The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-11-25

J; zernment to pass any laws legal ten
der or otherwise with unit money.
This unit money together with
gold for paying foreign balances
might well be the basis of our cur
rency. The business of the world
is 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 sub
j ject 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 sys-
tenn should be disturbed. The COM
modify or unit money could be
made the legal reserve instead Of
gold alone.
/ Taxes to Build Warehouses.
You note that unit money is re-
/: deemed and again paid out prob
ably every fifteen months. When
wheat and cotton comes into ware
houses unit money is issued in huge
amounts. just when needed by the
| farmers. This autonlatlcally solves
! the banking problems which now
arise at peak demand, for cur
rency 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
/ banking. / find for eight centuries
it's the same old story Suspension
] of Specie Payments, This need
meyer take place in an agricultural
/ country There are a number of
| administrative details, such as, if
1.-The stored material is not remov-
ed within the time allotted the
same viii be sold at public auction.
! The equity after storage charges is
placed to the credit of the own
!! er as shown on the duplicate GER
/ tificate.
THE warehouses are~to be built
gradually over period of years
by money received from taxation.
The warehousing charges include
depreciation and per cent inter-
est 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 re-
gard to coal is interesting.
4 coal producer would mine a
ton of coal. This he hauls to the
nearest government coal resrvoir.
The government gives him a GER
tificate for one ton of coal and
pays him half of its value, on the
25-year-average basis, in cash.
This enables the producer to mine
coal every 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
lard coal. He purchases certifi-
Gates for 100 tons on = the open
market at the prevailing price
which has been determined by sup
ply and demand, turns these cer-
tifcates into the government 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 house. adding a 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 $3.50 at the mine-a
cost which would be reduced by
the steady operation allowed un-
der the Edison plan. The average
freight charge is about $3.50 a ton.
The actual net cost of coal should
be about s10.00-which it would be
under the Edison plan. But today
it actually costs about S14-a ton,
the difference. being created by in
terest. storage charges and spec
tilative profit.
Coal should be stored" says
Edison. ..in concrete reservoirs
sunk in the ground, LOCO feet long,
50 feet wide. Il feet deep and
kept under water. (Bituminous coal
deteriorates in aio. The mine
owners could then give their men
steady employment and produce
cheaply. Supplies to all would be
certain and price variations less.
The storage charges would be trifl-
ing. and. best Of all. the mine COM
panies would get one-half of the
value of the coal in unit money
without interest. 10 help carry the
coal
The Edison plan would be of
great assistance to she farmer. At
present the farmer sells his wheat
because he must have money to
a.. L.. ...;1.. 70 Lo1a ;+ :. ,,al