Title: Money Bona Fide or Non-Bona Fide
Author:
Edward E. Popp
Date: 1970
Publisher:
Wisconsin Education Fund
ISBN: none
Length: 126
pages
Quote:
“While it is appropriate to use the term usury
when referring to very high interest rates, we must also remember that demanding
low interest rates may be usury as well...if it is physically impossible for the
borrower to pay them...also...if the lender loans counterfeit or inflationary
money.”
Before
Bitcoin, there were small groups of people, disgusted by the antics of the bank
and money industry, who got together and worked out schemes to invent their own
“money,” valid among members of the group only. It’s legal, legitimate,
potentially a useful market corrective, and also severely limited. Given the
alternative of being paid in Good Neighbor Coupons or in U.S. dollars...well,
actually, for the duration of some very successful Town Festivals, intelligent
people do exchange U.S. dollars for
Good Neighbor Coupons. But not during the rest of the year.
During the
recent Grapefest in the suburb-town of Grapevine, outside Dallas, wine, art,
and street fair lovers shelled out the dollars for coupons, with the warning
that this year’s coupons would have souvenir value only at the end of this
year’s Grapefest. That’s typical. Citizens could send a message to the federal
government in an absolutely legal, public-spirited, and probably delicious way.
People who’ve tried it have, however, generally been tagged as wingnuts whether
“left” or “right,” and alternative money has rarely reached high value even as
a souvenir. Grapefest coupons just aren’t considered as exciting a collection
piece as Confederate money, old-style printed food stamps, or 1940s ration
tickets.
Edward E.
Popp and his Wisconsin Education Fund seriously wanted to correct the 1970s’
“recession” with their own Wis-cash. (Insert jokes about cheese and/or snow
here.) They wanted others to consider similar correctives: the bigger a protest
movement gets, the better.
The result
of which was...that Popp wrote a book that’s of historical interest to
present-time protesters. The late George Peters had studied this book, while
able to see, and his review is worth quoting here:
“This Mr.
Popp gets out in left field about page 70.
It won’t
work as he says.
Even so it can
be done.
But I guess
there would be some injustice.”
Nevertheless, there was considerable appeal in the idea, as expressed on page 29:
“There will
not be inflation and deflation...No one will have a monopoly...The price of
goods and services will not be able to be raised or lowered by the banking
system...People...would know that when the government asked for more taxes, it
would be asking for the people to work harder...Government officials, as well as
others, who expect the government officials to take something from everyone to
give something to all, might—just might—learn the meaning of justice and they
just might think about practicing it.”
One of the
Islamic world’s great advantages is that, although Islamic banks demand money
from customers to sustain the bank operations, they don’t charge interest that
compounds into a spiral of debt and inflation. Muslims can be extremely rich or
extremely poor; more of them are poor than are rich and the traditions of
modesty and generosity don’t completely fix this, but they know how rich or
poor they are, year to year. They pay a straightforward, reasonable fee for
using a bank if they do, and keep their cash if they prefer not to use the
bank, and their countries don’t reach economic conditions where they have to take a wheelbarrow
full of money to the store to fill a handbasket with groceries. Some of their countries have been poor, before the oil boom, but money has tended to keep its value.
Jewish law
forbids charging interest on loans to fellow Jews. More recently written
corporate law removes individual Jews from the responsibility of owning a
corporation that is an out-of-control, amoral money-making machine with no
religious identity, so Jewish Americans suffer as much from mortgages and
credit cards as everyone else does. The trouble in the United States and Europe
is that for a long time Europe allowed businesses to be operated by specific
families. Jews were often barred from farming or entering trades, so they
specialized in banking. While only the Rothschilds became quite as wealthy as
the Rothschilds, the historical fact was that a loophole in the law of Moses
allowed Jews to gouge as much interest out of enemy nations as they could get.
As bankers they tended to define everyone, even Jews of different nationality,
as an enemy.
The other Europeans, who were nominally Christians and thus
claimed to be adoptive heirs to Abraham, might have adopted the law of Moses
for themselves and built a modern banking system as good as the Islamic one,
but the historical fact was that they chose to treat everyone, even relatives, as an enemy, when it came to
charging compound interest on terms limited by what had rallied a mob to run a
banker out of town recently. They approached banking the way they perceived the
Jews doing it only without even the constraint of kinship. And this fouled-up
system, with its roots in intertribal warfare as a primary source of wealth,
was what they brought to North America. Europeans learned about banking at a
stage in their evolution when they still heard a claim like, “I never worked a
day in my life! Every one of those cattle grazing on the hill was won from another man in a fight!”as a boast. And unless and until we start by recognizing the law of Moses,
trying to fix our banking system is going to be like trying to bathe a Tar
Baby—a glob of tar wrapped up like a baby (or some other object people wanted
to pick up) to fool the naïve into getting tar all over their hands and
clothes.
Such
reforms as we have achieved have been made primarily by religious groups that
are willing to be perceived as extreme, fanatical...and puritanical, with bans
on all sorts of things manufactured by Unbelievers just because the community’s
hoard of money is maintained by members not buying this or that.
Popp’s
recommendation for reform started with using coins—“as few Federal Reserve
notes as is practical”—and, if “producing or selling goods,” “issue
certificates of credit,” and, “if our governmental body is in need of money and
is considering borrowing it, advise it not to borrow, but to issue tax credit
certificates.”
It’s still
workable, Gentle Readers. Making it work will require mindful use of money,
frugality, discipline, purchasing things from individuals you respect even if
you can get similar things cheaper from the greedhead corporations. The
Internet can help mindful communities connect across the miles but, in the long
term or on a large scale, it won’t be reliable; the Internet itself is a
greedhead corporate scheme and will be made to work against anyone who is using
it to beat a monopoly or price-fixing cartel. (Similarly, the federal
government will, if regarded as our only defense against the monopolies and
cartels, become the biggest monopoly of all.) Then again, since we’re all
subject to uncontrollable losses of income these days, those are ideas worth
our attention in any case.
If you
don’t have much income, it’s much better to live frugally on a small income
than it is to have more of some things
doled out to you as a welfare cheat.
If you have
a decent income, it’s much better to make your own purchasing decisions and
reward people who produce good things than it is to peel off money mindlessly
for whatever the big-chain stores push at you.
Do you need
Popp’s Money for guidance on mindful
spending, or would a newer book or one relating to a community that interests
you, such as the Mennonites, be more useful? Which should be your first book on
mindful use of money is a topic beyond the scope of this review. I recommend
Popp’s Money as a book for people who
are ready to form an economic community (and not willing to affiliate with a
religious one). If that’s not where you are, Money is primarily a book of historical interest. It can help you
communicate with “preppers” of a certain vintage, being part of their history.
It did not inspire a major economic movement all by itself, and plenty of
historians will tell you it was read only by wingnuts and has no historic
significance; they are wrong. But it is a short, simple, readable book that may
inspire you to connect with others and become an economic community.
This review says nothing about specific attempts to create and use online community money. That is intentional. Popp obviously did not foresee Bitcoin and this web site is observing Bitcoin for a few more years.