the government, acting as trustee without any charges for its use whatsoever.
 The government will have the power to recall the money instead of having to redeem it.
 As the money will have no value in this system the quantity of it issued will not effect its purchasing power.
 Therefore, as the quantity issued will not effect its purchasing power, money, according to the Lawson System cannot be inflated or deflated. It cannot be stretched or shrunk in the measurement of value any more than a yard can be stretched or shrunk in the measurement of distance.
 As security for its own money the people will pledge the entire wealth of their country which will give it a backing equal to its utilization.
 To understand the Lawson Money System one should read the book, “Know Business.”
AUTHOR OF DIRECT CREDITS:
 You desire to dispense with the gold “standard.” While gold may not be a “standard,” yet it is an international medium of exchange, and accepted by all nations and all people as such. Would not the psychological effect of its discontinuance be disastrous?
ANSWER:
 It should be apparent to the most disinterested person that the continuation of Gold as a standard of money has already been proved most disastrous without trying to prove it will be disastrous if a change is made.
 The annual business transacted in the United States under normal conditions is about $100,000,000,000 and that much credit has been established with less than $10,000,000,000 of Gold as security which is entirely insufficient for the purpose even though Gold. should have some intrinsic value which it has not.
 But, by putting the entire wealth of the nation, valued at about $400,000,000,000 back of its money as security it would make no difference what its money was made out of as long as the people through their government put their stamp of approval upon it and accept it as the standard of money for all trading purposes.
 A constant value of exchange — placed upon the monies issued by two or more countries is a very simple matter to arrange between them.
AUTHOR OF DIRECT CREDITS:
 Would it be possible under Direct Credits, for Municipal Detroit to borrow from the Go­vern­ment $400,000,000, the amount of their indebtedness and stop payment of $20,000,000 interest?
ANSWER:
 Yes! It will be possible for the City of Detroit to borrow from the United States Go­vern­ment under Direct Credits Laws, $400,­000,­000 without interest to pay off their indebtedness and then pay off the principal itself to the U. S. A. in annual installments