Review of the Book:
The Lost Science of Money
by Stephen Zarlenga

John Stoner*

[Reprinted from GroundSwell, 2003]

Focuses on monetary history, theory and reform, from the Egyptian temples of Ammon to the present. Published in 2002 by American Monetary Institute, PO Box 601, Valatie, NY 12184. Cassete recordings are also available including a 2-hour address titled "Henry George's Concept of Money")

This is an impressive and comprehensive volume detailing the history of money and monetary systems from earliest times up to the present money problems in the U.S. and the world. In the author's words, "The thesis of this book is that a main arena of human struggle is over the monetary control of societies and that this control has been and is now exercised through obscure theories about the nature of money." "By misdefining the nature of money, special interests have often been able to assume the control of society's monetary system and, in turn, the society itself."

Originally researched from 1991 through 2002 and drawing on over 800 sources, this book is not one for the casual read. In fact, the author suggests a textbook approach to read a chapter, analyze it, then move on. The book is chronological and deeply interesting, especially to me, as the history of money in America. The Great Depression is analyzed as to the errors in monetary policies that produced it.

This history paints a new canvas. Many historical figures, revered in history studies in schools in the United States are seen in a new light that is not always flattering. Daniel Webster is shown in a new role, that of a paid lobbyist for the banking interests. The Federal Reserve System is presented as a poorly conceived entity right from the start. Henry George is quoted several times, and the single tax is presented as deserving of more attention.

Of interest are the descriptions of money in use in history, from "black money", so called because it tarnished readily, to leather money. The problems with gold and silver, hard money, are well presented.

The author suggests that the nature of human affairs requires government to have not three but four branches, the fourth branch to be monetary. The final chapter details proposals for United States money reform. Reform #1: nationalization of the Federal Reserve. Reform #2: ending fractional reserve banking and instituting the 100% Reserve Solution. Reform #3: institute anti-deflation programs and beware of deflation.

The book draws on the author's thirty-five years experience in the world of finance. He has published twenty books. This book was first published in Switzerland in 1999; it was updated and printed in English this past year.

* John Stoner, Beloit, WI, a retired Science teacher, who has served on the Board of Directors of the Teachers Credit Union for the past 23 years (the past 14 of which were as Chairman of the Board).