/tag/free%20market

3 quotes tagged 'free market'

Author: Robert Shea and Robert Anton Wilson

Publisher: Fine Communications (1998)

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Flaxscrip was first introduced into Discordian groups by the mysterious Malaclypse the Younger, K.S.C., in 1968. Hempscrip followed the year after, issued by Dr. Mordecai Malignatus, K.N.S. (In the novel, taking one of our few liberties with historical truth, we move these coinages backward in time and attribute hempscrip to the Justified Ancients of Mummu.) The idea behind flaxscrip, of course, is as old as history; there was private money long before there was government money. The first revolutionary (or reformist) use of this idea, as a check against galloping usury and high interest rates, was the foundation of 'Banks of Piety' by the Dominican order of the Catholic Church in the late middle ages. (See Tawney, Religion and the Rise of Capitalism.) The Dominicans, having discovered that preaching against usury did not deter the usurer, founded their own banks and provided loans without interest; this 'ethical competition' (as Josiah Warren later called it) drove the commercial banks out of the areas where the Dominicans practiced it. Similar private currency, loaned at a low rate of interest (but not at no interest), was provided by Scots banks until the British government, acting on behalf of the monopoly of the Bank of England, stopped this exercise of free enterprise. (See Muellen, Free Banking.) The same idea was tried successfully in the American colonies before the Revolution, and again was suppressed by the British government, which some heretical historians regard as a more direct cause of the American Revolution than the taxes mentioned in most schoolbooks. (See Ezra Pound, Impact, and additional sources cited therein.) During the nineteenth century many anarchists and individualists attempted to issue low-interest or no-interest private currencies. Mutual Banking, by Colonel William Greene, and True Civilization, by Josiah Warren, are records of two such attempts, by their instigators. Lysander Spooner, an anarchist who was also a constitutional lawyer, argued at length that Congress had no authority to suppress such private currencies (see his Our Financiers: Their Ignorance, Usurpations and Frauds). A general overview of such efforts at free enterprise, soon crushed by the Capitalist State, is given by James M. Martin in his Men Against the State, and by Rudolph Rocker in Pioneers of American Freedom (an ironic title, since his pioneers all lost their major battles). Lawrence Labadie, of Suffern, N.Y., has collected (but not yet published) records of 1,000 such experiments; one of the present authors, Robert Anton Wilson, unearthed in 1962 the tale of a no-interest currency, privately issued, in Yellow Springs, Ohio, during the 1930s depression. (This was an emergency measure by certain local businessmen, who did not fully appreciate the principle involved, and was abandoned as soon as the 'tight-money' squeeze ended and Roosevelt began flooding us all with Federal Reserve notes.) It is traditional among liberal historians to dismiss such endeavors as 'funny-money schemes.' They have never explained why government money is any less hilarious. (That used in the U.S. now, for instance, is actually worth 47 percent of its 'declared' face value). All money is funny, if you stop to think about it, but no private currency, competing on a free market, could ever be quite so comical (and tragic) as the notes now bearing the magic imprint of Uncle Sam—and backed only by his promise (or threat) that, come hell or high water, by God he'll make it good by taxing our descendants unto the infinite generation to pay the interest on it. The National Debt, so called, is of course, nothing else but the debt we owe the bankers who 'loaned' this money to Uncle after he kindly gave them the credit which enabled them to make this loan. Hempscrip or even acidscrip or peyotescrip could never be quite so clownish as this system, which only the Illuminati (if they really exist) could have dreamed up. The system has but one advantage: It makes bankers richer every year. Nobody else, from the industrial capitalist or 'captain of industry' to the coal-miner, profits from it in any way, and all pay the taxes, which become the interest payments, which make the bankers richer. If the Illuminati did not exist, it would be necessary to invent them—such a system can be explained in no other way, except by those cynics who hold that human stupidity is infinite. The idea behind hempscrip is more radical than the notion of private-enterprise currency per se. Hempscrip, as employed in the novel, depreciates; it is, thus, not merely a no-interest currency, but a negative-interest currency. The lender literally pays the borrower to take it away for a while. It was invented by German business-economist Silvio Gesell, and is described in his Natural Economic Order and in professor Irving Fisher's Stamp Script. Gresham's Law, like most of the 'laws' taught in State-supported public schools, is not quite true (at least, not in the form in which it is usually taught). 'Bad money drives out good' holds only in authoritarian societies, not in libertarian societies. (Gresham was clear-minded enough to state explicitly that he was only describing authoritarian societies; his formulation of his own 'Law' begins with the words 'If the king issueth two moneys . . . ,' thereby implying that the State must exist if the 'Law' is to operate.) In a libertarian society, good money will drive out the bad. This Utopian proposition—which the sane reader will regard with acute skepticism—has been seen to be sound by a rigorously logical demonstration, based on the axioms of economics, in The Cause of Business Depressions by Hugo Bilgrim and Edward Levy.* * Economists can 'prove' all sorts of things from axioms and few of them turn out to be true. Yes. We saved for a footnote the information that at least four empirical demonstrations of the reverse of Gresham's Law are on record. Three of them, employing small volunteer communities in frontier U.S.A. circa 1830-1860, are recorded in Josiah Warren's True Civilization. The fourth, employing contemporary college students in a psychology laboratory, is the subject of a recent Master's thesis by associate professor Don Werkheiser of Central State College, Wilberforce, Ohio.

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DEFINITIONS AND DISTINCTIONS FREE MARKET: That condition of society in which all economic transactions result from voluntary choice without coercion. THE STATE: That institution which interferes with the Free Market through the direct exercise of coercion or the granting of privileges (backed by coercion). TAX: That form of coercion or interference with the Free Market in which the State collects tribute (the tax), allowing it to hire armed forces to practice coercion in defense of privilege, and also to engage in such wars, adventures, experiments, 'reforms,' etc., as it pleases, not at its own cost, but at the cost of 'its' subjects. PRIVILEGE: From the Latin privi, private, and lege, law. An advantage granted by the State and protected by its powers of coercion. A law for private benefit. USURY: That form of privilege or interference with the Free Market in which one State-supported group monopolizes the coinage and thereby takes tribute (interest), direct or indirect, on all or most economic transactions. LANDLORDISM: That form of privilege or interference with the Free Market in which one State-supported group 'owns' the land and thereby takes tribute (rent) from those who live, work, or produce on the land. TARIFF: That form of privilege or interference with the Free Market in which commodities produced outside the State are not allowed to compete equally with those produced inside the State. CAPITALISM: That organization of society, incorporating elements of tax, usury, landlordism, and tariff, which thus denies the Free Market while pretending to exemplify it. Illuminatus! Trilogy Seite 357 von 470 CONSERVATISM: That school of capitalist philosophy which claims allegiance to the Free Market while actually supporting usury, landlordism, tariff, and sometimes taxation. LIBERALISM: That school of capitalist philosophy which attempts to correct the injustices of capitalism by adding new laws to the existing laws. Each time conservatives pass a law creating privilege, liberals pass another law modifying privilege, leading conservatives to pass a more subtle law recreating privilege, etc., until 'everything not forbidden is compulsory' and 'everything not compulsory is forbidden.' SOCIALISM: The attempted abolition of all privilege by restoring power entirely to the coercive agent behind privilege, the State, thereby converting capitalist oligarchy into Statist monopoly. Whitewashing a wall by painting it black. ANARCHISM: That organization of society in which the Free Market operates freely, without taxes, usury, landlordism, tariffs, or other forms of coercion or privilege. RIGHT ANARCHISTS predict that in the Free Market people would voluntarily choose to compete more often than to cooperate. LEFT ANARCHISTS predict that in the Free Market people would voluntarily choose to cooperate more often than to compete.

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Somehow the conversation got around to a new book by somebody named Mortimer Adler who had already written a hundred or so great books if I understood the drift. One banker type at the table was terribly keen on this Adler and especially on his latest great book. 'He says that we and the Communists share the same Great Tradition' (I could hear the caps by the way he pronounced the term) 'and we must join together against the one force that really does threaten civilization— anarchism!' There were several objections, in which Drake didn't take part (he just sat back, puffing his cigar and looking agreeable to everyone, but I could see boredom under the surface) and the banker tried to explain the Great Tradition, which was a bit over my head, and, judging by the expressions around the table, a bit over everybody else's head, too, when the hawk-faced dago spoke up suddenly. 'I can put the Great Tradition in one word,' he said calmly. 'Privilege.' Old Drake suddenly stopped looking agreeable-but-bored— he seemed both interested and amused. 'One seldom encounters such a refreshing freedom from euphemism,' he said, leaning forward. 'But perhaps I am reading too much into your remark, sir?' Hawk-face sipped at his champagne and patted his mouth with a napkin before answering. 'I think not,' he said at last. 'Privilege is defined in most dictionaries as a right or immunity giving special favors or benefits to those who hold it. Another meaning in Webster is 'not subject to the usual rules or penalties.' The invaluable thesaurus gives such synonyms as power, authority, birthright, franchise, patent, grant, favor and, I'm sad to say, pretension. Surely, we all know what privilege is in this club, don't we, gentlemen? Do I have to remind you of the Latin roots, privi, private, and lege, law, and point out in detail how we have created our Private Law over here, just as the Politburo have created their own private law in their own sphere of influence?' 'But that's not the Great Tradition,' the banker type said (later, I learned that he was actually a college professor; Drake was the only banker at that table). 'What Mr. Adler means by the Great Tradition—' 'What Mortimer means by the Great Tradition,' hawk-face interrupted rudely, 'is a set of myths and fables invented to legitimize or sugar-coat the institution of privilege. Correct me if I'm wrong,' he added more politely but with a sardonic grin. 'He means,' the true believer said, 'the undeniable axioms, the time-tested truths, the shared wisdom of the ages, the . . .' 'The myths and fables,' hawk-face contributed gently. 'The sacred, time-tested wisdom of the ages,' the other went on, becoming redundant. 'The basic bedrock of civil society, of civilization. And we do share that with the Communists. And it is just that common humanistic tradition that the young anarchists, on both sides of the Iron Curtain, are blaspheming, denying and trying to destroy. It has nothing to do with privilege at all.' 'Pardon me,' the dark man said. 'Are you a college professor?' 'Certainly. I'm head of the Political Science Department at Harvard!' 'Oh,' the dark man shrugged. 'I'm sorry for talking so bluntly before you. I thought I was entirely surrounded by men of business and finance.' The professor was just starting to look as if he spotted the implied insult in that formal apology when Drake interrupted. 'Quite so. No need to shock our paid idealists and turn them into vulgar realists overnight. At the same time, is it absolutely necessary to state what we all know in such a manner as to imply a rather hostile and outside viewpoint? Who are you and what is your trade, sir?' 'Hagbard Celine. Import-export. Gold and Appel Transfers here in New York. A few other small establishments in other ports.' As he spoke my image of piracy and Borgia stealth came back strongly. 'And we're not children here,' he added, 'so why should we avoid frank language?' The professor, taken aback a foot or so by this turn in the conversation, sat perplexed as Drake replied: 'So. Civilization is privilege— or Private Law, as you say so literally. And we all know where Private Law comes from, except the poor professor here— out of the barrel of a gun,' in the words of a gentleman whose bluntness you would appreciate. Is it your conclusion, then, that Adler is, for all his naivete, correct, and we have more in common with the Communist rulers than we have setting us at odds?' 'Let me illuminate you further,' Celine said— and the way he pronounced the verb made me jump. Drake's blue eyes flashed a bit, too, but that didn't surprise me: anybody as rich as IRS thought he was, would have to be On the Inside. 'Privilege implies exclusion from privilege, just as advantage implies disadvantage,' Celine went on. 'In the same mathematically reciprocal way, profit implies loss. If you and I exchange equal goods, that is trade: neither of us profits and neither of us loses. But if we exchange unequal goods, one of us profits and the other loses. Mathematically. Certainly. Now, such mathematically unequal exchanges will always occur because some traders will be shrewder than others. But in total freedom— in anarchy— such unequal exchanges will be sporadic and irregular. A phenomenon of unpredictable periodicity, mathematically speaking. Now look about you, professor— raise your Illuminatus! Trilogy Seite 315 von 470 nose from your great books and survey the actual world as it is— and you will not observe such unpredictable functions. You will observe, instead, a mathematically smooth function, a steady profit accruing to one group and an equally steady loss accumulating for all others. Why is this, professor? Because the system is not free or random, any mathematician would tell you a priori. Well, then, where is the determining function, the factor that controls the other variables? You have named it yourself, or Mr. Adler has: the Great Tradition. Privilege, I prefer to call it. When A meets B in the marketplace, they do not bargain as equals. A bargains from a position of privilege; hence, he always profits and B always loses. There is no more Free Market here than there is on the other side of the Iron Curtain. The privileges, or Private Laws— the rules of the game, as promulgated by the Politburo and the General Congress of the Communist Party on that side and by the U.S. government and the Federal Reserve Board on this side— are slightly different; that's all. And it is this that is threatened by anarchists, and by the repressed anarchist in each of us,' he concluded, strongly emphasizing the last clause, staring at Drake, not at the professor.