Wednesday, October 14, 2020

MoneyWisdom #494

 "Counterintuitive as it may seem, to receive money from the sovereign issuing center is to receive a burden, a token of obligation. Reflecting on various historical instances of taxation, Alfred Mitchell Innes observes:

Every time a coin or certificate is issued a solemn obligation is laid on the people of the country. A credit on the public treasury is opened, a public debt incurred. It is true that a coin does not purport to convey an obligation, there is no law which imposes an obligation, and the fact is not generally recognized. It is nevertheless the simple truth. A credit, it cannot be too often or too emphatically stated, is the right to 'satisfaction.' This right depends on no statute, but on common or customary law. It is inherent in the very nature of credit throughout the world.

The issuance of currency betrays the imposition of debt by a governing power. The burden is shared and passed around to all of the governed, who labor and exchange under the mark of the king. Recognition is given that the power center has rightful claim to determine the weights and measures for transaction, and tacit thanks and honor are rendered to the one whose image is on the circulating tokens. Like Gregory of Nyssa, Innes asserts that the right or justice on monetary obligation needs no external law or statute. It is justice unto itself. In this case, it is right and just that the one who oversees economy, the one whose image makes possible transaction and resource allocation, should be the ultimate destination of value that is returned through the praises of tribute, tithe and taxes."

Devin Singh Divine Currency (2018) p.182

quoting Alfred Mitchell Innes The Credit Theory of Money in The Bank Law Journal (1914) p160-161