Re: (OPE-L) Re: on money substance and abstract labor

From: cmgermer@UFPR.BR
Date: Tue Jun 08 2004 - 10:53:55 EDT

Thank you for your questions, Jerry. Here are the answers I can give to them:

> A couple of brief questions about the last sentence above.
> 1) Why isn't credit money a form of money?

The answer depends on the theory adopted. In my opinion in Marx’s theory
money and credit money are different concepts that referr to different
objects. If money is the ‘general’ equivalent, then there is no more than
one equivalent, otherwise the equivalent would not be ‘general’. Thus,
there aren’t different forms of the general equivalent or of money. But in
the performance of the functions of money in the circulation, ‘instruments
of circulation’ that perform those functions are produced, like f.i. the
symbols of value in the case of the means of circulation function. Credit
money is an instrument of circulation derived from the means of payment
function, and develops into the Central Banknote and deposits along the
development of the integrated banking system. Central Banknotes and
deposits are therefore forms of credit money. On the other hand, money is
a commodity, produced like the others by social labor. Credit money is a
certificate of debt, issued and cancelled as debts are issued and
I think that in everyday parlance this distinction is not relevant,
especially in the means of circulation function, where the name of the
instrument of circulation is not relevant either. But it is in the theory.
It is also of practical relevance for the capitalist, and for the
capitalist state, because they have to build reserves of money as real
value (independent of factors other than the object of value itself),
which credit money isn’t. This is why the relevant capitalist states and
the capitalists privately till today hold huge reserves of gold, as you
can see in the IMF statistics, or rough estimates in the case of private

> b) Does the above mean that you don't think that credit money
>      is part of the money supply?

Theoretically it isn’t, in my opinion. Striclty speaking, again according
to Marx’s theory, money is supplied to the system by its physical
production, and is supplied to the circulation by being released from
hoards. Credit money is supplied and suppressed by the continuous issuing
and cancelling of debts.


> In solidarity, Jerry

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