The Filer record. (Filer, Idaho) 1919-1930, 1924-04-10
THE PERIL OF
EDISON-FORD'S
MONEY SCHEME
Would Create More Paper Money
Than Russia's TrilIlons But
Add No Real Wealth.
SOME DANGEROUS PALACES
Would Rsmoys Safe Restraint Of Gold
BssIs and Open Way to Endless
Issues Of Paper Money.

How the United States would be
swamped. under a greater volume OF
worthless paper money than has
ruined Germany and Russia. by the
Edison-Ford commodity currency plan
II pointed out in the present article,
concluding the reviews. prepared by
the American Bankers Association.
OF the recent exposure OF the folly OF
the whole scheme By William T. Eos
ter, Director Of the Pollack Founda-
ton for Economic Research. Mr..
Foster says:
1.-The supply OF money says Mr..
Ford. IL inadequate. There Is more
wealth than there is money to move
IT, He draws a vivid picture OF the
golden dam TO the stream OF pros
psrity. From q hundred quarters
comes the demand for the govern
nsnt to speed up the printing presses.
IN order to crush the money monopo-
~ reduce interest rates, and make
II easier for everybody to get money.
Initiating the currency, however.
though 1t enables people TO get more
units of currency, does not enable
them to obtain more purchasing
power, and II does not reduce interest
rates. In all her history Germany
never had so much money or as high
interest rates as in 1922. Money, I'M
lake other forms OF wealth. Is not
easier to obtain simply because the
total supply is increased. On the con-
uary, increasing the supply Of money
ordinarily increases the demand for
money, and interest rates depend not
en- supply but on the relation between
supply and demand.
A Dangerous Fsiisey
we are assured, however. that the
Ford Edison plan provides money for
the farmer at virtually no expense TO
the government or to anyone else.
All the government has to do 10 TO
print the money. What could be sim
pier! Here we come TO the most dan
gsrous fallacy in the whole project.
II II dangerous because Of the uni
versal desire to get something for
nothing.
Here is the Eist Of the matter:
Money will buy whatever is produced.
not a particle more by any trick OF
alchemy, or legislation, or finance.
The Russians. having multiplied their
money 257 900 times. cannot buy as
much with II as before. When we
print more money there are no more
--x- g. ,,onav - htv. mot sinElf
additional plow, or hat, or potato.
Some OF those who get the newly
printed money can buy more goods
than before; all other people can buy
fewer goods than before, because their
money has fallen on in purchasing
power Since there are no more
plows, and hats. and potatoes. and
90 on, to distribute. II some people
get More, others must get less.
Imitation under the Edison plan Is
limited mainly because. on account OF
it's indefensible discrimination. most 1
groups OF producers OF goods and /
services are not allowed to psrtici 4
pate. II all groups were included. a.
In fairness and in politics they would
have to be eventually. the possibilities
Of imitation would be vast.
The Deadly Spiral
The total income OF the United
is now In excess OF fifty bill
lions of dollars. The total money In
including bank deposits
subject TO check. is not far from
billions. II follows that
he annual production. II used as
basis for new issues on the Edison
plan, could at once greatly increase
ne volume OF money In circulation.
livery addition to the monetary supply
would tend to raise prices. The higher
prices became. the higher would De
h loan value OF a given volume OF
reeds since the sire OF the loans y
,ased on values and not volume. The
rrsster. therefore. would be the vol
ne OF new money that could be To-
,usd on the basis OF a given annual
reduction. Prices would become stu
Iirher: and so on up an endless
pirai.
Even in Russia. where financial
,rintinr presses hold the worlds rec ]
"a for volume. where new issues OF
70 hundred trillions OF ruoies per
sonth stsgger the imagination. the
>ople complain that there is not
nourh money to DO business With
Without the arbitrary restraint OF the
cid basis. and with Muscle Shoals
and sundry other kinds
I innationists constantly pressing
,ssr claims upon Congress. i Is not
| all certain that the United States.
ace well on the road 20 financial
Aaos. would In the end be outrun By (
ussfa" r