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        ID-3-1          Golden Calf.                  January 8th,   1986

        Golden Calf.

        As any community develops beyond primitive subsistence forms, the 
        specialization of skills begins to limit the effectiveness of 

        As a community progressively differentiates, the opportunity for 
        direct exchanges of equivalent perceived value becomes 

        It becomes necessary to adopt an intermediate carrier of value, 
        so that I can accept a "currency" from a person purchasing my 
        products and expect to pass that currency on to those who supply 

        In emergent primitive societies the currency usually had in 
        itself some perceived tangible value, i.e. grain or livestock, as 
        something of real substance was necessary to induce the seller to 
        part with substantial products.

        A variety of considerations, convenience, denomination, 
        durability, etc. lead to the gradual adoption of precious metal 

        The valuation of the coinage depended however on a secondary 
        cultural evaluation, the attribution of significance to a 
        particular set of metals, stones, etc  - altogether different 
        from the more tangible and immediate significance of grain, etc.

        At this point human culture began to be entranced by objects of 
        its own making, began to attach as much significance its own 
        created images as it did to the reality the money was supposed to 

        At no time in this developing process was the amount of money in 
        circulation intelligently related to the job it had to do - 
        provide for the proper interaction of the economy.

        Rather the control of the money supply was focused on the task of 
        maintaining its credibility and power.

        To keep the peasants working they had to be hungry and the carrot 
        had to be scarce.

        Isaac Newton, as Master of the Royal Mint, had much to do with 
        the confirmation of this process when he designed and minted the 
        first gold sovereign.

        This coin could not easily be forged, shaved or otherwise 
        adulterated and thereby rendered the banking industry accountable 
        and honest.

        Landsman Community Services Ltd.              ID-3-1    Page    1

        ID-3-1          Golden Calf.                  January 8th,   1986

        Prior to that time, to leave money with a banker was risky.

        To be sure of recovering the value deposited you had to insist on 
        exactly the same coins in return and hope that they had not been 

        Newton's coin established a reliable standard and made it 
        possible for bankers to consolidate all deposits in one, and pay 
        off accounts with any coins from that one heap.

        Like many good ideas, it brought unexpected consequences.

        Landsman Community Services Ltd.              ID-3-1    Page    2

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