Actually there is no money except the real-Some details(2)

It relates to our old post on the subject cited above.
The straightforward author of the OZAN-I-SHAR'IAH,Mufti Muhammad Shafi,writes that the magazine under discussion was published firstly in 1361 A.H,but now its third addition is being revised,in the light of a magazine "Almisbah al munir"written in 1148 AH.Its author Sheikh Muhammad Qaim Sindhi was Hanfi and Qadri. The said author,his Institution and successors have worked"very good"for us(Now this magazine Ozan-i-Shariah will be referred here as B-1).An other book "Door-i-hazar main Ozan-i Shara'iah written by Molana Abdul Majid Raees-published by Maktaba Asadya Karachi Pakistan will be referred here as  B-2.Its author has claimed as interpreter of the B-1.The B-1 was published in February-2008 whereas B-2 has no date. Our comments regarding some entries in these are as under.
At page-17 of B-1,the honorable author has written that he has taken 70 and 100 grains of barley each account separately, weighed personally(and through some Goldsmiths)with due care.In both the accounts the grains of barley were average in mass.This practice was repeated for some times.These barely-corns have been weighed side by side comparing with the prevalent weight- Masha.....The barley-corns have been weighed with different methods and concluded that the70 grains of barley having average mass are equal to 3 masha and 1 ratti(which is Sharai weight of Dirham and now3.0618 grams) and 100 barley -corns equal of one mithqal(Dinar) say 4.5 masha now equal to 4.374 grams.
       It is  mentioned here that the history of the barley and coins like Dinar/Mithqal,Dirham and Daniq is very old and pre-Islamic.At the advent of Islam the weights/measures were known.The barley grains which were being grown at that time are not grown now.As such the determination and fixation of weight of Dinar/dirham with reference to barley grains now seems to be defective. Now 16 varieties of barley are reported, out of which 4 to 5 are ancient one.According to the record of Muqaddimah of Ibn Khaldun,the Shariah Dinar/mithqal is equal to 72 barley-corns and weight of Dirham is derived from this statement as equal to 5o and two fifth barley-corns.
At the end of B-1, a chart has been arranged wherein the weight of Dirham is written as 3.0618 grams but weight of Daniq is written as 874.8 mg. Hence a Dirham is equal to 6 daniq,as such its weight is calculated as 5.248 grams which needs to be corrected.The weight of a Dirham(in the light of the statement of)
 muqaddimah of Ibn Khaldon is calculated now equal to 3.00 grams.The weight of a Mithqal/Dinar is written in B-1 as 4.374 grams, whereas from the entry  of maqadama referred to above it is derived as 4.25 grams.(Regarding the weights of Dinar/mithqal and Dirham Ibn Khaldun quoted the consences(Ijma). In B-1 the
weight of Sharai Dirham is written as 14 carat but-nil-daniq,whereas it is of 6 daniq(see Kitab al amwal and Ihkami Sultania referred to above),which needs necessary revision and correction. Against Dinar o5 Daniqs have been written,this entry also needs correction.
All other entries of B1&2 regarding weights/measures, like Ratal,Awaqya,Sa',Nisab of Zakah in Gold and Silver differs,due to the difference in school of thoughts.It seems, that the books like Kitab -al- Amwal by Abu Abayd-d 224 AH(which is considered the early source adjacent to the Sadar-i-Islam--Advent of Islam), & Ihkam-i-Sultanya by Al-Mawardi have not been consulted while writing the B-1 & 2.
CONCLUSION.
1. The difference in weight of Dinar/mithqal & Dirham is perhaps due to the difference in mass of different varieties and productions of barley-corns.
2.The weight(Daniq)has not been taken into account and process as per records  of the B-1and 2.
3.A few books have been consulted on the subject and important differences have been found among these.The writer of the Tafseer-i-Naeemi writes that the weight of a Dinar/Mithqal is equal to 24 carats and 1 carat is equal to 3 barley-corns ,hence it is equal to 72 grains.The writer of Lughat ul Quran has not elaborated it.
IMPORTANT POINT.The translator of Dr. Wahaba al-Zahail's book Hakim-Ullah gives a comprehensive foot note at page-42 of Massail Zakah O Sadqat,managed and published by an important Islamic Institution-IRI-Islamabd.The note is translated in English version as under:-
(The Nisab of Zakah in Gold i.e taxable quantity of Gold is 20 mithqal or 20 Dinars)According to Ahnaf a mithqal is equal to 5 grams but according to jamhoor(masses-majority of the Muslims)its weight is 3.60grams.The Faisal Islamic Bank declared its weight 4.457 grams and it is reasonable average weight OR it is equal to 4.25grams.And listen near the Hanabla a Dinar is less than a mithqal hence the Nisab of zakah according to Hanabla is calculated as 25-2/7+1/9 Dinars.At next page47 while mentioning the Nisab of Zakah in Silver he writes that 200 Dirhams were equal to 7 Mithqals, a Dinar was equal to 20 carats whereas a carat was equal to 5 barley-corns.Hence Dirham Shariah is equal to 70 barley-corns.As such between mithqal and Dinar equality is found.According to Ahnaf the weight of Dirham Shariah is3.50grams and according to Jamhhor it is of 3.208grams.The Arabic Dirham is equal to 2.975 grams.(The Nisab of Zakah, in Silver was mentioned,according to Ahnaf 200 Dirhams--approximately equal too 700grams and according to Jamhoor its weight is 642 grams.
Now some countries/Institutions struck the Gold Dinar and Silver Dirham,the details of which can be seen in print and electronic medias to know the current practice.

BJECTIVES OF THIS DISCUSSION


1.To state that:- Before and at the advent of Islam the business transactions were being made through Gold Dinars and Silver Dirhams (in shape of bullion and coins).The  same practice has been accepted in  Islam,and further the Gold Dinar/Silver Dirhams had been struck.The 7 Mithqals/Dinars were equal to 10 Dirhams(one Dirham=6 Daniqs).Afterward the fulus(fils) had been struck and used for minor translations.From the above record the Asool( first principle)is derived that the Islamic monetary system accepted such money which has intrinsic value, and there is no room for paper money or like it.Hence recourse is imperative. Most of the Islamic scholars in the past has seen and accepted this type of  money(except gold and silver and fulus for minor transactions) with abomination but following the "Objectives of Shari'ah".(It will be discussed briefly in the next note).
NOW THE KINDS OF MONEY ARE TREATED AS UNDER, AND THE MUSLIM SCHOLARS HAVE ACCEPTED THESE.  
NECESSARY GLOSSARY FOR USEFUL CONCEPTS TERM/MEANING:
.A. FULL BODIED MONEY
 MONEY WHOSE METALLIC CONTENTS HAD A VALUE IN NON-MONETARY USES(SUCH AS IN MAKING 
ORNAMENTS)EQUAL TO THEIR VALUE IN EXCHANGE.
B. COMMODITY STANDARD. A MONEY SYSTEM THAT IS BASED ON FULL BODIED MONEY. THE FAMOUS GOLD STANDARD WAS AN EXAMPLE OF COMMODITY STANDARD.

C. REPRESENTATIVE FULL BODIED MONEY. A SYSTEM OF TOKEN MONEY THAT HAVE LITTLE INTRINSIC VALUE BUT THAT IS BACKED(CAN BE CONVERTED INTO)A COMMODITY SUCH AS GOLD AND SILVER. THE TOKENS MAY OR MAY BE METALLIC. THE US AND SOME OTHER COUNTRIES USED THIS SYSTEM UNTIL THE MIDDLE OF THE TWENTIETH CENTURY, WHEN GOLD AND SILVER CERTIFICATES WERE ISSUED BY US TREASURY WHICH REPRESENTED THE VALUE OF UNDERLYING METAL AS FIXED BY THE GOVERNMENT.

D. FIAT MONEY: A MONEY THAT HAS LITTLE COMMODITY VALUE COMPARED TO ITS VALUE IN EXCHANGE. THIS MONEY IS ISSUED BY GOVERNMENT,CENTRAL BANK AND OTHER FINANCIAL INSTITUTIONS.

E. FIDUCIARY MONEY SYSTEM :A SYSTEM BASED ON FIAT MONEY.

GOLD STANDARD: A MONEY SYSTEM PREVALENT IN MANY COUNTRIES UNTIL THE EARLY 1970S BUT IS NOW DISCONTINUED UNDER WHICH THE UNITS OF THE CURRENCY OF COUNTRY WERE CONVERTIBLE INTO FIXED AMOUNTS OF GOLD:FIXED PARITY A UNIT OF CURRENCY-DEFINED AND MAINTAINED BY THE CENTRAL BANK AND BACKED BY THE SOVEREIGN GUARANTEE. (CONT"D-ISLAMIC MONETARY SYSTEM )
2.As far as the weight of Gold Dinar and Silver Dirham is concerned'"Various accounts are given of their weights.Some Institution have minted these coins now .The Reasonable and approved weights of these coins, by the authorized Islamic scholars may be followed.
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Actually there is no money except the real-Some details.

In pre-Islamic days Roman and Persian money was in current in al-Hajaz,together with a few Himyarite silver coins bearing the Attic owl.The same was accepted at the advent of Islam and up-to the days of Hadrat Abu Bakar Sadiq(RATA). Hadrat Muhammad(peace be upon him) said"Do not sell gold for gold except when it is like for like,nor inappropriate one through the other.nor sell silver for silver except like for like,nor misappropriate one through the other,nor sell thing that are absent for those that re present".(Subul-al salam).According to(Al mawardi-d-1058CE) the writer of "Ahkam-i-Sultania" during the days of Hadrat Umar(RATA)the coin of dirham was struck weighing 06 Daniq.and wight of 7 mithqals was equal to the wight of 10 dirhams". Abu Ubayd al-Qasim b.Salam(d224 AH)writes under point1617 of his Kitabal Amwal"In Ummayid period,when it was decided to design a new Dirahams,full consideration was given to their consequences and effects.....They had struck the coin,but it was creating the problems for the collection of Zakah.....So they decided to redesign it between these two(full dirham'and Tabriyya) Dirahms,in such form,which might neither reduce the proceeds of Zakah nor might cause loss to the owners.More over,(they considered that) this design should be in accordance with the Nisab of Zakah during the age of the Prophet(peace be upon him).The people,before this,used to pay Zakah in two parts;separately from big and small Di hams.When the Ummayad rulers decided to form a new dirham,they wighed both the previous ones and found the bigger equal to eight Daniq and the smaller equal to four Daniqs. They designed a medium size dirham;equal to six Daniqs.Then,they weighed it with Mithqal,because it always remained a determined wight. They took such ten Dirhams that one of these was equal to six Daniqs. Then they weighed these (Dirhams)with Mithqal and found them exactly seven Mithqals.Thus,these Dirhams gained three characteristics(i) These(ten Dirhams) became equal to seven(Mithqals)in weight(ii)A balance was established between the bigger Dirhams and smaller one(iii) Complete conformity with the Sunnah of the Prophet(Peace be upon him)without any change.
Afterwards,these wights of Dirham were in practice, and the Muslim community agreed upon it,that is to say fully weighed Dirham is equal to six Daniqs,and if its weight is changed,then it will be said that this Dirham is less or more in weight,So,the people,in the payment of their
zakah are following the same path,which is oriented by the guiding principle of the Prophet hood,they neither exceed it nor deviate from it.Same will be the matters concerning buying and selling and blood-money for those people who keep the silver coins....Even before this(designing
Under point1599 Abu Ubayd said."I looked into   Umar's tradition and found that he equalized forty Dirhams to four Dinars,because this was the basic rule of exchange that one Dinar is equal to ten Dirham.
According to the Encyclopedia of Islam there we two monetary systems were prevalent(i)dhahab-Gold(ii)Waraq-Silver. Hadrat Imam Malik(d179AH) firstly had used the terms- Ehal al dhahab-People of gold.and EhalalWaraq- the people of Silver.
Ibn Khaldun writes that-7 Dianars are equal to 10 Dirahms and the weight of Shari'ah Diar is equal to 72 grains of barley, but the other books have different information as Dirham is equal to 70 grains of barley,Mithqal is equal to 100 grains of barley whereas one grain of barley is equal to 3 grains of rice etc.
(See-Fateh al Qadir Vol-1 Page-523,dar Mukhtar,Behar al-Raiq etc--and -Idara Al Ma'arif Karachi Pakistan'sOZAN-I-SHARI'AH Urdu version.
Hitti write with the reference of Islamic Scholars Tabari,Baladhuri and Yaqut that"A number of Gold and silver piece were struck before the time of Abd-al-Malik,but those were imitations of Byzantine and Persian type. Abd-alMalik struck at Damascus,in 695,the first gold Dinar and sidirhams which were purely Arabic.It is said that Hadrat Umar(RATA) struck the Dirham Baghalia in 18AH.

It is concluded from the above information and traditions that the Islamic monetary system is based on Gold and Silver and  money like these.

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MONEY CREATION

‎The history of"money creation"refers back to the famous story of the gold smiths of medieval England. The people used to deposit their gold coins with them in trust,and they used to issue a receipt to the depositors. In order to simplify the process,the goldsmiths started issuing"bearer
'receipts which gradually took the place of gold coins and the people started using them in settlement of their liabilities. When these receipts gained wide acceptability in the market,only a small fraction of the depositors or bearers eve come to the goldsmiths to demand actual gold. At this point the goldsmiths began lending out some of the deposited gold secretly and thus started earning interest on these loans. After some time they discovered that they could print more money(i.e paper gold deposit certificates)than actually deposited with them and that they could loan out this extra money on interest. They acted accordingly and this was the birth of "Money Creation" or"Fractional reserve lending" which means to loan out more money than one has as a reserve for deposits. In this way these goldsmiths,after becoming more confident,started decreasing the reserve requirement and increasing the percentage of their self-created credit,and used to loan out four,five,even ten times more gold certificates than they had in their safe rooms.


Initially,it was abuse of trust and a sheer fraud on the part of the goldsmiths not warranted by any norm of equity,justice and honesty. It was a form of forgery and usurpation of the power of the sovereign authority to issue money.But over time,this fraudulent practice( like other practices and evils penetrated in the society)turned into the fashionable standard practice of the modern banks under the "fractional reserve" system. How the money changers and bankers have succeeded in legalizing the" creation of money "by the private banks,in spite of the strong opposition from several rulers in England and USA,and how the Rothschild acquired financial master over the whole of Europe and the Rockefeller over the whole of America is a long story(the related books on the subjected can be seen )now lost in the mist of numerous theories developed to support the concept of" money creation" by the private banks.But the net result is that the modern banks are creating money out of nothing They are allowed to advance loans in the amounts ten times more than their deposits. The coins and the notes issued by the government as a genuine and debt-free money have now a very insignificant proportion in the total money in circulation,most of which is artificial money created by advances made by the banks The proportion of real money issued by the governments has been constantly declining in most of the countries,while the proportion of the artificial money created by the banks out of nothing is ever-increasing.The spiral of loans built upon loans is now the major part of the money supply. Taking the example of UK according to the statistics of 1997 the total money stock in the country was 680 billion pounds,out of which only 25 billion pounds were issued by the government in the form of coins and notes. All the rest 655 billion pounds were created by the banks.It means that the original debt-free money remained only 3.6% of the whole money supply while 96.4% is nothing but a bubble created by the banks.(Derived from"the Historic judgement on interest"-Maktaba Ma'ariful Quran Karachi Pakistan) 
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