| Show upsetting price equilibrium steady price levels depend mainly on the balance between the volume of 0 goods on the market and the volume of money offered for far goods the edison plan is designed expressly to upset the balance A farmer delivers say two thousand bushels of wheat to the government Go warehouse and tho the government delivers one thousand dollars in new money to the farmer when the farmer sells the wheat he repays the loan and the government destroys the money thus the volume of money is increased precisely when goods are stored and the volume of money is decreased precisely when these goods are marketed in other words each transaction begins by placing in circulation goods without money to match the goods dollar demand is created as the supply of goods is withdrawn the supply of goods s created as dollar demand is ii withdrawn would it enable the farmer to herow borrow more money on his products than he can now borrow when mr edison contends that farmers would obtain larger loans on their crops than they can now obtain from banks he is confronted by this dilemma either the banks are now refusing to make sound loans or under the edison plan the government would make unsound loans neither mr fr edison nor mr ford can co consistently that banks now refuse to make sound loans tor for that is the way banks make most of their profits and mr edison and mr ford have no doubt that banks aro are conducted for profit it follows that the plan dian would yield larger loans to farmers only it if the government met the risks of unsound banking in that case all that insolvent borrowers gained would be paid by the rest of the population which to say bay the JL ast dst is not a fair deal |
