| This question <142|100> overall <96|98> YoungCeltic: <586|109>. graded A |
| Question 180: The difference between the Money form and the General equivalent form is small; nevertheless it has important implications. Elaborate. |
| [97] YoungCeltic: Money Form and General Equivalent Form. The small difference between the General Equivalent form and the Money form is the size of the commodity sample. The Money form has proven its monopoly position by being the general equivalent for the “world of commodities,” whereas the General Equivalent form lacks this distinction of being applicable to all commodities. |
| William Henry Furness III, an American anthropologist, gives a good example of the General Equivalent Form. On the Island of Stone their medium of exchange was a large, solid, thick, stone wheel called fei. These stone “coins” were made from limestone on an island some 400 miles distant. The stones represented the labor in fetching and fashioning. When the German Government assumed ownership of The Caroline Islands, many of the paths or highways were in bad condition, and the chiefs of the several districts were told that they must have them repaired and put in good order. The blocks of coral were, however, quite good enough for the bare feet of the natives; so many of the German commands remained unheeded. At last it was decided that a fine would be imposed on the disobedient natives. How would this be possible to fine a group using giant stones as the General Equivalent form? It was decided that a man would go through the disobedient districts and mark each fei with black paint. It worked like a charm; the people, thus dolefully impoverished, turned to and repaired the highways to such good effect that the roads now looked like park drives.(1) The particular use-value of fei is comparable to the example Marx uses of gold. Would this work for the “whole of commodities” of the world? Of course not, that is why fei is not the Money form for the “whole of commodities” of the world. |
| Currently, the dollar is the Money form. Evidence for this is that for the first time a debtor nation, the United States, has its debts denominated in its own currency. Other nations trust the decision making of the Federal Reserve enough to have, at least what seems to be, a monopoly on the “world of commodities.” |
| What stands behind the dollar? The American laborer stands behind the dollar. What stands behind the yen? The Japanese laborer stands behind the yen. The General Equivalent for the Japanese is the yen. The General Equivalent for the American is the dollar. Because the dollar is considered more stable, it is the Money form for international transactions. Would this mean that labor between an American individual and a Japanese individual is differentiated? Yes. Marx states that the “general equivalent becomes the undifferentiated form of human labor.(2)” If there are differentiated General Equivalents, then their respective subparts must be differentiated, thus concluding that human labor is differentiated. |
| (1) The Island of Stone Money, William Henry Furness III; quoted by Milton Friedman in Money Mischief: Episodes in Monetary History |
| (2) Hans' Annotations pg. 307 |
| Hans: It seems that your source prettifies and trivializes the behavior of the colonial power. Whenever the native population is described like immature children you should be suspicious. |
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