See also: Gesell
Jean Silvio Gesell (born the March 17th 1862 with Saint-Vith today in Belgium, formerly in Germany - died the March 11th 1930 with Oranienburg-Eden in Germany) was commercial, a monetary theorist and the initiator of the frank currency.
In 1916, it publishes its major work the natural Economic order . It presents to it its frank theory of money which will return it celebrates, which consists of putting into circulation of a melting currency i.e. which is depreciated with fixed interval (every month or every two months…).
Its life
The mother of Silvio Gesell was Walloon, French-speaking, her father originating in Aachen. This last was receiving contributions of the canton of Malmedy which formed part of the German Empire then. Gesell was the seventh child of a phratry of nine brothers and sisters. After having attended the school with Saint-Vith, Gesell leaves to the college Malmedy. It must provide early for its subsistence, gives up consequently the studies and is engaged at the German imperial post office. The career of civil servant is not appropriate to him however. It decides to learn the occupation of tradesman near his older brothers with Berlin. Then it spends two years as a correspondent to Málaga (Spain). Unwillingly it goes back to Berlin, to make its military service. Then, he works as a commercial employee with Brunswick and Hamburg.
In 1887, it leaves for Buenos Aires (Argentine), where it settles on its own account and opens a subsidiary company of the business of Berlin. The important economic crises which weaken the country poke its reflection on the problems structural of capitalism. In 1891, it publishes its first work: Die Reformation of Münzwesens als Brücke zum sozialen Staat ( the Reform of the monetary mode, stage towards a social state ). After having transmitted in 1890 its business Argentinian to his/her brother, it turns over in Europe in 1892. After a short passage in Germany, it is established in Suisse and acquires a rural property there. Parallel to its agricultural activity it is devoted more still to economic studies and the writing. It founds in 1900 the review “the Land reform and monetarist” who does not have however success, it will cease appearing in 1903 following financial problems.
From 1907 to 1911 Gesell is again in Argentine. Then it turns over to Germany and chooses to be established in the community vegetarian of the Orchard Eden to Oranienburg. It created there, with Georg Blumenthal, the review “Der Physiokrat”, in reference to François Quesnay. In 1914 − with the beginning of the First World War − it will be victim of the censure.
Gesell leaves Germany in 1915, goes again in its property Suisse, then joined Germany after the collapse of the Empire in 1918. It remains initially with Munich where it takes share with the revolutionary events. The revolutionary government of the Republic of the police chiefs of Munich offers initially a seat in the Commission of Socialization and fact of him to him shortly after its police chief with finances. Its mandate lasts however only seven days. After the bloody end of the Republic of the police chiefs of Munich, Gesell is shown of high treason and is judged in front of a court of State of Munich, which ends up discharging it. The expenses of the lawsuit are with the load of the Treasury. Gesell leaves Munich and settles in 1919 with Rehbrücke close to Potsdam. In 1924, it turns over to Argentina. In 1927, it remains again in Eden/Oranienburg, where it succumbs the March 11th 1930 of a Pneumonie.
Research and observations
Whereas industrialization was in full rise in Europe at that time, the Spanish colonial power prevented an autonomous development of the Argentine. The Spanish government was interested by the money layers (from where l'" Argentine"), and not by with an autonomous development of agriculture, trade and industry. That would have forced the Spain with important imports of its own colony. After the fall of the dictator Manual Juan of Rosas, in 1853 came into effect a liberal constitution which opened the country with the immigrants. The economy started to thrive, the wool of sheep became the most important article of export. A retreat of the world economic situation in the middle of the years 1870 and the introduction of a currency indexed on gold caused in 1890 a new economic crisis. The economy based on export was attached by the provisions of guarantee-but. The typical signs of a deflationary spiral developed:
- money Supply in reduction --> lowers wages --> Hoarding (drop of consumption) --> stocks of goods --> bankruptcies of companies --> references --> massive unemployment.
The attempt of the government to set up an inflationary policy failed, because the population accumulated the new money by fear of the future. The offer remained excessive, the prices dropped still quickly up to the level of front. Long-term increases in price would have made the saving gravitational, would have pushed with more consumption, and would have started again the interior economy.
These economic instabilities brought Gesell has to think of the nature of the money, in its commercial own interest.
Outlines and consequences
Gesell arrived at the following conviction:In nature all is subjected to the rhythmic change of “Becoming and Disappearing” (Werden und Vergehen) - only the money seems withdrawn from the momentary character of this world. Since the money, contrary to the goods, “does not rust” nor “is not damaged”, the holder can wait, until the goods are cheap enough for him. Tradesmen are forced to lower their prices, then they must cover their expenses by appropriations. The money owner makes pay this need by the interest. These re-entries of interests do not benefit however the community, but are lent again (made up interests). From this way, more and more from money is extracted from economic flow. “Unproductive” richnesses are accumulated where they are not necessary. On the other hand, the “gained” money is removed with the active population. To overcome this dominant position, the money, in its gasoline, must imitate nature. The money must “rust” in accordance with the proposal of Gesell, which means that it must lose its value periodically. At once that it is “transitory”, it does not have any more a dominant position (“liquidity”) on the market compared to human work and with the products, so that it must be put at the service of the market, without interests. Thus, the money is used for the man, and not the man the money. The revaluation on the former level must take place using the “free money” (Freigeld). Each one would be thus eager not to keep its money too a long time. That which does not need goods, can thus regularly pay its debts, its invoices, its rent, etc Ainsi, of the money is available constantly and for all.
This is why Gesell gave him the name “money free” (Freigeld). It is constantly freely available, because nobody would be stupid at the point to accept a progressive loss in value towards zero. Such a money is a true money, because the money must be used as agent of exchange, and not paralyze the economy by its accumulation.
Stable money, stable economy
By the constant money circulation, its quantity can be proportioned so that the purchasing power of the currency, as well as the prices, remain stable. There would be always natural fluctuations of the prices by the fact of permanent innovations. The obsolete products would be withdrawn quickly from the market, would be this only by their gift with the needy one. There would be no thus important fluctuations in the economy, neither deflation nor inflation. According to Gesell, the social disorders which had with a high unemployment would be also eliminated in a durable way. The discovery of a “natural” order of the currency, felt like such by Gesell, changed its life of the whole to the whole. He became a social reformer, his reflections were an important contribution to the resolution of the social question. Its first writings will be the consequence Die Reformation im Münzwesen als Brücke zum sozialen Staat , Nervus rerum and Die Verstaatlichung of Geldes . An abundance of booklets, Spanish and German books and tests followed. In 1900, Gesell settles in Neuchâtel (Swiss), to devote itself to the agriculture and, as an autodidact, the study of the economic theory. Its principal book appeared in 1916 Die natürliche Wirtschaftsordnung durch Freiland und Freigeld ( the natural economic order founded on the stamping from the ground and the currency ), was translated into several languages and was republished many times.
Political commitment
In April 1919, it was named by Ernst Niekish at the post of police chief of the people to finances, which it exerted however only during one week. After the end of the Bavarian Republic of the police chiefs, Gesell first of all was shown of high treason, then discharged. Because of its participation in the events of Munich, the return on its farm was refused to him by the Swiss authorities. After that, Gesell is withdrawn with co-operative colony cofondée by Franz Oppenheimer with Oranienburg-Eden. It dies there on March 11th, 1930.
Little time after two free money successful experiences has place with Schwanenkirchen in the Bavarian forest and Wörgl with the the Tyrol. The free money experiment (WARA-Freigeldexperiment) implemented by Dr. Nordwall on the island of Norderney, also belongs to this series of practical studies of free economy.
These projects could make face with the bad consequences of the crisis of the worldwide economy in the years 1930. The ideas of Gesell functioned very well. However, the persons in charge made the error print “true tickets” thus competing with the national banks. Thus, the projects could be prohibited. According to criticisms, the banks did that in their own interest, and not in the interest of the population (sic) which is impoverished immediately again. Everywhere in the world one will hear of these projects. Particularly in France and in the USA one wished to imitate them, to control the interior crises.
Rebirth of its thought
Situations of massive unemployment and deflation in many countries led communities of individuals has to create local currencies and complementary to the currency of State, as for example the S ystème of E changes L ocal (SALT) or of the regional currencies into Argentina and Germany (the Regiogeld, of which Chiemgauer) functioning on the principles of the frank currency. Regio functions like a “currency complementary” to the EURO, and is with parity with it. The circulation of the currency east guarantees by the character perrisable currency. The tickets are protected all like the Euro from the counterfeit and are guaranteed inflation because of its regular loss of value.
Its writings
- Die Reformation im Münzwesen als Brücke zum sozialen Staat (1891)
- Nervus rerum (1891)
- Die Verstaatlichung of Geldes (1892)
- El Sistema Monetario Argentino - Known Ventajas known there Perfeccionamento (1893)
- Die Anpassung of Geldes und seiner Verwaltung year die Bedürfnisse of the modernen Verkehrs (1897)
- Cuestion Monetaria Argentina (1898)
- Die argentinische Geldwirtschaft und ihre Lehren (1900)
- Das Monopol DER schweizerischen Nationalbank (1901)
- Die Verwirklichung of Rechts auf den vollen Arbeitsertrag durch die Geld- und Bodenreform (1906)
- Die neue Lehre von Geld und Zins (1911)
- the natural economic order (1916)
- Gold oder Frieden? Vortrag, gehalten in Bern amndt 28. April 1916 (1916)
- Freiland, die eherne Forderung of Friedens - Vortrag, gehalten im Weltfriedensbund in Zurich amndt 5. Juli 1917 in Zurich (1917)
- Münchener Verteidigungsrede - veröffentlicht in: “Die Freiwirtschaft VOR Gericht” von Richard Hoffmann (1918) (siehe auch: Münchner Räterepublik)
- Der Abbau of Staates nach Einführung der Volksherrschaft. Denkschrift year die zu Weiumar versammelten Nationalräte (1919 - 2. Auflage 1921)
- Die gesetzliche Sicherung der Kaufkraft of Geldes durch die absolute Währung. Denkschrift zu einer Eingabe year die Nationalversammlung (1919)
- Das Reichswährungsamt. Finanzielle Wirtschaftliche, politische und Vorbereitung für the Seine Einrichtung (1920)
- International Valuta-Assoziation (IVA). Voraussetzung of Weltfreihandels - DER einzigen für das zerrissene Deutschland in Frage kommeneden Wirtschaftspolitik (1920)
- Year das deutsche Volk! Kundgebung of Freiwirtschaftlichen Kongresses zu Hannover (1921)
- Deutsche Vorschläge für die Neugründung of Völkerbundes und die Übetprüfung of Versailler Vertrages. Öffentlicher Vortrag, gehalten in der Aula of Gymnasiums zu Barmen amndt 20. Dezember 1920 (1921)
- Die Wissenschaft und die Freiland-Freigeldlehre . Kritik und Erwiderung (ohne Verfasserangabe erschienen) (1921)
- Denkschrift für die Gewerkschaften zum Gebrauch EIB ihren Aktionen in der Frage der Währung, der Valuta und der Reparationen (1922)
- Zweite Denkschrift für die deutschen Gewerkschaften zum Gebrauch EIB ihren Aktionen gegen den Kapitalismus (die Ausbeutung, ihre Ursachen und ihre Bekämpfung). Eine Gegenüberstellung meiner Kapitaltheorie und derjenigen von Karl Marx . Vortrag, gehalten in der Sozialistischen Vereinigung zur gegenseitigen Weiterbildung in Dresden amndt 8. May 1922 (1922)
- Die Diktatur in Not. Sammelruf für die Staatsmänner Deutschlands (1922)
- Das Trugbild der Auslandsanleihe und ein neuer Vorschlag zum Reparationsproblem. Eine weltwirtschaftliche Betrachtung, eine Warnung VOR Illusionen und ein positiver Lösungsvorschlag (1922)
- DER verblüffte Sozialdemokrat (Gesell-Acratillo 1922)
- Der Aufstieg of Abendlandes . Vorlesung, gehalten zu Pfingsten 1923 in Basel auf dem 1. Internationalen Freiland-Freigeldkongress (1923)
- Das Problem der Grundrente (Gesell-Sernocelli-Roth 1925)
- Die allgemeine Enteignung im Lichte physiokratischer Ziele (1926)
Quotations
- “the largest economist of our time (Keynes) devoted many pages to celebrate the merits of very secondary authors, such as Major Douglas or Silvio Gesell. ” Herland
- “During the years of post-war period, its disciples bombarded us specimens of its works. (...) we estimated, like the other university economists, that its deeply original efforts hardly deserved more attention than work of one unbalanced. (...) Attracting with him the quasi religious favor whose Henry George had formerly been the object, Gesell became the venerated prophet of a worship grouping throughout the world of the thousands of disciples. (...) Since the death of Gesell occurred in 1930 most of special enthusiasm that the doctrines cause as them his is related to other prophets (less eminent in our opinion). ” Keynes
to see too
Related bonds
- internal bonds:
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Wikisource bonds:
External bonds
- “socialist Sylvio Gesell proudhonien and reforming monetarist” (Fr)
- an market economy without capitalism by Werner Onken
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