es in all parts of
the economic world are calculated.

With a standardized labor unit of value once determined, there would be
several methods of procedure. One would be to issue a certificate for
each unit of labor performed. The pay-check would then serve as money.
Another method would be for the world parliament to issue metal and
paper money, using the labor unit instead of gold as the basis of value.
In the former case, there would be a labor check, or piece of money in
the community for each unit of labor performed. In the latter case, only
so much money would be issued as was required for the ordinary purposes
of making change. The latter method is the one now in use. The former
would represent a distinct step in advance, in that there would be a
certificate of purchasing power in the community for each unit of goods
and services that was produced. There would be still a third method of
handling the problem, by having the world producers' federation issue
paper currency stamped with the statement "this is a mark" or "this is a
franc," and making it receivable for all legal and public obligations.
If the amount of this "fiat" money were carefully regulated, it would
probably serve all of the purposes for which money is needed. Whatever
its character, it is essential that all money and credit should be
publicly issued and under public control.

The first problem confronting the exchange and credit board would be to
establish some such generally acceptable standard of value. The chaos
now existing in exchange rates is but a foretaste of the difficulties
that confront a world which is attempting to carry on economic
transactions with scores of different moneys and of differing financial
systems.

The exchange and credit board would have three other important fields of
activity:

1. The computation of the values produced by the various industrial
groups.

This result would be accomplished by establishing a clearing house for
reports on production in all industries and in all parts of the world.

2. The financing or exchange of materials between the various
producing groups.

This activity is now carried on by the commercial banker, who handles
trade acceptances, bills of exchange, and the like. It need be no more
than a system of book-keeping, with the balances entered as loans from
the industries that produce a surplus to those that are using more than
they produce. Such a situation would of nece