The Raymer enterprise., 1923-06-14
Expert Shows How Commodity
Money Would Make Worse the
Evils Il Aims 10 Correct.
MEANS SPECIAL FAv0Rs
AND ADDITIONAL TAXES
Wsuld opsn Way for PoIItIeal Med.
ding With 0uslnsss and compil.
este the Conduct Of Trade
end PinanoA 4


commodity money scheme to abolish
the gold standard and do away with
monetary Instability. interest charges
and speculation In farm products are
exposed By William T. Foster. Direc-
tor Of the Pollack Foundation TOR
nconomic Research, IN an article In
the Proceedings Of the Academy Of
Political Science. He shows that the
only result Of the plan would be to
aggravate the evils It aims to cure
There 70 presented herewith the frs,
Of 3 series Of articles. prepared by the
American Bankers Associa ation. 70
viewing Mr.. Fosters argument
The plan provides. Mr.. Foster Ok
plains. for government built. owned
and controlled warehouses, to which
producers might bring basic commodl
ties raised on American soil. on which
they wish to borrow money. 4 gov
ernment agent would grade the pro
ducsr's goods and hand him two
pieces Of paper--a mortgage certin
cate and an equity certificate.
The Edison-Ford Plan
The mortgage certificate could BE-
exchanged At any national bank for
Federal Reserve notes up to 50 per
cent Of the average value Of the goods
for the previous twenty-five years. In
this way the producer would obtain .
loan Of money without incurring any
expense for the use Of the money and
hs would still own the goods.
"His equity certificate . his svl
dencs Of ownership" Nr. Foster says
He may keep It. sell II or present II
1t bank a. security for Z loan. He
or anyone to whom he sells Il can pre-.
sent It at any time within . year. To-
sether with the exact amount Of mon
" that has been loaned. and receive
the goods.
III the goods are mot removed with
In one year the Government must sell
them and thus get back the money Il
has loaned. This is to prevent an &C.
emulation Of goods and to make sure
that the money will be self.canceling
A soon - the farmer repays the
loan or the Government sells the
goods an amount Of money ID de
stroyed equal to the amount that was
advanced. This. In all essentials, 10
the Edison commodity.money plan.
More Taxes
sMost men will be impressed BY the
fact that It involves additional taxes,
additional corps Of political appoint.
ees and q vast extension Of govern
ment control over industry. II the
special privilege Of borrowing mon
ey without interest ID really q boon
and ID granted only to certain groups
Of producers, the list to be changed
from time to time, somebody must de
eide who are to be the favored
groups, and whether that somebody Is
Congress or Federal warehouse direc
tors who are subject to partisan ap
pointmeAt and removal. the question
who ID to receive free money will un
doubtedly remain In politics and will
rscurrently become Of great moment
o. election day approaches.
"Nr. Edison contends that bis com
modify dollars will be sounder than
gold dollars because there in the
warehouse lies the actual wealth. the
things we eat and wear and must con
sumo to uve.' At nrst, he says. only
few basic commodities are to be &C
cepted. such as grain. cotton. wool
rice, legumes. fats. fax and tobacco
Manufactured articles. he warns US
will not b satisfactory for this pur
pose.
III, then. Q warehouse full Of tobac
co guarantees the soundness OF the
notes issued against II they must b,
redsemable in tobacco. They are, IL.
iact, Federal Tobacco notes. The plan
must provide in like manner for FED
eral Flax notes and so on. Furta,I
more, there would have to be as man;
different kinds of tobacco notes as
thsrs were grades Of tobacco. Every
one who used money In exchange
would need to have at hand the latest
market quotations on all products &C
cspted for storage. ~ they approached
in market value the established loan
value, In order to estimate the relative
values Of different kinds Of dollars.
Gait Cod Notes
Everybody would have to observe
carefully whether hs had Grade A
Kippsred Herring notes or Grade x
Salt Cod notes. II there was q strike
Of bituminous coal miners he would
hoard Bituminous Coal notes. II there
vas slump In cotton he would Try to
get rid Of Cotton notes.
sConsidsr. on the other hand, the
simpiicity and dehniteness Of q gold
secured dollar. All the world knows
precisely what 10 meant BY the con.
vsrtibility Of . paper certificate Into
gold. Az ths world accepts the gold
10 exchange. IL value 10 known II
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