The 1848 financial crisis revealed an antagonism between credit and specie money
Evidence
European space was becoming more and more unified precisely because of the internationalism of money power. 1 847- 8 was a financial and monetary crisis which seriously challenged received ideas as to the meaning and role of money in social life. The tension between the functions of money as a measure and store of value, and money as a lubricant of exchange and investment had long been evident. But it was now registered as a downright antagonism between the financial system (the whole structure of credit moneys and ‘fic titious capitals’) and its monetary base (gold and other tangible commodities that give a clear physical meaning to money). Credit money in effect came crashing down, leaving a shortage of ‘real money’ and specie in 1 847-8. Those who controlled specie controlled a vital source of social power. The Rothschilds used that power to great effect and, through their superior command over space, came to dominate the finances of the whole European continent. — David Harvey, The Condition of Postmodernity, 1658
Categorization
- XREF: Connects to the reader’s interest in economic periodization — the credit/specie antagonism foreshadows the flexible-accumulation/post-Fordism analysis in later chapters. — connects to: Credit money and commodity-backed money stand in structural antagonism — David Harvey, The Condition of Postmodernity: An…, 1658; The 1847-8 crisis proved capitalism generates crises from its own internal workings. — David Harvey, The Condition of Postmodernity: An…, 1643; Historical coinage rebellions show money’s nature provokes unprincipled, disproportionate demands — Georg Simmel, on individuality and social forms_…, 458
Broader Connections
- Historical coinage rebellions show money’s nature provokes unprincipled, disproportionate demands
#expands(0.72) — Georg Simmel, on individuality and social forms_…, 458