Del Mar: "The Plunder of America"

Another not-so-brief excerpt from one of Alexander Del Mar's books; History of the Precious Metals.

This from the introduction to Chapter 40 (page 136), "The Plunder of America":

The History of the Precious Metals in America can best be told after clearing the ground with a brief review of the monetary condition and circumstances of the states of Europe at the time when America was discovered. Strictly speaking, these circumstances would carry us back quite to the beginning of metallic money in Greece; but of this event a full account will be found in the author's previous works.

Suffice it to say in this place that after many experiments with coins of gold and silver in the Greek and Roman republics, these metals had been so far abandoned as money that the measure of value in those states was eventually made to depend less upon the quantity of metal contained in the coins, than upon the number of coins emitted and kept in circulation by the state.

The integer of these systems was called in Greek, nomisma, in Latin, numisma both of which terms relate to that prescription of law which conserved and emphasized the numerical feature of the system in each state.

Such integer consisted of the whole sum of money; not upon any fraction of it. '

Upon the relinquishment of these systems, both the Greek states and the republic of Rome again committed themselves to metallic systems, this time with open mints or private coinage ; the consequence of which was the gradual concentration of wealth in the hands of a few persons, a circumstance which powerfully assisted the downfall of the state.

Upon the assumption of imperial power over the European world by Julius Caesar and especially by Augustus, private coinage, or the issuance of "gentes" coins, was at once forbidden and the state once more assumed the control of money, which, although the pieces were still made of the precious metals, was so regulated as to constitute a more or less equitable measure of value: the principal means employed in this regulation being the imposition of mine-royal- ties and a seigniorage or "retinue" upon coinage, coupled with a localization of the bronze and sometimes also of the silver issues.

This highly artificial system, though it lasted several centuries, gave way when the subject kingdoms and provinces of Rome revolted from her control and established themsefves as independent or partly in- dependent states ; a movement that began with the so-called Barbarian uprisings of the fifth century and was completely consummated when Constantinople fell in 1204.

At this period the quantity of money in circulation, outside of the Moslem states, was extremely small ; according to Mr. William Jacob, the vast acquisitions of the Empire had disappeared chiefly through wear and tear, coupled with the lack of fresh supplies of the precious metals from the mines.

Much of these metals had been taken as spoil by the Moslems and transported to their various empires in the Orient ; much had been absorbed and sequestered by the temples and religious houses of the West ; and much had also been hidden and lost in secret receptacles. It was estimated by Gregory King in 1685 that the whole stock of the precious metals, in coin and plate, in Europe, at the period of the Discovery of America in 1492 did not exceed ^35,- 000,000 in value; and to this estimate Mr. Jacob, after the most careful researches, lent his full support. The population of Europe at that period could hardly have exceeded thirty millions; so that the quantity of coin and plate did not much exceed in value ^i, or say $5 per capita. Of this amount it could hardly be supposed that more than one-half consisted of coins.

The low level of prices at this pe- riod fully corroborates this view. Moreover, there was nothing to alleviate the scarcity of money ; no means of accelerating its move- ment from hand to hand, and so of increasing its velocity or efficiency ; no substitutes for coins; no negotiable instruments; no banks ex- cept those of the Italian republics; few or no good roads; no rapid means of communication; little peace or security; and no credit.\

Since the fall of the Roman empire every device by means of which this inadequate and always sinking Measure of Value could be en- larged had been tried, but in vain. The ratio of value between gold and silver in the coins had been altered by the kings of the western states with a frequency that almost defies belief. The coins had been repeatedly degraded and debased; clipping and counterfeiting were offences so common that notwithstanding the severest penalties, they were often committed by persons of the highest respectability, by prelates, by feudal noblemen and even by sovereign kings.

The emission of leather moneys had been repeatedly attempted, but the general insecurity was too great and the condition of credit too low to admit of any extensive issues of this kind of money. Bills of ex- change known to the East Indians as hoondees and familiar to the Greeks and Romans of the republican periods, had from the same cause almost entirely fallen into disuse.

The cause was the low state of credit.

The social state itself, so far as it depended upon that exchange of labour and its products which is impossible without the use of money, was upon the point of dissolution, when Columbus of- fered to the Crown of Castile his project for approaching the rich countries of the Orient by sailing westward.

Then we can pick it up with Columbus arrival in the western hemisphere and the resultant human carnage born of this out-of-control metal-love that took place in this previous post.

But we can see here from this excerpt, how the fate and success of what Del Mar terms the "social state", in my view best facilitated via the institutions of our human civil government, was directly tied to the ability of the state to successfully claim monetary authority; and then take the action to "spend first and then tax" for public purpose, and in the process facilitate a robust monetary economy within the society.

This is the same situation we find ourselves in today here in the west.  The "social state", indeed in ways  modern civilization itself, is currently threatened by this same inability and continued failure of those currently occupying positions of authority within our government to successfully view, receive and implement this same monetary authority.

In my view our current cohort of leaders here in the west for some reason, repeatedly and manifestly repudiates any such human authority.

It remains to be seen how the west will fare at this time in what I believe will be looked at some day as an important historic juncture.

I'm pulling for 'team human'.