What is the origin of money? What are the conditions under which nations always have money, and under what circumstances need nations not use money?

There are small tribes in Africa, and one in Australia, who live as the Sknepies and the Drevlyans lived in olden times. These tribes lived by breeding cattle and cultivating gardens. We become acquainted with them at the dawn of history, and history begins by recording the fact that some invaders appear on the scene. And invaders always do the same thing: they take away from the aborigines everything they can take,—cattle, corn, and cloth; they even make prisoners, male and female, and carry them away.

In a few years the invaders appear again, but the people have not yet got over the consequences of their first misfortunes, and there is scarcely anything to take from them; so the invaders invent new and better means of making use of their victims.

These methods are very simple, and present themselves naturally to the mind of all men. The first is personal slavery. There is a drawback to this, because the invaders must take over the entire control and administration of the tribe, and feed all the slaves; hence, naturally, there appears the second. The people are left on their own land, but this becomes the recognized property of the invaders, who portion it out among the leading military men, by whose means the labour of the tribe is utilized and transferred to the conquerors.

But this, too, has its drawback. It is inconvenient to have to oversee all the production of the conquered people, and thus the third means is introduced, as primitive as the two former; this is, the levying of a certain obligatory tax to be paid by the conquered at stated periods.

The object of conquest is to take from the conquered the greatest possible amount of the product of their labour.
It is evident, that, in order to do this, the conquerors must take the articles which are the most valuable to the conquered, and which at the same time are not cumbersome, and are convenient for keeping,—skins of animals, and gold.

So the conquerors lay upon the family or the tribe a tax in these skins or gold, to be paid at fixed times; and thus, by means of this tribute, they utilize the labour of the conquered people in the most convenient way.

When the skins and the gold have been taken from the original owners, they are compelled to sell all they have amongst themselves to obtain more gold and skins for their masters; that is, they have to sell their property and their labour.

So it was in ancient times, in the Middle Ages, and so it occurs now. In the ancient world, where the subjugation of one people by another was frequent, personal slavery was the most widespread method of subjugation, and the centre of gravity in this compulsion, owing to the non-recognition of the equality of men. In the Middle Ages, feudalism—land-ownership and the servitude connected with it—partly takes the place of personal slavery, and the centre of compulsion is transferred from persons to land. In modern times, since the discovery of America, the development of commerce, and the influx of gold (which is accepted as a universal medium of exchange), the money tribute has become, with the increase of state power, the chief instrument for enslaving men, and upon this all economic relations are now based.

In “The Literary Miscellany” there is an article by Professor Yanjoul in which he describes the recent history of the Fiji Islands. If I were trying to find the most pointed illustration of how in our day the compulsory money payment became the chief instrument in enslaving some men by others, I could not imagine anything more striking and convincing than this trustworthy history,—history based upon documents of facts which are of recent occurrence.

In the South-Sea Islands, in Polynesia, lives a race called the Fiji. The group on which they live, says Professor Yanjoul, is composed of small islands, which altogether comprise about forty thousand square miles. Only half of these islands are inhabited, by a hundred and fifty thousand natives and fifteen hundred white men. The natives were reclaimed from savagery a long time ago, and were distinguished among the other natives of Polynesia by their intellectual capacities. They appear to be capable of labour and development, which they
proved by the fact that within a short period they became good workmen and cattle breeders.

The inhabitants were well-to-do, but in the year 1859 the condition of their state became desperate: the nation and its representative, Kakabo, were in need of money. This money, forty-five thousand dollars, was wanted as compensation or indemnification demanded of them by the United States of America for violence said to have been done by Fijis to some citizens of the American Republic.

To collect this, the Americans sent a squadron, which unexpectedly seized some of the best islands under the pretext of guaranty, and threatened to bombard and ruin the towns if the indemnification were not paid over on a certain date to the representatives of America.

The Americans were among the first colonists who came to the Fiji Islands with the missionaries. They chose and (under one pretext or another) took possession of the best pieces of land on the islands, and established there cotton and coffee plantations. They hired whole crowds of natives, binding them by contracts unknown to this half-civilized race, or they acted through special contractors and dealers of human merchandise.

Misunderstandings between these master planters and the natives, whom they considered almost as slaves, were unavoidable, and it was some of these quarrels which served as a pretext for the American indemnification.

Notwithstanding their prosperity the Fijis had preserved almost up to that time the forms of the so-called natural economy which existed in Europe during the Middle Ages: money was scarcely in circulation among them, and their trade was almost exclusively on the barter basis,—one merchandise being exchanged for another, and the few social taxes and those of the state being paid in rural products. What could the Fijis and their King Kakabo do, when the Americans demanded forty-five thousand dollars under terrible threats in the event of nonpayment? To the Fijis the very figures seemed inconceivable, to say nothing of the money itself, which they had never seen in such large quantities. After deliberating with other chiefs, Kakabo made up his mind to apply to the Queen of England, at first merely asking her to take the islands under her protection, but afterwards requesting definite annexation.

But the English regarded this request cautiously, and were in no hurry to assist the half-savage monarch out of his difficulty. Instead of giving a direct answer, they sent special commissioners to make inquiries about the
Fiji Islands in 1860, in order to be able to decide whether it was worth while to annex them to the British Possessions, and to lay out money to satisfy the American claims.

Meanwhile the American Government continued to insist upon payment, and as a pledge held in their de facto dominion some of the best parts, and, having looked closely into the national wealth, raised their former claim to ninety thousand dollars, threatening to increase it still more if Kakabo did not pay at once.

Being thus pushed on every side, and knowing nothing of European means of credit accommodation, the poor king, acting on the advice of European colonists, began to try to raise money in Melbourne among the merchants, cost what it might, if even he should be obliged to yield his kingdom into private hands.

So in consequence of his application a commercial society was formed in Melbourne. This joint-stock company, which took the name of the “Polynesian Company,” formed a treaty with the chiefs of the Fiji-Islanders on the most advantageous terms. It took over the debt to the American Government, pledging itself to pay it by several instalments; and for this the company received, according to the first treaty, one, and then two hundred thousand acres of the best land, selected by itself; perpetual immunity from all taxes and dues for all its factories, operations, and colonies, and the exclusive right for a long period to establish banks in the Fiji Islands, with the privilege of issuing unlimited notes.

This treaty was definitely concluded in the year 1868, and there has appeared in the Fiji Islands, side by side with the local government, of which Kakabo is the head, another powerful authority,—a commercial organization, with large estates over all the islands, exercising a powerful influence upon the government.

Up to this time the wants of the government of Kakabo had been satisfied with a payment in local products, and a small custom tax on goods imported. But with the conclusion of the treaty and the formation of the influential “Polynesian Company,” the king's financial circumstances had changed.

A considerable part of the best land in his dominion having passed into the hands of the company, his income from the land had therefore diminished; on the other hand the income from the custom taxes also diminished, because the company had obtained for itself the right to import and export all kinds of goods free of duties.

The natives—ninety-nine per cent. of the population—had
never paid much in custom duties, as they bought scarcely any of the European productions except some stuffs and hardware; and now, from the freeing of custom duties of many well-to-do Europeans along with the Polynesian Company, the income of King Kakabo was reduced to nil, and he was obliged to take steps to resuscitate it if possible.

He began to consult his white friends as to the best way to remedy the trouble, and they advised him to create the first direct tax in the country; and, in order, I suppose, to have less trouble about it, to make it in money. The tax was established in the form of a general poll-tax, amounting to one pound for every man, and to four shillings for every woman, throughout the islands.

As I have already said, there still exists on the Fiji Islands a natural economy and a trade by barter. Very few natives possess money. Their wealth consists chiefly of raw products and cattle; whilst the new tax required the possession of considerable sums of money at fixed times.

Up to that date a native had not been accustomed to any individual burden in the interests of his government, except personal obligations; all the taxes which had to be paid, were paid by the community or village to which he belonged, and from the common fields from which he received his principal income.

One alternative was left to him,—to try to raise money from the European colonists; that is, to address himself either to the merchant or to the planter.

To the first he was obliged to sell his productions on the merchant's own terms (because the tax-collector required money at a certain fixed date), or even to raise money by the sale of his expected harvest, which enabled the merchant to take iniquitous interest. Or he had to address himself to the planter, and sell him his labour; that is, to become his workman: but the wages on the Fiji Islands were very low (owing, I suppose, to the exceptionally great supply of labour); not exceeding a shilling a week for a grown-up man, or two pounds twelve shillings a year; and therefore, merely to be able to get the money necessary to pay his own tax, to say nothing of his family, a Fiji had to leave his house, his family, and his own land, often to go far away to another island, and enslave himself to the planter for at least half a year; even then there was the payment for his family, which he must provide by some other means.

We can understand the result of such a state of affairs. From his hundred and fifty thousand subjects, Kakabo
collected only six thousand pounds; and so there began a forcible extortion of taxes, unknown till then, and a whole series of coercive measures.

The local administration, formerly incorruptible, soon made common cause with the European planters, who began to have their own way with the country. For nonpayment of the taxes the Fijis were summoned to the court, and sentenced not only to pay the expenses but also to imprisonment for not less than six months. The prison really meant the plantations of the first white man who chose to pay the tax-money and the legal expenses of the offender. Thus the white settlers received cheap labour to any amount.

At first this compulsory labour was fixed for not longer than half a year; but afterwards the bribed judges found it possible to pass sentence for eighteen months, and even then to renew the sentence.

Very quickly, in the course of a few years, the picture of the social condition of the inhabitants of Fiji was quite changed.

Whole districts, formerly flourishing, lost half of their population, and were greatly impoverished. All the male population, except the old and infirm, worked far away from their homes for European planters, to get money necessary for the taxes, or in consequence of the law court. The women on the Fiji Islands had scarcely ever worked in the fields, so that in the absence of the men, all the local farming was neglected and went to ruin. And in the course of a few years, half the population of Fiji had become the slaves of the colonists.

To relieve their position the Fiji-Islanders again appealed to England. A new petition was got up, subscribed by many eminent persons and chiefs, praying to be annexed to England; and this was handed to the British consul. Meanwhile, England, thanks to her scientific expeditions, had time not only to investigate t............