From: Gerald A. Levy (Gerald_A_Levy@MSN.COM)
Date: Sat Jun 05 2004 - 07:40:39 EDT
I am going to forward four recent messages (3 by Walt Sheasby and 1 by Matt Forstater) to the "Kapital_Gang" list (a low-volume 'yahoo' list) because they seem to be relevant to our own discussions on the emergence of money. The message below was posted on 5/25/04. In solidarity, Jerry -------------------- MARX ON THE ORIGIN OF THE MONEY-FORM Phoenicians bartering with early Britons. Painting in the London Exchange by Lord Leighton [reference to photo in orginial post, JL] By Walt Contreras Sheasby By roughly 700 BCE, barter between communities took on an unprecedented volume of trade. Marx argued that *Direct barter, the spontaneous form of exchange, signifies the beginning of the transformation of use-values into commodities rather than the transformation of commodities into money (Marx, 1970: 50). Marx proposed a distinct source for the origin of the money-form: *Nomad races are the first to develop the money-form, because all their worldly goods consist of moveable objects and are therefore directly alienable; and because their mode of life, by continually bringing them into contact with foreign communities, solicits the exchange of products* (Marx, 1976: 183F; 92M). This hunch about the prehistoric past was based on a theoretical supposition that Marx presented as certainty: *In fact, the exchange of commodities evolves originally not within primitive communities, but on their margins, on their borders, the few points where they come into contact with other communities* (Marx, 1970: 50). According to Marx, who had read the available classical Greco-Roman accounts more closely than any of the political economists, a pattern was clear: *This is where barter begins and moves thence into the interior of the community, exerting a disintegrating influence upon it. The particular use-values which, as a result of barter between different communities, become commodities, e.g., slaves, cattle, metals, usually serve also as the first money within these communities* (Marx, 1970: 50). Current archeological research bears out the ideas Marx drew from classical accounts, but the explanations are more complex. The focus is on the Scythian, Sarmatian, Sakas, Massagetae, Ta-Yueh-Chi and early Mongolian nomads who inhabited the Eurasian steppes during the first millennium BCE. The men rode on horseback, the women on cattle- drawn wagons on which their felt tents were set. [photo in original post, JL] *The first of these mounted nomads to attract the attention of historians were the Scythians. If the Scythians were not the first to domesticate the horse they were among the earliest, if not the first of the Central Asian people to learn to ride it.* http://www.silk-road.com/artl/scythian.shtml As Marx would undoubtedly appreciate, the new tools ushered in with the Iron Age (bridles, iron plowshares, sickles and scythes appear) had a profound economic impact, leading to an agricultural revolution associated with plow technology, human population growth and migration, and the explosive growth of cattle-breeding. There was a final separation of tribes of wood and steppe zones to main types of economy. Traditional cattle pastures were soon becoming overgrazed, forcing the herders to travel further from the agricultural settlements in the great river valleys. What emerged was a nomadic way of life, of constant movement to and from winter pasture to summer pasture. Beginning in about 1000 BCE and continuing to nearly 1000 CE, many tribal peoples of the Central Asian steppe changed over to nomadic migration as a way of life. Moreover, during the sixth century BCE to fourth century CE, major climatic changes may have led to a deteriorating steppe ecology that increased population pressure toward a nomadic way of life for many. With the widening orbit of grazing and bartering, the nomadic tribes brought formerly disparate communities into a complex exchange process. As the Russian historian (Nabatchikov, 2001) says, *The unlimited stretches of steppe instead of being a separating factor became the uniting factor.* [another photo in original, JL] An elephant with a humped bull on reverse. From King Azes II, Scythia rule in Pakistan 35 BCE to CE 5. Scythian art tells a story of interaction with the Greek world, which eagerly purchased grain, furs and amber from the Scythians. Profits from this trade brought Scythians the wealth to indulge their taste for elaborate objects ranging from torques to horse decorations. As an exhibit of nomad gold (designed by Alex Castro (200) points out, the Scythians grew rich on trade with the Greeks, and commissioned lavish gold objects for adornment, ceremony and battle, drawing on their own ancient artistic traditions and employing the finest Greek goldsmiths of the age. [another photo, JL] Two Maenads, one holding hide the other leg portion. IV cenury BCE Scythian plaque. In the process, the exchange of animals, hides, and other products for Grecian gold established the relative values of various commodities. Ultimately, the very process of barter is undermined by its success as the focus shifts from the use-value or utility of objects to the exchange value of the key commodities that serve more and more as a medium of exchange. As Marx states, *The gradual extension of barter, the growing number of exchange transactions, and the increasing variety of commodities bartered lead, therefore, to the further development of the commodity as exchange- value, stimulates the formation of money and consequently has a disintegrating effect on direct barter* (Marx, 1970: 50). As we will see in the next message, the actual invention of standardized coinage in about the 6th Century BCE took place at the intersection of the trading routes that had grown up over centuries of nomadic commerce. *Slaves, cattle, metals,* as Marx puts it, were all to play a role in the evolution of the money-form. REFERENCES Map of the Scythians' domain. http://www.hunmagyar.org/history/scyth/21.htm Castro, Alex (2000), Gold of the Nomads. http://www.brama.com/news/press/thumbs/gold450.jpg Marx, Karl, Capital, Vol. 1 (1976), London: Penguin Books; (1987), New York International Publishers. http://www.marxists.org/archive/marx/works/1867-c1/ch01.htm http://www.marxists.org/archive/marx/works/1867-c1/ch02.htm Marx, Karl (1970), A Contribution to the Critique of Political Economy, New York: International Publishers. http://www.marxists.org/archive/marx/works/1859/ critique-pol-economy/ch01.htm Nabatchikov, Prof. (2001), Introduction, Art of the Caucuses, http://www.arcaucasica.ru/exhibit/GNC/eng/GNC_intro.htm
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