From Reality Sandwich :
In fairy tales, humans can possess exterior souls, things magically containing or embodying individual life force -- stone, egg, ring, bird or animal, etc. If the thing is destroyed, the human dies. But while the thing persists, the human enjoys a kind of immortality or at least invulnerability.
Money could be seen as such an exteriorized soul. Humans created it, in some sense, in order to hide their souls in things that could be locked away (in tower or cave) and hidden so their bodies would acquire magical invulnerability -- wealth, health, the victoriousness of enjoyment, power over enemies -- even over fate.
But these exterior souls need not be hidden away -- they can be divided almost indefinitely and circulated, exchanged for desire, passed on to heirs like an immortal virus, or, rather like a dead thing that magically contains life and "begets" itself endlessly in usury. It constitutes humanity's one really totally successful experiment in magic: no one calls the bluff and after 6000 years, it seems like Nature. (In fact, an old Chinese cosmogonic text claimed the two basic principles of the universe are Water and Money.)
It's worth noting that in marchen, folk tales, the characters with external souls are often the villains. Clearly, the practice must appear uncanny to any normal society -- in which magic (call it collective consciousness in active mode) is channeled through ritual and custom to the life of all -- not the aggrandizement of one against all (black magic or witchcraft). In the form of money, the exterior soul, shattered into fragments, so to speak, can be put into circulation but also stolen, monopolized, guarded by dragons, so that some unlucky humans can be stripped of all soul, while others gorge or hoard up soul-bits of ancestors and victims in their goulish caves or "banks," etc.
The beloved in the tale may also have an exterior soul. It falls into the grasp of the evil sorcerer or dragon and must be rescued. In other words, desire, which is alienated in the form of a symbolic object (reified, fetishized), can only be restored to its true fate (love) by re-appropriation from the expropriator, stealing it back from the wizard. The task falls to "Jack," the third and youngest, sometimes an orphan or disinherited, possibly a fool, a peasant with more heart than any prince, generous, bold, and lucky.
Exactly the same story can be seen acted out in every honest ethnographic report on the introduction of money into some pre-monetary tribal economy. Even without the usual means of force, terror, oppression, colonialist imperialism or missionary zeal, money alone destroys every normal culture it touches.
Cargo Cults and Ghost Dances
Interestingly, in nearly every case, some sort of messianic movement Cargo Cult, or Ghost Dance type resistance movement springs up within a generation or two after first alien contact. These cults invariably make appeal to spirits (or even demons when
circumstances really begin to deteriorate) for the power to overcome money, to "provide good things" without recourse to the black magic of money, the vampirization of other peoples' external souls -- the malignancy of wealth that is not shared.
This is a major trope in all the tales. Jack gives away part of his last loaf precisely to the power-animal or shaman or old lady with the very gift he'll need in his quest, but he gives unwittingly, not in expectation of exchange. Jack always stands for what Polanyi and Mauss call the Economy of the Gift.
A great many fairy tales must have originated in "folk memories" of earlier non-hierarchal social structures, embodied in narrative (myth) and ritual, and given focus during the period when this ancient polity was threatened and finally overcome by later or alien systems -- particularly by money, by the coins that always appear in these tales.
Proudhon believed that money had originally been invented by the People as a means to pry loose and force into circulation the hoarded wealth of the "dragon," the oppressor class. This idea has interesting resonances.
It points to the fact that for "the people," money in hand represents not oppression but pleasure, gratified desire. Money may not be the root of all evil, but given the existence of money, "love of money" is quite natural. Alchemy epitomizes this jouissance of money in the fairy-tale concept of transmutation, production of gold without labor as a free gift of Nature to her lovers: Jove's body as shower of golden coins.
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