Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-01-09

new monetary standard Is the desire for
future stability in the value Of money"
As to the proposed electric dollar,
this paper comments: Electricity
is blessed with few Of the character.
istics that history shows are expected
by mankind of its media Of exchange.
The fact that electrical production has
been overdevelcped in many individual
localities, and that ENERGY Is not readily
available because Of lack of trarfsmis-
sion lines in others, are quite serious
objections. The proposal that the cleo
trio light and power companies 60 into
the banking business, by putting up
.kilowatt- futures against the issu-
ance OF currency, ignores one funda-
turned recently to monetary theory as
an avocation have given scant atten-
tion-that credit, and not money, Is our
basic medium OF exchange, and that
changes in the amount Of bank notes
outstanding, short of an out-and-out
currency debauch, affect prices little"
This particular proposal says the
Ashland (Ky.) Independent, may not,
OF course. be the one we want, but sug-
gestlons Of this kind deserve good deal
OF serious consideration" References
10 the quantity and quality of the kilo-
watt hour as q stable currency basis are
analysed by the Springfield (Massl
Union, with the comment: Figured on
an average cost Of a kilowatt hour. this
would seem to be about rs per cent less
than the nominal gold dollar value. In
any event, DR.. Norton claims that the
eiectrlc dollar would have the virture
OF reducing the national debt about Is
per cent. When we get beyond the basic
factors OF the suggestion to the methods
OF introducing 1t into the currency oper-
trxr ~.
somewhat difficult to follow. This
however, Is usually the case with scien.
Hnc or economic theories when the eff
Iort Is made to venture with them into
practical application. For the present
perhaps, the best that can be said. for
the electric dollar is that though MANY
others have been desperately irving TO
.nlnk OF substitute for the gold dol
H. al, II; norton has thought of some
'hdng tnat all the others have missed. -
CONTRARY to popular belief" declares
tne Yakima Daily Republic, this colI,1-
Try Is not suffering from a Shortage Of
money, OF which there is Just as great
supply as ever. There is, in fact. a
greater supply Of money than can be
safely put to work; that is the real
trouble. No one knows today where he
can invest dollar and be assured of
Two necessary factors-reaSonable GER
saInty OF return and a profit on the
investment. The fact that the Govern
ment can still borrow at ridiculously
low rates Is proof that the money Of
the country has not vanished. II Is idle
because there are no jobs for it To
tackle. That condition cannot be over
come by using something and calling IL
money when it is not"
Development Of barter as an Aid tn
business is observed by the Springfield
tMassD Republican with reports of bar
ter exchanges, some with amazinelv
large operations" and located afro,;,
New York and New Jersey to the Pacific
Coast" That paper adds: THE latest
Development is the proposal to estab-
llsh In New York a national clearing
house Tor the barter exchanges which
are multiplying throughout the coun-
Try. The clearing house would enable
inc separated groups of the unemployed
VINO are organized in local barter sys-
tems 10 exchange goods and services
rom locality to locality, from the agri-
cultural raw materials of the rural dis
trlcts 70 the finished manufactured
goods OF the cities, without the use OF
money in the usual form. Already in
salt Lake City the scrip or credit money
issued by the management Of the barter
system there Is said to pass current and
70 be cleared by the banks"
Use of scrip In Atlanta is a subject
OF comment by the Roanoke World
News, which records that the city "has
been forced to issue scrip with face
value Of s40o, 900 to pay of 1000 mu-
nicipal employees" That paper explains
ern city: THE scrip Is negotiable. and
many of the larger firms of the city
are undertaking to accept 1t at its face
value, though they will not give real
money in change. : The City Council
has voted to accept scrip in payment
OF municipal taxes, but made the same
rule that no cash Is to be paid out IN
change. One with tax bill CT SIS
can pay with one $40 scrip and 50
In money, but he cannot offer two $40
scrip notes and expect to receive - y
Ia money In change"