I hereby present to your attention a mechanism of
relations in which the European Union or a state body emits book-entry securities,
displaying the property right to the marketable export goods of the countries
participating in the accounts. A book-entry security that represents the money
value of goods minus the emitter’s share is transferred to the owner of the
goods. The security displays the ownership right to the goods, but has
measurement in currency of the country of its reference. The quantity of goods
for which the security owner has property rights, is defined proceeding from
the official tariff of the commodity unit. Possibility to use the security
nominated in currency in the banking clearing channels allows using it as
commodity money.
Export operations in exchange for financial assets in the currency of
the non-resident cause an essential loss (loss of production expenses) to a
national economy of the manufacturer. Accounting
between national economies through counter-trade promotes world production
growth, allowing the countries to specialize on those goods and services which
they can make and render with the greatest productivity. These goods are
necessary to be reflected in the form their money' equivalent by means of securities
to be used in accounting between trade parties. The legal sense of payment by securities
certifying the property rights to marketable goods reflects counter- trade of
goods, transformed into commodity money.
The use of production (goods, work, and services) in
the form of a document measured in currency provides the manufacturer with
monetary capital. The manufacturer transfers ownership to production to the Fund
in exchange to securities. Production is delivered to a certain place of warehousing.
The Fund transforms ownership rights to production into book-entry securities
that measure the goods in national currency of the Union
according to official tariff of the market unit cost. The sum of commodity
money can be any and does not depend on the tariff of a commodity unit. The
main goal of implementing payment document is development of economic
relations. In order to achieve this goal the ownership right to goods acquires
the qualities of labor saving and those of another product monetary equivalent.
A security reflecting the goods becomes a monetary equivalent thanks to its
currency estimation, and not because of the quantitative measurement of goods. The
same with the gold – when transformed into coins, it was measured in currency,
instead of oz. Everyone knew the official tariff size since they knew the goods
quantity measured by currency.
The security is presented as a depositary
(securities`) account of "the
commodity capital» certificate in a bank depositary. Change of cost of the financial
obligation is reflected in the change of the sum of commodity unit tariff and of
the certificate nominal amount on the holder’s depositary account. The Fund
establishes time frame for the accrual to depositary account of an annual
interest of the securities nominal value. The accrued interest reflects the
income in commodity measurement from securities nominal value. The Fund
establishes the security interest on the basis of share market interest rate, whereas
the sum of the official tariff is based on the goods market value.
The primary owner of a security as a provider
of commodity money delivers production to a certain place. Production shipment
is executed upon presentation of a security for redemption. The owner can pay with
a security in the required amount from the sum on the depositary account or
sell the security at a required price (with discount or nominal value award). The
Fund takes upon itself obligations to owners of depository receipts in the bank
system which became such as a result of public turnover. The Fund’s share forms
a basis for risk decrease from execution of a certain oil delivery contract for
securities redemption.
The “commodity
capital” certificate par in the corresponding sum of national currency is
registered in the securities’ register. The bank depository conducts depositary
(securities) accounts of the "commodity capital» certificates and
registers them as a nominal holder in its name in the register. In relations
with the legal owner of certificates the depository bank signs a contract to
maintain a depositary account of «the commodity capital certificate».
Rules are prepared in the form of a legal framework. The
framework defines an order of securities` issue which sums up the rights and
the mechanism of relations for securities` turnover. When the Fund receives the
ownership rights or request for delivery of goods, it has the right (if it
wishes) to place corresponding certificates in the state reserve bank or at an authorized
reserve bank of the importer’s country. The Fund registers only either assets
(the bill of lading, a waybill), or liabilities (delivery obligations) accounting
balances of participants in the form of book record, avoiding excessive
complexities of transactions.
An authorized reserve
bank serves the turnaround of transactions by registering for nominal holders as
depositaries conducting securities accounts for certificate owners. The “commodity capital certificates” account
in reserve bank’s balance sheet corresponds to the number of certificates, owned
by the EU as one of its assets. Placing of certificates at a reserve bank
increases in the bank balance the “commodity capital certificates” account (assets)
and the depositary (securities) account of the “commodity capital certificates”
(liabilities). The liabilities depositary “commodity capital certificates”
account in the assets of the receiver of the certificate is the personal account. The depositary account is opened for accounting operations with
the certificates accepted for keeping. Despite a complete coincidence of names
of balance accounts, the liabilities of commercial bank depositories have
nothing in common with the Fund’s assets we are describing. As a matter of
fact, it is an ordinary check for acquisition of a certain marketable commodity.
The commodity capital certificates” account does not constitute a loan to EU and
is considered a banking system asset.
It is necessary to remind that order documents
(ownership right) are not financial or depository documents (obligation). The
order document divisible at its nominal value and negotiable as a book-entry
security is creation of a new legal form of the monetary capital. The legal
sense of money as ownership right to marketable goods (commodity) is much more
reliable than the legal sense of money in the form of a commercial bank
obligation that does not represent an economic asset, and does not circulate on
production market. Unlike the Fund the Central bank does not have any
obligation before the owner of a commercial bank account that disposes of money
as an owner. Moreover the bank depository does not have legal possibility to
create its own obligations, as opposed to commercial bank’s possibility to issue
financial obligations. Use of "goods" as a monetary capital will
considerably increase demand for it and its cost since it will acquire a
savings function. An ordinary person with modest financial assets can turn into
a buyer of goods. The Fund regulates cost of commodity money (share of discount
or the award from par) by managing goods quantity and the unit tariff. The securities
coverage allows their trading at commodities stock exchange. The given
circumstances provide balance between commodities and money supply.
