How to solve
the money supply problem
without usury

   How to solve this problem by monetizing a bridge: Coins of silver and gold are small and easy to carry from place to place. A bridge has value but is very large and can not be moved. Both the gold coins and the bridge have these three things in common. (1) Labor and (2) Soil (3) Valued in dollars.

   Actually most silver and gold is no more moveable that a bridge. The silver and gold are usually locked up in a vault (immobile) and replaced by silver and gold paper certificates (mobile). So the non mobile, locked in a vault, silver and gold is made into easily moveable paper money.

   Can the value of a non moveable bridge be replaced by movable paper and work as money? (Yes.)

  Both the coin and the bridge came from the ground via labor

The coin by people going into a mine to mine silver and gold. The Bridge by people going into a mine to mine iron ore.
The silver and gold was made into a coin in a manufacturing plant called a Mint. People smelting that ore and purifying it into iron and steel. Laborers using the steel in the bridge's construction. Cement is mined as stone and processed into cement.
Every part of the coin originated in the soil, was acted upon by man's labor and is valued in dollars. Every part of the bridge originated in the soil, was acted upon by man's labor and is valued in dollars.
Silver and gold, bullion or coin, while locked in a vault is not moveable. A bridge fastened to a foundation is not moveable.
Silver and Gold are replaced by paper to create a hand-to-hand money supply. Can a bridge or other public work be 'replaced' by paper to create a hand-to-hand money supply? (Yes.)

   There are two ways that property rights in the bridge could be divided up among many people. The two ways are Real Estate Deeds and Stock.

By Deed: By means of a deed, several people can have ownership of a building. Each person could have a deed stating their share in the building. In Real Estate it is common for two or more to have a share of a property. Most married people have a 50% share in their home and there are two names on the deed to the home.

By Stock: In business and industry property is divided by Stock. General Motors is owned by the Stock Holders. Each share of stock is a share in the ownership of the business.

   A toll bridge could be a business owned by shareholders. The individual shareholders would put up the money to build the bridge. Each share holder would have part ownership. If a profit were made from the tolls, the profit would be divided among the owners, the stock holders.

   A $5,000,000 toll bridge could be built as a business venture by issuing (selling) 5,000,000 million shares of stock. Each share worth $1.00. The individual shares are not debt, not credit, not notes, not interest bearing instruments. Each individual share is property.

   The individual stock holder can do what he pleases with his property/stock. The stock is his property. He can keep it in a vault. He can give it to his children. He can trade it for goods and services. He can sell it. He could even pay taxes with it. (The I.R.S. may not accept it at first, but if he did not pay what he owed, the I.R.S. would soon seize his stock for payment of back taxes.)

   Most bridges are not toll bridges. They are built by government to promote the general welfare. They are maintained by taxes such as a tax on gasoline. The principle is sound. Those who use the bridge pay for the wear and tear on the bridge. The bridge must be paid for when built. Under the present system most government units do not have the cash on hand to build such an expensive item. They issue bonds, or get a loan from a bank and use tax revenue pay off the public debt plus interest. Very costly for the Taxpayer, very profitable for the Banker.

  What if the government "took stock in America" by issuing stock in the bridge? Perhaps the Mayor and Council could approach local businessmen as follows;

   Mayor,  "We need a bridge. If the bridge were constructed there would be more traffic and therefore more business for you.

   The City does not have enough money to build the needed bridge. The City does not wish to enrich the Banker via interest bearing bonds to build the needed bridge. The city has a large number of unemployed workmen. We propose to pay the workers, part in cash and part in Stock backed by the value of the bridge.

   Mr. Merchant, so that the Workmen will accept the Stock, would you be willing to accept the Stock in trade for goods and services? Mr. Merchant, if you will do this, it means more business and more profit for you."

   The Merchant replies, "You mean just like I accept food stamps and coupons?" The Mayor answers "Yes".

The Merchant asks, "What if I have end up with more stock certificates than taxes owed. What do I do with the extra?"

The Mayor answers, "Mr. Merchant, after using the Stock Certificates to pay your withholding on the local income and sales tax you can use the extra Stock to purchase supplies from other local businesses or use the Stock to pay your employees.

   Your employees could also spend the Stock Certificates at other co-operating local businesses. In fact, because there stock certificates will circulate some time before finally returning to City Hall, a $5,000,000 bridge would result in about $20,000,000 in new business shared by local merchants.

   In addition, since the City will not be paying $10,000,000.00 extra in interest on the Banker loans, we will not need to raise taxes. Perhaps we can even lower tax rates. That means more jobs for citizens and lower taxes for everyone and more profit for you. What do you say? Mr. Merchant, can we count on you to take stock in America?"

Merchant, "That sounds interesting Mr. Mayor. Let me think about it."

Mayor, "Yes, and while you are thinking about it, look at this sample of our proposed Stock Certificates. They will look somewhat like a One, Five, Ten and Twenty Dollar Federal Reserve Notes."


Public Works Stock Certificate
City  of  Hometown


Agrees to accept and cancel this certificate when presented in payment of taxes, fines and fees.

(signed) Sheldon Emry, Mayor
(signed) Steve Jones, Clerk

Mayor Emry

Issued by the people of The City of Hometown for a public work voted upon by the people and ratified by public acceptance of this stock in payment for labor and materials to build the 16th Street Bridge.


T e n       S h a r e s
Each Share Worth One Dollar


   "Here is a booklet that we will mail to each household. This booklet will be a directory listing the co-operating businesses. Civic minded businesses where people can trade their Stock Certificates."



Co-Operating Business

Village of Hometown

16th Street Bridge
Construction Project

Taking Stock In America

  The Mayor continues, "At no cost to you we set aside space for an business card sized advertisement. Mr. Merchant, would you like to design your own ad or would you rather let our printer do it for you?"

   Merchant, "Well Mayor, before I say 'Yes', I have a question. What is to keep the government from issuing limitless quantities of this new paper money?"

   The Mayor answers; "Mr. Merchant, there are two limits to the issuing of this Stock. (1) A backing property such as the bridge, and (2) The Vote of the People. These stock certificates are not issued by a central government or a central bank. They are not Notes or Bills of Credit issued at the whim of uncontrolled government.

   This matter will have to be presented to the citizens of our city at the next election. Look at this newspaper advertisement. Here is how the Ballot will read."

Public Notice

   At the next election there will be a vote on a public stock issue to build the proposed 16th. St. Bridge. The text will read:

   Shall the citizens of our city authorize the issue of Stock in the amount of up to $5,000,000 to fund the construction of the proposed 16th Street bridge?

[ ] Yes.       [ ] No.

   Mayor continuing, "So, Mr. Merchant, you see, the Stock is issued by the people, not by the government, not by the bankers."

   Merchant, "Well that seems O.K., but we could be flooded with millions of these. They could fly about like tree leaves in the Autumn! What is to limit their number?"

   Mayor, "Mr. Merchant, Let's turn the Stock Certificate over and look at the back. These Stock Certificates are self canceling. When they eventually fall into government hands they are cancelled, just like a check is cancelled when paid, you are not going to be flooded with 'printing press money.'

   Merchant, "Yes Mayor, I see. They will just serve their purpose and fade away. Just like a check serves its purpose. The people get something and the banker gets nothing. The government becomes servant, not master. I'll go for that."

   Mayor, "Exactly. Well Mr. Merchant, what do you say, if you sign up now I can get you a favored position in the ad section of the directory."

   Merchant, "Just one last question Mayor, did you run this by Mr. Hyme at the Bank?"

   Mayor, "Yes we did. He said, that while he had nothing personally against the stock issue, he was sorry that his bank could not participate."

   Merchant, "Well, why can't the Bank participate?"

   Mayor, "Mr. Hyme, the Banker, said it had to be approved by the head office in New York. He contacted them. They said NO! They said that their refusal had something to do with 'policy'. The man at the head office sarcastically suggested that banks handle credit, not stock, and that we should drop the whole idea."

   Merchant, "Well, Mr. Mayor. That is good enough for me. That bank has been making more money off my business that I have. They get me on the floor plan. They got me on the mortgage. I pay and pay on equipment loans. The interest never ends. I even had to finance my insurance coverage. Could I have an ad on the inside front cover if I can also get my brother's carpet store involved?"


Notice to Contractors

  Sealed bids will be received by the City of Hometown for various portions of the 16th Street Bridge. Payment for goods and services will be 50% in cash and 50% in Stock. Plans, specifications and details of stock issue are available at the Clerk's office, Main Street, U.S.A.


Next Page - Many Years later

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