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Black Leadership Analysis

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Leader Analysis

All Labor Has Dignity

This book chronicles King’s speeches and interactions with Unions between 1957 to 1968.

The chief obstacles to America fulfilling its promise are war, poverty, and racism. These three evils are intertwined and once person deeply understand them the lines between them are blurred. The forces that create, perpetuate, and defend the institutions are also aligned.

The three evils manifest as an ultra-right coalition: big business, military, and reactionaries in both parties. It is essential for students of Dr. King to remember he had opposition from both parties. This ultra-right coalition was formed because they used similar goals and tactics. The same way police are used to intimidate civil rights protesters the military threatens people in Vietnam. These entities work together to garner public support and maintain control.

More informally the Ku Klux Klan and White Citizen’s council weld power in opposition to the progressive agenda. He made clear both organizations were two sides of the same coin. The White Citizen’s Council would not use violence or racial slurs, but they would use legal means to undermine the civil rights movement. The White Citizens Council was more socially acceptable, so they could expose racist rhetoric in public that would aid the Ku Klux Klan in recruitment. Both organizations promoted regression and inequality in America.

To combat the ultra-right an ultra-left coalition needed to be formed from the civil rights, academia, the church, and labor movement. These movements are natural allies. Most black people are members of the working class. So labor rights, wage floors, old age medical care are vital to living freely in America. Labor will benefit from desegregation because there will not be a more vulnerable class of workers willing to break picket lines. Traditionally, black people would scab segregated unions. If labor allows people of all races to join the unions will be stronger.

Unions were some of the early financial supporters of the Southern Christian Leadership Conference (SCLC). Unions having access to well-employed people could crowdfund easily and quickly. The capital was put to good use in the Birmingham Campaign and the Montgomery Bus Boycott to name a few areas.

Fortunately, union funds did not stop King from speaking on racism and segregation in the unions. King implored the United Autoworkers Union to desegregate its local affiliates during an anniversary dinner he was asked to speak. His critique of discrimination in unions extended to the America Federation of Unions the largest and most powerful at the time.

King also praised many unions that had a history of integration and fighting for Civil Rights outsized the Union. The United Package Worker Union of America (UPWA) was an example of an integrated activist union. The UPWA even ran integrated schools in Appalachia. The CIO was not only integrated; it united workers from all trades. His affiliation with these radical unions led to much adversity for King.

Throughout King’s career, he was smeared as a Communist for his support of unions that were started by Communists. This book explains how many unions purged themselves off communists by the 1950s. Also, labor organizer Stanley Levison was considered to be a communist. The author that compiled the speeches in this book explains Levison cut ties with the Communist Party in 1957 before he met King. So King has no contact with Communists or the Communist Party.

All social ills were not merely due to policy. Automation ballooned unemployment by taking away lower skilled jobs. Blacks disproportionately occupied these jobs. White workers also felt this contraction in labor but not to the same extent as blacks. King proposed a universal basic income (UBI) to ease the effects of high unemployment. The government would peg UBI to median income, not the lowest income level.

UBI is the centerpiece of a comprehensive committed anti-poverty program. Previous anti-poverty programs targeted a single aspect of poverty such as housing or food. These programs were embarked on by groups that were not fully committed to seeing the program through. The federal government is the only entity big enough to address these issues in a holistic and sustained manner.

The Vietnam War in addition to being fundamentally immoral hindered the building of the welfare state. It diverted most of the countries resources into subverting Vietnam’s national will. Because the population wanted to support the troops and stand in solidarity against the enemy, the social justice movement was hampered. Many Americans felt a united front needed to be maintained and any internal strife should be postponed until peacetime.

The last speech in the book is “To The Mountain Top” given the day before King died. He explains how the Civil Rights Movement is just part of a larger world movement for justice. Starting with Plato, he gives a summary or Western history bending toward justice and landing right here with us at the Mason Temple in Memphis. He realized he would not make it there with us. However, we are to soldier on and continue his work.

Strength to Love

Strength to Love is a collection of sermons written when pastoring at churches in Montgomery and Atlanta. There are also three sermons written while King was in jail. The sermons that were written in jail will be highlighted with a star (*).

A Tough Mind and a Tender Heart

To be a good Christian one must marry idealism and realism. Realism characterized by a “tough-mind” is defined as incisive thinking, realistic appraisal, and decisive judgement. Idealism characterized by a “soft-heart” is the ability to empathize and love in the form of agape. Tough-mindedness alone leads a person to be cold and detached. Soft-heartedness alone drives someone to be gullible and timid.

There is a lengthy discussion on the false conflict between religion and science. King asserts they are not in conflict, but complementary. They use different methods that lead to different types of truth. So it is acceptable for Christians to offer historical and philosophical critique of the Bible. Both types of truth are necessary to navigate the current world.

He also talks about how science has been perverted to lead people to believe black people are genetically inferior. King asserts disparity in wealth and education are the result of policy current and historical injustice.

Nonviolent resistance is the synthesis of idealism and realism. In that, it realizes blacks will not be able to defeat the most powerful military the world has ever known but still needs to fight for its dignity.

Transformed Nonconformist

Christians are charged with mimicking the life of Jesus which was a life of non-conformity. Christians should be moved by their convictions and a fear of social reprisal. The current state of the world will not allow a true Christian to live a “well-adjusted” life.

Many in the field of psychology say mental and emotional health is reflected by conformity to society. With conformity comes a large social circle, wealth, and comfortable life. Jumboism, is how Dr. King defines the zeitgeist of the age, the need to grow in numbers and be part of something large. Modern day churches have a large quantity of low-quality worshipers.

On Being a Good Neighbor

It takes more than following a creed to be Christian. One must actively manifest their faith in the world. One must show the same universal altruism the Samaritan showed. On the road to Damascus. The Samaritan did not worry in the injured Israelite saw him negatively. He just helped even though doing so would mean he could be ambushed and robbed himself.

Interestingly King says even in the Bible G-d didn’t always show this love. In the Old Testament G-d commands Israel not to kill other Israelites, but slaughter Philistines. Ethnic level morality was not only in Israel. It was in the way Greeks took care of aristocracy and not slaves. The current manifestation of ethnic level morality was American racism.

The following quote shows how Dr. King viewed the relationship between laws and morality:

“Morality cannot be legislated, but behavior can be regulated. Judicial decrees may not change the heart, but they can restrain the heartless…But acknowledging this, we must admit that the ultimate solution to the race problem lies in the willingness of men to obey the unenforceable. ”

*Love in Action*

This sermon was based around the Bible verse “Father, forgive them; for they know not what they do.” He explains how those that perpetuate racism and discrimination are not fully aware of the hurt they cause. Then entreats Christians to offer limitless forgiveness.

King offers the example of Socrates’ execution as an example of respectable men not understanding what they did. The men that executed Socrates did not understand his concept of G-d. Socrates’s G-d had philosophical depth and went beyond traditional concepts and superstitions. King also gives the example of the same ills befalling those that persecuted Christians in the Roman Empire.

There is another discussion on what we today call racial realism, the idea that science supports the notion of black inferiority. He specifically mentions the work of Ruth Benedict, Margaret Mead, and Melville J. Herskovits in debunking the claim.

War has outlived its usefulness in Dr. King’s estimation. In the past, it was needed as a negative good to ensure dictators did not take over the world. Now with the invention of nuclear weapons, war could kill all life on earth. The world needs new methods to solve conflict.

*Loving Your Enemies*

Those outside the Christian religion see ‘loving your enemies” as impractical and/or weak. These people do not understand the concept of forgiveness. Forgiveness means an adverse action no longer affects the future relationship. It is no longer block in future interaction. The goal in Christian conflict is not humiliating to the enemy, but to it fosters love and understanding.

Love is often misunderstood. There are three types of love. Eros which is a yearning for union with G-d. Phillia which is reciprocal love between men, friendship. Lastly, there is Agape which is a love for all humanity as your brother. Often outsiders consider “love your neighbor” as “like your neighbor.” Like is a sentimental affection. It is impossible to like someone that actively works to harm you.

Lastly loving your enemies is not only beneficial for the other person. It is advantageous to the person doing the forgiving. Loving your enemies helps to build a relationship with G-d. Hate is cancerous and erodes vital unity and the agape love naturally inside the individual.

Knock at Midnight

In this speech, King urges the congregation to action by explaining society is at a midnight hour. He tells of conformity and comfort are the principle values of most people. It is the churches job to refocus these people. The loss of morality has lead to a mentality of “survival of the slickest.”

The church in recent years has become pro-war. The membership has swollen, but the quality of worship has not. The black church is burning with emotionalism and has turned worship into entertainment. The white church is freezing with classism in direct opposition to the teaching of Christ. The church should not be the master or slave of government, but its critic and conscious.

At the end of the speech, he announces the Supreme Court has deemed bus segregation unlawful.

The Man Who Was a Fool

King presents the Bible story of a rich man Jesus called a fool. He didn’t do this just because the man was rich. The man was called a fool because he mismanaged his wealth through lack of charity. The man saw himself as an island unconnected to those around him. His worldly possessions held more importance than the well-being of his brothers. By not taking his duty to his fellow man seriously, he acted like he was the creator not a creation. There is not a single event in a day that is not dependent on the community working together.

King makes a case against materialism and humanism. Materialism, the idea we are matter randomly organized, can easily be disproven by the complexity and beauty of the universe. Humanism, the idea humans are the greatest creation and destine for good, can be easily disproven by our modern world making us less happy. We have tons of labor-saving devices, but work harder for less reward. Also, science gave us the atomic bomb, proving science is as good as those the weld it.

This speech was updated in 1967. The 1967 version is far more popular.

The Death of Evil on the Seashore

This speech was given on the second anniversary of the Brown v. Board of education victory. He models history as chiefly a struggle between good and evil. The concept of an eternal struggle between good and evil is echoed not only in Christianity, but in Hinduism, Judaism, Zoroastrianism, and Platonism. King retells the story of Moses parting the Red Sea and its closing when the Egyptian tried to enter. The evil Egyptians died on the Seashore.

Good is inevitably going to win the fight. The evidence is not only Supreme Court decisions like Brown v Board. It can also be found in the successful struggle for independence in Africa in Asia.

He ends with giving the congregation reassurance that they are on the right side of history and to continue to struggle with oppressors using love.

Three Dimensions of a Complete Life

Already summarized in Measure of a Man

*Shattered Dreams*

St. Paul’s life is used in this speech as an analogy for having a great dream differed. St. Paul planned to travel to Spain to spread the gospel but is abducted by Romans and executed in a Roman jail. St. Paul never realized his greatest dreams.

Not achieving goals can make people react in a few different ways. One can become bitter and cynical. The cynicism will cause the most harm to the person that holds it in the form of physical ailments. One can sink into fatalism, the belief there is no choice in life, and give up. The last option is to accept the bad while holding on to hope.

King believes there is an ultimate destiny for man, but man gets a level of freedom within that ultimate destiny. Due to G-d granting a degree of freedom to man he allows evil to exist on earth.

Gandhi was mentioned in this work as a historical figure that was not allowed to see a free unified India. Other historical figure mentioned were Woodrow Wilson, Handel, and Abraham Lincoln

What is Man?

Summarized in Measure of a Man

How Should a Christian View Communism

All Christian pastors must talk about Communism. Communism is a growing influence spreading over Asia, Africa, and Europe. As a philosophy, it rivals Christianity and is its biggest competition.

Communism is opposed to Christianity. In Communism, the state is central to reality, with the goal being the end of class. There are no moral absolutes in Communism so any method including violence and propaganda can be used to gain power. Because there are no moral absolutes Communism leads to authoritarian governments in practice. All personal liberty is suspended because the most important social entity is the state, not the individual.

Even though King is against Communism, he agrees with many of their criticisms of modern society. The church has lost the prophetic voice, that inspired Roman nobles to give up their life of luxury for persecution. Many Christians are more focused on heavenly freedom than human freedom. The otherworldliness has prevented Christian criticism of racism, poverty, and classism. Therefore Marx’s critique of religion as the “opiate of the people” sticks.

King’s goal is to establish The Kingdom of G-d, which is neither an individual or collective enterprise. The Kingdom is the synthesis of both universal truths.

Our God is Able

G-d is the center of the Christian universe. Many want to make man the center and science the new religion. Nothing man made can compare to the wonder of the natural universe. Science has led to the atomic bomb which puts us all at risk. Man can not save himself without divine intervention.

In Christian philosophy, evil is real, and G-d will conquer it. There is real-world evidence of history bending toward good. The ultimate defeat of fascism in WWII and the end of colonialism in the global south show that good typically prevails. Segregation will soon be added to the list.

He then goes into a personal story from his own life. The first 24 year of it was lived in ease due to his parent’s stability and wealth. When he began leading the Montgomery Bus Boycott his life changed radically. Death threats were constant. One night after a particularly frightening call he could not sleep. He went to the kitchen made coffee and paced the floor. He prayed to G-d for strength. Suddenly, King feels G-d’s presence. That event gave him enough strength to soldier on.

Later that month his house was bombed. No one was hurt, but King was able to take the news in stride. He knew he would be protected by a higher power.

Antidotes to Fear

Fear is ever growing in modern society. Some fear is good and keeps us out of trouble. Other fears force us to innovate. However, the fast pace of contemporary society can lead to constant fear.

King prescribes the antidotes to fear: introspection, courage, love, faith. Introspection will help in deciphering rational from irrational fear. Soldiering on in the face of fear is courage. Love is defined as mutual trust and goodwill. King gives the example of mutual nuclear disarmament. Faith is building an inner resilience to adversity based on spirituality.

Love was especially important to King. He explains as black people grow in political influence whites will fear retaliation. Blacks must reassure white people their fear is unfounded. Blacks want to forgive and forget and move forward in love.

To end the speech he takes time to remember an elderly woman named Mother Pollard. She was an activist in the Montgomery campaign remembered for the quote, “My feet’s is tired but my soul is rested”. After a meeting in which King was putting on a strong front to hide his inner fear and depression, Mother Pollard pulled him aside. She asked if something was wrong, he assured her he was fine. She realized he was covering and reminded him he had the full support from the team, but more importantly, he had the support of G-d. King was forever grateful.

The Answer to a Perplexing Question

The perplexing question is: “How can evil be cast out of the world?”

There are two views debunked by King. The first is the humanistic view that man can cast out evil with his ability. Modern society assumes the advances in science and technology will inevitably lead to a better future. The humanistic ideal is proven false by the current state of the world. The other model is G-d will solve our problems when he is ready, and man has no responsibility. This ideal leads Christians to become otherworldly. It also reduces G-d to a “cosmic bellhop” serving your every wish. The correct view is man acting as a tool of G-d will bring about change.

There is a brief aside in which King explains why he does not believe in infant damnation. Once one rejects the view that man has no capacity for good, one can accept that an infant is not tarnished with sin at birth. Therefore if a child dies, he will not go to hell. It is essential to understand King’s position on this issue to explain why he is pro-choice.

Paul’s Letter to American Christians

King creates a mock epistle in this essay. In it, Paul writes a letter to American Christians illustrating many points. “Paul” chides us in advancing in science but regressing in morality. Our church is divided into many denominations and by race. All divisions in the church are counterproductive. Also, America has high-income inequality with the top 0.1% owning 40% of the wealth.

Pilgrimage to Nonviolence

This essay is an explanation on how King grew past his fundamentalist upbringing. Seminary introduced him to liberal theology. This version of theology stressed reason and criticized the Bible.

There was one issue King had trouble grasping, the idea that man was inherently good. There were too many examples of men rationalizing bad behavior for King not to see reason as tarnished by sin.

Even though liberal theology had flaws, King could not go back to fundamentalism or neo-orthodoxy. It was too pessimistic on the nature of man and led followers to otherworldliness.

His disillusion with the nature of man led him to study social gospel, which is the study of how religion is used to enact change in society. In this study, Mohandas Gandhi was a giant. His idea of satyagaha, love force, was the Christian doctrine of “turn the other cheek.” Now he had a real-world example of non-violence that worked.

Non-violence was not only crucial for American race relations but international conflict. There was a time when war was needed to stop dictators from spreading. However, now with the advent of atomic weapons, war was just too dangerous. Nonviolence had to be the main conflict resolution method in the future.

The Measure of a Man

The book The Measure of a Man is summary of lectures given at the at the 1958 Conference of Christian Education. Those that attended the event loved what Dr. King had to say so much that they asked him to create the book.

King starts by fundamentally defining what a man is. Man, in his analysis, is both physical and spiritual. Individuals must cultivate both natures. Deplores those that see man as merely an animal. In this camp he puts, naturalist, materialist, and Marxist. The other camp he considers fundamentally Greek. Plato believed the soul must liberate itself from the body to fully develop. Jesus said man could not live on bread alone. The biblical quote supports the idea that the physical (bread) is needed in conjunction with other elements.

An explanation of how man is inherently a sinner follows. Man having a dual nature can choose good or evil. He knows what is right and chooses to do evil in spite of this knowledge. Because man chooses evil, he loses some of the image of G-d. To redeem himself, he needs the grace of G-d.

Many theologians lose site of man being a sinner because they see man as naturally progressing to a higher state. Depth psychology tries to confuse the issue as a conflict between phobia and desire. Ultimately, there is little real evidence of either view. Man chooses to do wrong.

King also has an interesting take on Western Civilization. He sees Western Civilization as rooted in egalitarianism and humanitarianism. The current manifestations of colonialism, segregation, and oppression is a diversion from these values. The mission of King is to return Western Civilization to its values.

The factors of a great life are length, breadth, and height. By length, King means not a life with a long duration, but one in which a person reaches a multitude of goals. For a life of longevity one must have self-love and strive to perfect a craft. King’s definition of breadth is a concern for fellow man and actively moving to improve the lot of others. Height is the connection to G-d and spiritual development. If one of these elements are missing our life is headed for folly.

This book shows King wasn’t a Democrat, Republican, Marxist, or Capitalist, but a Christian. Christianity was the root of all Dr. King’s philosophy and action. Many internet commentaries attempt to downplay King’s Christianity or deny he was Christian. A small sample of his writing would prove otherwise.

Dr. Martin Luther King Library

This is a list of summaries of books written by MLK.

The Measure of a Man

Strength to Love

Why We Can’t Wait: Philosophy

Why We Can’t Wait: History

All Labor Has Dignity

Dr. King and Malcolm X Agree on Kennedy’s Death

As a product of historical revisionism, the public has begun to see Dr. King and Malcolm X as polar opposites. Dr. King is seen as a capitulate and begging white people for acceptance. Malcolm X is seen as someone staunchly focused on self-determination and separation. In reality, their philosophies are closely linked. One example of that was their views on the death of John F Kennedy.

Dr. King said in the book Why We Can’t Wait the following on Kennedy’s death:

The unforgivable default of our society has been its failure to apprehend the assassins (of murdered Civil Rights leaders). It is a harsh judgment, but undeniably true, that the cause of the indifference was the identity of the victims. Nearly all were Negroes. And so the plague spread until it claimed the most eminent American, a warmly loved and respected president.

These words show that King understood Kennedy as a victim of racialized violence, that Kennedy had a hand in helping spread. Some of the Civil Rights leaders King’s mentions as being killed were killed during Kennedy’s presidency. So King is saying that America’s history of racialized violence killed Kennedy.

The infamous “Chickens Coming Home to Roost” quote was given after Malcom X complete a speech in December of 1963. A reporter asked how he felt about Kennedy’s death. In response he said the following:

Being an old farm boy myself, chickens coming home to roost never made me sad; they only made me glad.

The Nation of Islam silenced him for 90 days for this remark. Once the period of silence was over Malcolm X explained to reporters what he meant. He told the reporter he saw the assassination as the result of racialized violence that had been prominent in America since its founding. The same thing Dr. King said.

So King and Malcolm X differed in oratory style, not philosophy. Their philosophy is strikingly similar once one reads both men.

While on the subject of the “chickens come home to roost” quote. It was given after a speech called God’s Judgement of White America. The lecture explains his stance on separation.

Many internet commentators have misrepresented what Malcolm X meant by separation. The commentators say Malcolm X wanted black people to separate without getting their share of wealth from the America they helped to build. The reader can find a link to the full speech below.

Malcolm X wanted blacks to confront the power structure to obtain their share of the wealth America had accumulated on our labor. The wealth could be used to go back to Africa or build an independent nation in America.

To not petition America for our fair share wealth is not militant or radical. It is a capitulation. So again King and X both believed in reparations. The difference is the method of compensation. X wanted to build a separate nation. King wanted to make a welfare state in America that included other races.

Chickens Come Home Speech

The Present Problem with Indian Currency

World War I devalued the currency of many nations. Each country is now looking for ways to strengthen their currency. In this paper, Ambedkar explains how exchange rates are determined and gives prescriptions for India’s currency.

Most economists were vexed on whether a currency should be stabilized or pegged favorably to foreign currency. Many factors determine an exchange rate. The first and most important is the purchasing strength of currency in its home country. For example, if Indian prices drop allowing a consumer to buy more with his currency, then the currency value raises concerning other countries. That is if the other country experiences no change in price.

Exchange rates cause trade imbalances, not the other way around. When a country tries to peg their currency to foreign currency to improve trade is headed for disaster. If one ignores the actual purchasing power of the currency business at home will suffer.

For many years, the gold standard or pegging the currency to a fixed amount of gold was successful. Unfortunately, after the war, only the United States could keep their money pegged to an amount of gold. The gold standard reduces the ability of a country to change their money supply in times on need.

Economist split society into three classes. Investor class which lends money to the business class that hires the employer class. When a currency falls the business class benefits because the money they borrowed and the wage they agreed to pay their employees is discounted. When the currency increases it hurts the business class because the reverse will be true. So Ambedkar recommends India have a nimble currency that can move to accommodate changing conditions. He then presents a gold – rupee exchange rate that could work.

The full document can be read HERE

Commercial Relations of India in the Middle Ages

This paper gives a short history of the rise of the Islamic Caliphate and its effects on trade. Before the Caliphate, Arabia was in decline because Rome established direct routes to India. The people of Arabia were tribal and pagan. Many began to leave Arabia an integrate into neighboring Byzantine, Persia, and Eqypt.

Islam emerged as a stabilizing force that united warring Arabian tribes. Once the tribes, they began to expand their influence conquering the land from Morrocco to India. This process took generations, but it reconnected the Eurasian landmass.

Europe responded by solidifying power in the church around Rome. This gave Europe enough organization to resist the incursion. However the following factors impeded trade and culture in Europe:

  1. Constant war
  2. Lack of money
  3. No banking system

Remnants of the Byzantine Empire in Italy were able to keep commerce going. The Italian in Genoa and Venice were able to keep commerce going in Western Europe. Unfortunately, the Ottoman Empire grew in strength choking trade between India and Europe. The need to reestablish trade motivated Columbus to seek a Western route.

The full document can be read HERE

Evidence Before the Royal Commission

The paper is a court transcript in which Ambedkar advised the commission on how to improve the strength of the rupee. The transcript implies that rupees saturate the market.

To solve this problem, Ambedkar proposes what he calls the gold standard. India would use the following currencies.

1. The rupee which will no longer be manufactured

2. A paper currency fully backed by gold

3. Bank notes partially backed by gold

With these three currencies, there is always a possibility that one could be overvalued or undervalued in respect to the other two.

The gold back paper currency will have limited production each year. There will not be enough issued to affect the overall price of gold. The public can exchange the gold backed currency for gold. The ability to exchange will ensure the currency will not be undervalued in respect to gold. Because if it is the currency will be traded in for gold reducing the supply.

Another advantage to having gold-backed currency circulating in the economy is it helps to stabilize the price of gold. Ambedkar saw more and more countries stockpiling gold, yet there were many alternatives to gold in the form of currency. He estimated that the price of gold would continue to be devalued because as people substitute currency for gold. Keeping gold circulating would increase demand, and that would steady the price as gold production increases due to technology.

The market was over saturated with rupees, so Ambedkar recommended putting a halt on production. The price of the rupee would be pegged to gold, but rupees could not be exchanged for gold. So the value of the rupee would not go down because it had a limited issuance. The value would also not inflate because when it does people will use the gold back currency. Ambedkar did accept there could be some extreme conditions in which the government would be forced to trade rupees for gold.

Bank notes were only mentioned briefly. Bank notes will be issued by private banks, and the government will require that the notes are partially backed by gold. It can be assumed that Ambedkar didn’t think bank notes would be created in large numbers.

Ambedkar asserts that he is a member of the labor class. As a member of said class, it is in his best interest to create a currency scheme that keeps the price of goods low. Most economists want a currency that holds its value in respect to gold. By doing this, he gives a window into how he sees himself. He also asserts that keep prices low or steady is the best thing for the country because it helps most people.

The price of goods should be the primary factor in Indian currency policy. The reason is the Indian economy is chiefly driven by internal trade. Most large European countries are driven by foreign trade. Therefore European currency policies can’t be imported whole-cloth.

Many on the council wanted Indian currency to return to its pre World War I level. In response, Ambedkar reminds them that increasing the value of the rupee will only matter if the prices of goods return to the pre- World War I levels. Increasing the value of a currency will increase price hurting the poor. Increasing the value of currency will also reduce trade.

The opposing view of Ambedkar’s gold standard is the gold exchange standard. In a gold exchange standard, a gold back currency is circulating in the country, but it can’t be exchanged for gold within the country. However, the currency could be exchanged for gold outside the country. So the exchange value is only valuable to exporters. Ambedkar explains the limited exchange will not be enough to ensure that the money supply will not grow too large.

The full document can be read HERE

Review of Currencies and Exchanges

Ambedkar criticizes a book written by his colleague at Elphinstone College, H. Chablaini. He claims the work is too short to properly explain the topic. It lacks proper methodology and has conflicting ideas.

Chablani wrote his plan to stablize the Indian economy.

  1. Issue Rupees in conjunction with the increase in Indian production
  2. Allow large amounts of rupees to be converted into metals
  3. Have the Rupee backed by silver

If too many Rupees are issued their value would decrease in respect to gold and silver. The result would be investors trading in currency for metal reducing the amount of currency. The metal exchange would be a safety value for inflation.

Ambedkar rebuts this with a history of the gold exchange in the world market. In 1873, there was a sharp decline in gold production. Gold exchanges allowed for more money to circulate in the world economy keeping prices steady. After gold production increased in 1910, the major economies ended or restricted their gold exchanges. If they had not inflation would have reduced overall growth because too much money was circulating in the economy. So having a metal exchange would reduce the stability of currency.

Ambedkar also criticizes Chablani’s idea that the limited issuance of the Rupee did not lead to its rise in 1893. Ambedkar folds firm in his belief in fiat currency backed by gold without exchange value.

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