INTRODUCTION
The nineteenth century economist Jevons recalled, Mademoiselle Zelie, a singer of the Theatre Lyrique at Paris, gave a concert in the Society Islands where there was no money at the time. In exchange for five songs, she was given a third of the receipts from the audience.
The audience paid with livestock, fruits and vegetables. Zelie’s third consisted of three pigs, twenty-three turkeys, forty-four chickens, five thousand coconuts, and considerable quantities of bananas, lemons and oranges. This was considered more than adequate for five songs.
In the Society Islands, however, Mademoiselle Zelie could not consume much of the receipts herself, and it became necessary to feed the pigs and poultry with the fruit and vegetables. The inconvenience and waste caused by the absence of money is clear. The goods, easily sold for money, became an encumbrance. Not only did she lose financially, but so did the people of Society Islands. However, the greatest loss was in social efficiency. Societies desiring the services of fine singers cannot get them on such terms, and this applies to engineers, architects, inventors, doctors and all other kinds of services.
PRESENT TEACHING OF THE ORIGINS OF MONEY
“…no theory of money can be refuted by demonstration of the falsity of any assertion of its author concerning the primitive history of money, and no theory can be proven to be correct by a demonstration of such assertions by the author.” (Joseph Schumpeter)
The origins of money depend on our definition of money which in turn rests on arguments about where it began. As a consequence, there is widespread misunderstanding among Christians of where money originated. These range from God gave money to its creation by the Government.
Some think that the first thing God gave to Adam was a job to tend the Garden of Eden. He must have paid him some kind of wages because God is not a hard taskmaster and would not treat him as a slave. Whatever He paid Adam for his labour would be money. Money then originated as a need by God to pay Adam’s wages.
Others, making no distinction between money and wealth, think that God opens up the windows of heaven and pours out blessings. They base their opinions on the following verses:
But thou shalt remember the LORD thy God: for it is he that giveth thee power to get wealth, that he may establish his covenant which he sware unto thy fathers, as it is this day. Deuteronomy 8:18.
Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the LORD of hosts, if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it. Malachi 3:10.
Such thinking makes it acceptable for Christians to pursue money and possessions as the ruling passion of their lives. This now pervades all classes and has been around for many years, with those who are without money having exaggerated ideas of its value and what it will do for them and those who have equally mistaken about its nature and functions.
LIMITATIONS OF THE CURRENT UNDERSTANDING
There can be no proper understanding of money without a knowledge of its origins. The present understanding of the origins of money is plagued with many misconceptions and downright fallacies. Most of it has to do with the attempt to give it a Biblical origin either in the Garden of Eden or later at the formation of the nation of Israel. Although the Bible traces the history and origins of the nation of Israel, it cannot be properly classified as a book of history. Its use as a history book cannot be justified. In the Bible, Israel had no known currency, but made use of what is termed commodity money, mostly silver being the commodity.
With respect of money and possessions, there is no distinction made between the Kingdom of God, the Church and the World. This problem is universal, from Alcorn to Zacharias. But Christians belong to the Kingdom of God which “is not meat and drink, but righteousness, and peace and joy in the Holy Ghost.” (Romans 14:17).
Christians live in the world system where there is a necessity for eating and drinking although we are not of the world. Presently there is no distinction made between the physical needs of the body and the spiritual needs of the soul. Animals, also eat, drink and need shelter, but they have not developed money, nor accumulate possessions (excepting food) and it would be erroneous to make the case that man having done so can now be defined by money. We must look for the origins of money in the economic history of the kingdoms of this world not in the Kingdom of God. The purpose for the development of money is to buy things in the World System in which we live and are a part. Even if we put off spending our money, we are still planning on doing so later. “We do not live to eat and make money. We eat and make money to be able to live. That is what life is for.” (George Mallory). The history of money shows it to be an accidental phenomenon rather than an essential to human society.
A BETTER CHRISTIAN UNDERSTANDING OF MONEY
The mention of money in the Bible, is always incidental, not doctrinal.
Certain incidents in which money was used was recorded. For example, Abraham bought the cave of Machpelah, Joseph was sold for 30 pieces of silver. We know from the Bible that silver was used as currency in Canaan during this period (Genesis 23:16), however, it is quite clear, from the contexts, these incidents are not the origin of money.
“Biblical economics” must be included into the category of “incidental” to the Bible records. The use of the Bible as a history book is not justified.
Although the Bible traces the history and origins of the nation of Israel, it can be concluded, and without much debate, it is not a book of history nor a book of accounting and finance. Thus, Judas’ betrayal of Jesus is significant as a fulfilment of prophecy, but his receipt of 30 pieces of silver is merely incidental and instructive but not doctrinal. Israel was given no currency, instead they used whatever was being used in the land of Canaan, usually silver, as commodity money.
Money is the currency of this “present evil world” only.
We must also recognize both, the World and the Kingdom of God as systems present in the Word of God and existing today. The world’s financial and economic system is based on money and is unstable, ever-changing, and left to chance. This is the place to conduct our financial business.
Also present is the Church (both as an organization and an assembly of believers). It is for prayer, praise and worship, not for doing financial business. John 2:16 says, “And said to them that sold doves, take these things hence; make not My Father’s house a house of merchandize.” If the church becomes confused with a profit-generating business, especially a dishonest one (Matthew 21:13 … It is written, My house shall be called the house of prayer; but ye have made it a den of thieves.), then it has careened off course.
The currency of the Church and the Kingdom of God is faith in Jesus.
God’s Kingdom, on the other hand is based on faith in Jesus Christ who is unchanging, the same yesterday today and forever. Here, the thief can’t steal and moth and rust can’t corrupt.
It is a house of prayer (Luke 19:46), and it is the pillar and support of the truth (1 Timothy 3:15). 2 Corinthians 2:17 says, “For we are not like many, peddling the word of God, but as from sincerity, but as from God, we speak in Christ in the sight of God.”
In order for Christian ministers to take the mind set of first century stewards trying to get gain for their Master, from potential Church attenders, they have to compromise the gospel. However, freely we have received the gospel, and freely we should give it (Matt 10:8).
It is notable that the animals sold in the temple were used as sin offerings but sadly, they have now been replaced by money whose function is that of a medium of exchange and a measure of value. The parallel drawn is clear, money can be used as a sin offering.
Money in the Garden of Eden?
God did not give Adam any money in the garden of Eden, neither is there a record in Genesis of God creating money on any of the days of Creation. He did not give the nation Israel a currency; it seems Moses may have instituted the use of silver (see below). We can conclude that GOD DID NOT INVENT MONEY.
In the example above, the Society Island had no money. This may shock many Christians who have always been taught that GOD CREATED EVERYTHING in the universe. God certainly did not make something as imperfect and would fail (Genesis 47:15, 16) as money. Money was invented by man, blundering man, unintentional and without the inspiration of GOD.
Two ways in which we may investigate the origins of money:
1. We may start with the various types and substances which have been adopted in various times and in various countries as substitutes for money. In tracing the history in this manner we can arrive at the nature of money as it is used today.Mr. W. Stanley Jevons, in his “Money and the Mechanism of Exchange,” has under the head of “Early History of Money” ten pages with facts. While this is great history, they tell little about the origins of true money and a lot about the history of commodities substituted for money.
The tracing of the origins of money using this method, involves regarding as money various non-monetary commodities which were used, not as money, but as aids to trade, substituting for money. How easy various non-monetary commodities, as oxen, tobacco, gold, silver, etc, have been used as a substitute for money, or how primitive men made money of pretty shells or beads, is hardly pertinent to the history of ‘true money’, as we now understand. I’ll leave the reader to decide whether this is a satisfactory approach.
2. We may ignore the various substitutes for Money over its history and begin with money’s origin in a common necessity co-incidental with the practice of commerce. An exchange of goods and services evolved by almost every society of men, beginning with barter but soon developing the necessity for and the use of money. Money is the application of certain functions found necessary in the world of trade and commerce. I will give here the development of money from inconveniences in the system of barter.
No Money or Barter
There was a time when there was no barter or exchange. Of course there is no one alive to remember. A time when “God loveth a cheerful giver” was reality. Or perhaps it was a time when God was the only Giver. God wanted man also to be a giver, “… freely ye have received, freely give.” Matthew 10:8. “Give, and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give into your bosom…” Luke 6:38. But the sinful nature was disobedient, man wanted to trade or exchange. It is the same today, God wants the Gospel of Jesus Christ to be preached freely, but men has set up commercial systems for its distribution.
In the earliest of times, each man was self-sufficient; he had all the necessary means of supporting himself, within himself. He was a hunter/gatherer and built his own home. He was independent of other men. This can be seen in Cain and Abel; and as late as Abraham and Lot. In the beginning God wanted men to GIVE and so He made the Garden of Eden and gave it to Adam. There is no evidence that He gave Adam a job and paid wages, but there is abundant suggestion that He gave Eden to him freely because He desired the man to follow His example and be a giver (James 1:17).
Barter, Covetousness and Mammon
The beginning of exchange was in gifts, a corrupted form of giving, based on covetousness or desire for other people’s “stuff”. How can you get someone’s stuff if there is no exchanging? You can steal it! Neighboring tribes would invade each other and carry off goods and women.
A peaceful way was to make a present to others hoping to get one in return. In the course of time, the custom became to demand, not only a present in return, but one perceived to be of equal value. Our modern customs of giving gifts at Christmas, birthdays, weddings and other special occasions are legacies of this primitive form of exchange.
I believe this to be the first instance where Mammon, the god of money and wealth, injected himself into the business affairs of men. He put it into the minds of men that their gift was more valuable than that of the other person.
We exchange because we covet.
The exchange of one commodity for another when neither commodity is designated money is called barter. Because of COVETOUSNESS the system of Barter was invented. Men began to covet the goods of their fellowmen. A single barter transaction involved the exchange of one kind of commodity for another. Men did not exchange the same type of commodity, but unlike commodities and they did not exchange their stuff for things they did not want, but for things belonging to their neighbors which they desired or coveted.
A Barter also involved at least two persons with mutual desires for each other’s goods or services. An exchange required an agreement of two minds with reciprocal desires; and since the objective is to satisfy these desires, the result of an exchange was mutual satisfaction. This desiring of others’ possessions is called covetousness in the 10th commandment.
I believe that this is another point where Mammon, the god of wealth, involved himself in the commerce of mankind. In the tenth commandment we read, Thou shalt not covet thy neighbor’s house, thou shalt not covet thy neighbor’s wife, nor his manservant, nor his maidservant, nor his ox, nor his ass, nor anything that is thy neighbor’s. (Exodus 20:17). The Hebrew word translated as covet, chamad, means desire and is translated as desire in Genesis 3:6, where Eve coveted the forbidden fruit. So that exchange and trade takes place because of covetousness.
For centuries of the world’s history, barter became the usual method of exchange. At the present time it is still used in remote, backward, parts of the world. Sometimes it is practiced in the rural, agricultural and farming areas of developing and developed countries. Farmers exchange commodities like eggs and butter for processed groceries or give the local miller some grain in exchange for his services.
Did barter exist in history?
There are historians who think there was never a system of barter and money always existed. But the Bible records an instance:
Barter was used in Solomon’s Temple.
In 1Kings 5:1-11, when Solomon set about the building of the Temple he wanted timber of a kind which was not found in Israel but was found in Tyre. So he sent to Hiram, King of Tyre, and told him of this difficulty.
Hiram rejoiced greatly, for his land was rich in timber and poor in corn and oil. He therefore sent to Solomon saying: ‘ I will do all thy desire concerning timber of cedar, and concerning timber of fir. My servants shall bring them down from Lebanon into the sea: and I will convey them by sea in floats unto the place that thou shalt appoint me, and will cause them to be discharged there, and thou shalt receive them: and thou shalt accomplish my desire, in giving food for my household. So Hiram gave Solomon cedar trees and fir trees according to all his desire. And Solomon gave Hiram twenty thousand measures of wheat for food to his household, and twenty measures of pure oil: Thus gave Solomon to Hiram year by year.’
Each of the kings was able to supply the other with what he needed, and that was enough to make an exchange possible. It must have been a fair exchange, since each of them was satisfied.
In times of depression and recession, when the monetary system is malfunctioning, bartering, again becomes important. For example, in the world economic depression beginning in 1929, barter played an important role in international trade for the USA, one instance which is the exchange in 1931 by the US Farm Board of 25,000,000 bushels of wheat for 1,050,000 bags of coffee with Brazil.
At first men bartered their goods and services in a physical market place in a town or village. The buyers and sellers met on designated days to exchange their goods and services. There are yet still uncivilized people, both in Africa and South America, who have no notion of money and barter is their means of trade.
Barter was simple, and the need for a medium of exchange was not pressing. People took the time to bargain over their exchanges. Doubtless they quarrelled frequently, and it is possible that often each party to the bargain felt later on that the other person had got the better of him. Yet, for a long time this method of dealing seemed good enough. It appeared simple enough, although in reality it was cumbersome. Above all, it doubtless never occurred to any one for a long time that there could possibly be any other way to accomplish the desired purpose.
Barter Problems
There is no doubt that money makes a great contribution to present day trade, however, it must not be forgotten that commerce existed long before money was known. It is an error to suppose that in barter, there was not the possibility of satisfactory exchanges. The fact is exchange took place and on a large scale and this was evidence of satisfaction. If the people were not satisfied by bartering, there would have been no exchanges. However, the system of Barter was cumbersome with many inconveniences. It is unnecessary to show all the inconveniences that naturally arose in striving to carry on trade without the use of money. Countless examples are given in the various works treating of this subject. I will describe two of the main problems:
1. For Barter to work at least two individuals must experience a double coincidence of wants. This means that if you and I are to exchange goods, I must have something you want, you have something I want and both of us must want to exchange. If a pig farmer wants a piece of cloth, it is not enough to find a weaver; he must find a weaver who wants pork. If the weavers in the town or marketplace do not want pork, the farmer could not make the trade he desired. This is just a simple example in a small village, however, the double-coincidence problem becomes more severe in more developed economies with large numbers of goods and services, many of which are consumed by small parts of the population. This problem, at first, was solved by using a commodity as a medium of exchange, one of the functions of money.
2. Another problem was the lack of a credible measure of value for all goods and services. Before two items can be exchanged they must be PERCEIVED to be EQUAL in value. This problem did not exist if the products to be exchanged were perceived to be equal in value. The transaction simply took place and that would be an end of the exchange. However, the majority of the goods exchanged were PERCEIVED to be of UNEQUAL value, and when such transactions occurred there would be a remainder of product or service due from the one to the other person. This would constitute a DEBT; the person who had received the less amount of product or service had to demand the balance due at some future time. At the same time a corresponding LIABILITY would be created in the other person, who had received the greater amount of goods or service, to pay the balance due when required. This problem was solved by introducing other functions of money, as a measure of value, and also as a unit of account. Notice again, this aspect of money is as a representative of DEBT and LIABILITY with one man’s money being another man’s debt or as more accurately shown in the Blog “What is Money?”, everyone’s debt. Money represents debt and gain, through which the idea of profit came into being.
Now, among all traders the following result is inevitably; you want an amount of a product from others, while those others do not want this same amount or nothing at all from you. It is easy to imagine the inconveniences that arose when people don’t get what they want, unless the persons who could supply these wants, wanted something equal in value in return at the same time. Notice too, every time these transactions occur, debts and liabilities were created. The Word of God says that we should “owe no man” anything and even the prosperity preachers are against debt.
Substitutes for Money?
In time all traders of goods and services in a country or geographical area agreed upon a commodity to represent the amount of Debt or Liability. This item is called Commodity Money by economists.
When an unequal exchange took place between two persons, so leaving a balance due from one to the other; the person who had received the greater amount of product or service gave a quantity of this commodity money to make up the balance; so that the person who had received the lesser amount of product or service might obtain the remainder from someone else using the commodity money.
Suppose that a pork farmer wants bread, but the baker does not want an equivalent amount of pork or does not require pork. The pork farmer nevertheless, buys the bread from the baker, and gives him in exchange as much pork as he wants, and makes up the balance by giving him an amount of this commodity money, equivalent to the deficiency; and if the baker wants no pork at all, he gives him the full equivalent of the bread in the commodity money.
The baker wants, perhaps, clothing, but not pork. Having received the commodity money from the pork farmer, he goes to the weaver, and obtains cloth from him to the equivalent of the bread he has exchanged. Hence, the satisfaction which was due to the baker from the pork farmer is paid by the weaver. Notice, none of the products exchanged is the commodity money.
Commodity money also could be used as one of the items being exchanged. Suppose the baker wanted beer from the brewer who did not require bread. The baker could give the whole price of the beer in commodity money. The brewer would accept the commodity money because he knows that it could be easily exchanged for anything he wanted in the future (medium of exchange).
This Commodity money in the above examples performs some of the functions of money, and these circumstances show its fundamental nature. Its functions are to measure the value of Debts which arise from unequal exchanges in value (measure of value), to enable persons who have rendered any sort of services to others, and have received no equivalent from them (medium of exchange), to preserve a record of these services (unit of account), and of their rights (store of value) to obtain an equivalent satisfaction from someone else, when they require it. The nature of Money seen here: It is a Right or Title to demand some product or service from someone else in the future.
Many items were used as commodity money throughout history. If they worked well it was used for a long time, if it didn’t people moved to something else. Whatever commodity was selected had to be accepted by all in the community. In Virginia 1618, acceptance was enforced by a fiat of the Governor making a pound of tobacco legal tender equal to three shillings (British money). Subsequently women imported as wives for the settlers were disposed of at 100 pounds of tobacco each and later at 150 pounds. As late as 1732, Maryland made corn and tobacco legal tender. Alpine villages in Switzerland have used eggs as we use money, and Newfoundland has used dried cod fish. In many countries, remote from civilization, pieces of cotton cloth have taken the place of money. But in all cases in which anything of this kind has been done, the rule has been acceptance of some convenient article or articles to be used as we use money. In this manner, various non-monetary items were used, not as money, but as aids to trade, somewhat substituting for money.
Money and the Bible
Recall the simple definition of money as anything that is accepted as payment for material goods and services and discharging of debts. Money therefore can be anything. This holds true also for the Biblical period.
In considering the money of the Bible it is important to draw a distinction between un-coined and coined money, two terms that are self-explanatory. With a few exceptions, the money of the Old Testament was un-coined. This means that it was not necessarily in a recognized special shape or with an inscription, however, they did have a special weight and value as weighed pieces of silver were in the early times of the Bible.
Money is first mentioned in the Bible in the enslavement of human beings,
And he that is eight days old shall be circumcised among you, every man child in your generations, he that is born in the house, or bought with money of any stranger, which is not of thy seed. Genesis 17:12.
Whether this predates the book of Job where money is also mentioned is a matter of debate.
In the Book of Job (42:11) we have what is considered the earliest reference in the Bible to currency, each of his relatives, when visiting gave him a piece of money (or silver) and an ear-ring of gold. The word used for piece of money in this passage is kesitah. This word occurs three times in the Old Testament; in the above passage in Job, in the reference to the purchase of a piece of land by Jacob at Shechem for one hundred pieces (Gen. 33:19), and in Joshua 24:32, where the same piece of land is again mentioned. It literally means “weighed out” and refers to an ingot of rough silver, broken off, but having a known and recognized value by weight.
The earring of gold gives a further allusion to the use of pieces of metal of known and recognized weight, either for purchasing or, until so required, as ornaments. The Septuagint version of the Bible more accurately translates this phrase a tetradraclim of un-coined gold. As all of Job’s relatives gave him the same gift, and in conjunction with a piece of silver, that the earring was representative of certain value, and it is equally evident that Job used his gifts in the purchase of cattle, as we read in the next verse that he was possessed of thousands of animals.
The Hebrew word translated as money is keseph which literally means silver. Keseph is used 403 times in the Old Testament and translated as money 115 times, and as silver 288 times. This tells us that silver was used as commodity money in the Old Testament times by the Israelites from as early as Abraham. The verse tells us that money was first used by the Israelites in trafficking in human beings or slaves. That this was the practice and it appears to be accurate, for they were shepherds and did not need to pay for food.
The next use of “money” is when Abraham bought the field with the cave of Machpelah as a cemetery to bury his wife Sarah, himself and his descendants,
And Ephron answered Abraham, saying unto him, My lord, hearken unto me: the land is worth four hundred shekels of silver; what is that betwixt me and thee? bury therefore thy dead. And Abraham hearkened unto Ephron; and Abraham weighed to Ephron the silver, which he had named in the audience of the sons of Heth, four hundred shekels of silver, current money with the merchant.
Genesis 23:14-16
It should be noted that money is added to the text in verse 16 of the KJV. We are told that silver was the currency used by the Canaanites. That it had to be weighed out indicates that it was not minted into coins. How this field became the property of Ephron we do not know. How it was valued at 400 shekels of silver is not stated. It appears that the Patriarchs who lived in the land of Canaan followed the Canaanites in using silver as money.
“Money” in the New Testament
The term “Money” is used 23 times in the English New Testament and reference to money is made a further 16 times. The money at this time is said to belong to Caesar who had issued it for tax purposes. It is translated from a number of different Greek words, some of which are:
1. didrachmon: a double drachma. It was a Greek coin up to 2002 when it was replaced by the Euro currency. It is translated as “tribute” in Matthew 17:24.
2. stater: a coin used in parts of Greece. It appears just the once in Matthew 17:27 and is translated “piece of money.”
3. nomisma: is an ancient Greek word for money. It refers to currency or coins. It appears once in Matt 22:19 and is translated money.
These three words above is found only in Matthew’s gospel. He was a tax collector for the Romans and would have been very acquainted with the currency used in the first century in the Middle Eastern territories of the Roman Empire.
4. argurion: is the Greek word for “piece of silver”. It appears 20 times and is sometimes translated money, pieces of silver, silver pieces and silver. It was unmarked and un-coined and used mostly by the Israelites.
CONCLUSION
Money is somewhat of an accidental development by men to aid in trading of goods and services. It does not come from God and is not an essential aspect of our relationship with God.