Monday, October 1, 2012

Pre-1900 Utopian Visions of the `Cashless Society'

From the Munich Personal Research Papers in Economics Archive:
Matthew  Hollow  is  a  Research  Associate  on  the  Leverhulme-­‐funded  “Tipping  Points”  Project   in  the  Institute  of  Hazard,  Risk  and  Resilience  at  Durham  University.  His  area  of  expertise  lies   in  Nineteenth-­‐  and  Twentieth-­‐Century  British  socio-­‐economic  history.  At  present  he  is   currently  researching  moments  of  significant  transition  and  upheaval  in  the  British  financial   system  so  as  to  understand  the  causes  and  implications  of  such  changes  and  to  work  out   how  to  better  deal  with  the  effects  of  any  such  changes  in  the  future.   
 Abstract   
This  article  looks  in  more  depth  at  the  different  ways  in  which  ideas  about  cashless  societies   were  articulated  and  explored  in  pre-­‐1900  utopian  literature.  Taking  examples  from  the   works  of  key  writers  such  as  Thomas  More,  Robert  Owen,  William  Morris  and  Edward   Bellamy,  it  discusses  the  different  ways  in  which  the  problems  associated  with  conventional   notes-­‐and-­‐coins  monetary  systems  were  tackled  as  well  as  looking  at  the  proposals  for   alternative  payment  systems  to  take  their  place.  Ultimately,  what  it  shows  is  that  although   the  desire  to  dispense  with  cash  and  find  a  more  efficient  and  less-­‐exploitable  payment   system  is  certainly  nothing  new,  the  practical  problems  associated  with  actually   implementing  such  a  system  remain  hugely  challenging.

This  paper  was  written  for  the  Cashless  Society  Project,  an  interdisciplinary  and international   effort  to  add  some  historical  and  analytical  perspectives  to  discussions about  the  future  of   money,  banking  and  payments.  For  more  information,  see   http://cashlesssociety.wordpress.com/.

Historically,   one   of   the   most   prominent   mediums   through   which   new   ideas   about  monetary   systems   have   been   presented   and   debated   is   the   utopian   treatise.   That  this   was   the   case   is,   in  many  ways,  not  surprising  since  one  of  the  core  attractions of  utopias  is  that  they  offer  —   to  both  readers  and  writers  —  discursive  spaces,  free from  the  clutter  and  constraints  of  the   present,  within  which  alternate  (improved)  social and  political  systems  can  be  laid  out  and   analysed   in   their   totality.

 As   such,   they   provided   a   means   through   which   thinkers   of   all   political   persuasions   could   articulate   their   thoughts   and   ideas   as   to   how   to   overcome   the various  practical  and  ethical  problems  associated  with  money.  Although  a  great  many  of the forecasts  for  the  future  of  money  that  were  put  forwards  in  this  way  had  distinctly socialist   undertones   and   were   closely   tied-­‐in   with   the   wider   goals   of   alleviating   poverty   and   social   dislocation,   this   did   not   mean   that   the   practical   problems   involved   in   actually   establishing   alternate  monetary  systems  were  not considered  in-­‐depth.

Indeed,  the  issue  of  whether  or   not   there   was   a   better   alternative   to   conventional   cash   (or,   indeed,   if   society   could   operate   without   it)   was   one   that   attracted   a   great   deal   of   attention   and   continued   to   vex   utopian   thinkers  right  up  until  the  twenty  first  century.

Like   with   so   many   other   areas   of   utopian   thought,   Thomas   More’s   (1478–1535)  epochal   novel   Utopia   (1516)   laid   the   groundwork   for   many   of   the   later   debates   surrounding   the   issue   of   money.   Above   all   else,   More   sought   to   show   how   western   society’s   infatuation   with,  and  dependence  upon,  money  as  a  carrier  of  value  actually  served  as  a  hindrance  to   what  he  saw  as  the  overarching  goal  of  human  civilization:  namely,  peace  and  prosperity.

In   particular,  More  worried  about  the  effects  that  the  placing  of  such  high  value  in monetary   forms   had   upon   societal   relations,   pointing   out   that   ‘frauds,   thefts,   robberies,   quarrels,   tumults,   contentions,   seditions,   murders,   treacheries,   and   witchcrafts’   all   tended   to   originate  from  disputes  over  money.

More  also  found  his  contemporaries  infatuation  with   gold   and   silver   intolerable   and   delights   in   describing   how   the   inhabitants   of   the   fictional   Island   of   Utopia   hold   both   metals   in   so   little   esteem,   using   them   either   for   the   ‘humblest   items  of domestic  equipment’  (including  chamber-­‐pots!)  or  as  symbolic  markers  of  shame  to   be  worn  by  those  who  have  committed  crimes....
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HT: Bloomberg Echoes