The Story of Robinson Crusoe

The Story of Robinson Crusoe

Text: Eiichi Morino Drawings: kokiriko Translation: Robert Mittelstaedt Š 2000 by Gesell Research Society Japan

"Robinson Crusoe, as is well known, built his house, from motives of health, on the south side of the mountain, whereas his crops grew on the damp but fruitful northern slopes. He was therefore obliged to carry his harvests over the mountain. To eliminate this labour he decided to construct a canal around the mountain. The time required for this enterprise which, to avoid silting, would have to be continued without interruption, he estimated at three years. He had therefore to lay in provisions for three years." (Gesell, A Story of Robinson Crusoe)

In Gesell's "A Story of Robinson Crusoe", Robinson and the stranger meet on quite natural terms. In the original story of "Robinson Crusoe" his character had been described as cautious and thoughtful. Here is a subtle difference.

For the time being the young stranger is called "Mensana" derived from the Latin “mens sana� which means something like "healthy mind". What in particular might this name hint at? Please, just continue reading!

A thought flashes up in Robinson's mind: if he lends out his provisions he might collect interest and live the cosy life of a pensioner.

Mensana refuses to pay interest for the borrowed provisions (Robinson's capital). Robinson, however, thinks it quite natural to demand interest. Who of the two is right? Mensana says that Robinson would gain anyway, even when he does not receive interest. How come?

Mensana shows his good will here. In the isolation of a lonely island the latecomer doesn't have to pour eternal gratitude on the first person on the island.

If Robinson wouldn't lend out his clothing it would soon rot and not be usable anymore. But if he lends it out, he wouldn't be charged with the expenses to preserve the value of his clothes at the present level. This is the calculation that is being made up here.

"This obvious fact has been overlooked by every writer upon interest up to the present day, even byProudhon." (Gesell, A Story of Robinson Crusoe)

Robinson realizes here that his stored capital would lose its value in the course of time. The capital is exposed to natural threats.

Here Robinson recognizes, that he is gaining even if he lends out his capital without taking interest.

Robinson and Mensana have changed their points of view. Robinson goes even so far as to offer Mensana a sack of grain. But the shipwrecked Mensana says: "I shall not add anything and I shall not subtract anything."

Or in the words of Gesell: "I must decline your offer, for it would mean interest - not indeed positive, but negative interest. The receiver, not the giver of the loan, would be a capitalist, and my religion does not permit usury; even negative interest is forbidden..." (Gesell, A Story of Robinson Crusoe) He had learned this principle once and therefore he sees the balance in performing work.

In the beginning Robinson wanted to demand interest, but his intention failed. Now he even has a feeling of gratitude, when he lends his provisions out without taking interest. How come?

Robinson has been living on the island for thirty years and his thinking is still dominated by the teaching of Marx. These are the words of Marx: "The change of value of money that converts it into capital cannot be derived from the money itself, since money in its function of medium of payment does no more than pay the price of the commodity it purchases, and, as hard cash it is value petrified, never varying. Just as little can the change occur in the second act of circulation, the re-sale of the commodity. [For in both cases] equivalents are exchanged, and the commodity is paid for at its full value. We are therefore forced to the conclusion that the change originates in the use-value of the commodity, after its purchase and before its sale." (Marx, Capital I. VI).

According to Marx goods can only poorly fulfil the role of money. It may be added that according to the theoretical opinion of many economists representing the dominating theory, money is a medium which fulfils the role of a means of exchange. If that is so, which of the two, goods or money, are needed more in the world? As a matter of fact, besides being a means ofexchange, money plays yet another role. In today’s reality Marx' view of money as a means of exchange can only be understood as a fairy tale. But this fairy tale has to be realized in reality. It is actually the money itself which has the power to impose interest. Marx has not understood that the interest does not arise during the production process, and since he had not solved the question he got himself tangled up in contradictions. If the trade, which merchants are performing by their various purchases and sales, is equivalent, then, he believed, the secret must lie hidden in the purchases and sales of the merchants. But here is being shown in a practical example, that this is a mistake.

This complaint of Robinson has been added to the line of the story. This part is not found in Gesell's original text. It may be an example of how a person being made to act for his self-interest even expects a reward from others.

"If there were a monetary system on this island and I, as a shipwrecked traveller needed a loan, I should have to apply to a money-lender for money to buy the things which you have just lent me without interest. But a moneylender has not to worry about rats moths, rust and roof-repairing, so I could not have taken up the position towards him that I have taken up towards you. The loss inseparable from the ownership of goods.. is born, not by money-lenders, but by those who have to store the goods. The moneylender is free from such cares and is unmoved by the ingenious arguments that found the joints in your armour." (Gesell, A Story of Robinson Crusoe

"You did not nail up your chest of buckskins when I refused to pay interest; the nature of your capital made you willing to continue the negotiations. Not so the money-capitalist; he would bang the door of his strong room before my face if I announced that I would pay no interest. Yet I do not need the money itself, I need it only to buy buckskins." (Gesell, A Story of Robinson Crusoe). Even in the course of time money doesn't lose its worth, the natural threats do not concern money and the money-owner has the power to collect interest. This is why Gesell makes Robinson say in the end: "For Marx money is simply a medium of exchange, but money does more, it seems, than ›merely pay the price of the commodities it purchases‚, as Marx asserted. When the borrower refuses to pay interest, the banker can close the door of his safe without experiencing any of the cares wich beset the owner of goods - that is the root of the matter." (Gesell, A Story of Robinson Crusoe)

The real cause of interest lies in money itself. It is in the nature of money that a money-owner receives interest. Even when money gets stored, it doesn't lose its value. A merchant for instance thinks of buying goods.

When a merchant buys goods, he has accumulated some money for that purpose. The money-owner can always make his trade-partner wait. But since the owner of goods has to accept a loss in the value of his goods, he is under pressure. The merchant who does not have to fear a loss in value of his money, can take advantage in a bargain from this superiority of money.

The purchased goods are expected to earn a gain when sold. If a merchant borrows money from another money-owner in order to buy goods, his trade profits will be the remains after subtracting the costs for borrowing (interest) the capital.

In Gesell's original story Robinson has finally gained insight.

All worldly things besides very few exceptions have the feature to lose their value. Only money escapes the law of time. But money, too, like all other things has to be subjected to losing its value. In comparison to all other things money has royal rights. Since money has such a power, it is very sought-after by people. Money enables any exchange and thus it acquired unlimited liquidity. It became a mechanism which gives the advantage to those who provide the money. The theory of Marx cannot be put to practice, because in his theory money is just a means of exchange, he was not able to solve the secret of interest. But when we today see money as it really is, we understand the necessity to reform our monetary system. Contrary to Marx we have to make money a real means of exchange, which has this function only.

This »manga« (Japaese word for "comic strip") has been based on “A Story of Robinson Crusoe which Gesell wrote in 1920.

Silvio Gesell (1862-1930) was a businessman who worried about the misery that was caused by economic crises and in which wide circles got caught. He recognized the dysfunctional flaw in the monetary system itself and wrote a number of books on the topic.

"A Story of Robinson Crusoe" is one of his better stories to make his teaching come alive.

When in our existing monetary system somebody lends out money he will collect interest. Somebody who borrows money has to pay interest.

No one has ever questioned this system. But is it really so natural? What is this naturalness based upon?