushels of wheat
graded by the government as No. /
Red. The average price for p years
of this grade. including high war prize
es. is. say. 81 per bushel. The faIrner
is given $500 in Unit money he then
can hold his wheat by means of his
certificate until he thinks the price is
satisfactory. and thus be independent
of the spectators, who now set the
price months ahead, before the crop is
raised. Thsi certificate is bought ON
the exchange ut market price now, say,
SIZE for No. / Red. The farmer would
get $3.50, as the wheat is higher than
the 25-year average. If, on the other
hand. it was selling at 96 cents, he
would only get $460.
But the unit money would not vary.
1t would always be the same because
wheat would not be likely to be sold
over Il period of II year for 80 cents.
In other words, the certificate. or
equity money. would have to be value
less to impair the value of the unit
money.
''The averages are changed every
year. In four or five years the 25-year
average would be less and the three
year high wal prices win bring the av-
erage down, so if wheat sold at even
30 cents it would no. impair the value
of the unit money.
IF n person wants peanuts he buys
peanut certificates, or if he wants rice
he buys rice certificates. or anything
else which the government accepts for
storage; hands in the certificate and
the amount of unit money loaned. and
the commodity is at his order for ship
ment. The unit money is common to
all articles.
THE unit money mo fluctuate.
The capacity or possibility of fluctua-
ton is entirely transferred to the Ger
~tificate. which is subject to the prices
due to supply II demand.
1t is not necessary for the govern
ment to pass any laws. legal tender or
otherwise, with unit money.
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 AVA from us. We should have
behind every paper dollar commodi-
ties of the warehouse type. including
gold, worth more titan one dollar on
forced sale.
A most of our business is lone
with credit money, which is also based
ON credit and commodities, there seems
to be no reason why the present Re
serve Bank system should be disturbed.
The commodity or unit money could be
made legal reserve, instead of gold
alone.
You note hat 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 large amounts. Just
when needed by the farmers. This
automatically solves the banking prob
lens which now arise at peak demand.
for currency expansion and c%Ontrac-
ton of unit money can never do harm.
There is not any illusion in it. 1t can't
stay ont because they must have the
unit money to get their cotton and
wheat out.
Again, these commodities are quick
liquidators. The certificates can be
old on the exchange by telephone.
In books on the history of banking
| find that for eight centuries it's the
same old story-'Suspension of Specie
Payments This need never take place
In an agricultural country. There are
n number of administrative details.
such as. If h stored materials are not
removed within the time allotted the
same will be sold at public auction.
The equity for storage charges is plac.
ed TO the credit of the owner as shown
on the certificate duplicate.
The warehouses are to be built
gradually owe IA period of years by
money received from taxation. The
w~arehousing charges include deprecia-
ton and > per cent interest ON the cost
of warehouse and handling machin-
cry"
In the light of current events. the