Aurum Potestas Est

We as a race and a culture have a massive love affair with gold. It is the basis of our currency, the definitive mark of wealth and status, in some ways the bedrock of our society. We hoard it, we covet it, we hide it away except for special occasions, but we never really use it.

This is perhaps the strangest thing about gold; for something around which we have based our economy on, it is remarkably useless. To be sure, gold has many advantageous properties; it is the best thermal and electrical conductor and is pretty easy to shape, leading it to be used widely in contacts for computing and on the engine cover for the McLaren F1 supercar. But other than these, relatively minor, uses, gold is something we keep safe rather than make use of; it has none of the ubiquity nor usefulness of such metals as steel or copper. So why are we on the gold standard? Why not base our economy around iron, around copper, around praseodymium (a long shot, I will admit), something a bit more functional? What makes gold so special?

In part we can blame gold’s chemical nature; as a transition metal it is hard, tough, and a solid at room temperature, making it able to be mined, extracted, transported and used with ease and without degenerating and breaking too easily. It is also very malleable, meaning it can be shaped easily to form coins and jewellery; shaping into coins is especially important in order to standardise the weight of meta worth a particular amount. However, by far its most defining chemical feature is its reactivity; gold is very chemically stable in its pure, unionised, ‘native’ form, meaning it is unreactive, particularly with such common substances as; for this reason it is often referred to as a noble metal. This means gold is usually found native, making it easier to identify and mine, but is also means that gold products take millennia to oxidise and tarnish, if they do so at all. Therefore, gold holds its purity like no other chemical (shush, helium & co.), and this means it holds its value like nothing else. Even silver, another noble and comparatively precious metal, will blacken eventually and lose its perfection, but not gold. To an economist, gold is eternal, and this makes it the most stable and safe of all potential investments. Nothing can replace it, it is always a safe bet; a fine thing to base an economy on.

However, just as important as gold’s refusal to tarnish and protect is beauty is the simple presence of a beauty to protect. This is partly put down to the uniqueness of its colour; in the world around us there are many greens, blues, blacks, browns and whites, as well as the odd purple. However, red and yellow are (fire and a few types of fish and flower excepted) comparatively rare, and only four chemical elements that we commonly come across are red or yellow in colour; phosphorus, sulphur, copper and gold. And rusty iron but… just no. Of the others, phosphorus (red) is rather dangerous given its propensity to burst into flames, is also commonly found as a boring old white element, and is rather reactive, meaning it is not often found in its reddish form. Sulphur is also reactive, also burns and also readily forms compounds; but these compounds have the added bonus of stinking to high heaven. It is partly for this reason, and partly for the fact that it turns blood-red when molten, that brimstone (aka sulphur) is heavily associated with hell, punishment and general sinfulness in the Bible and that it would be rather an unpopular choice to base an economy on. In any case, the two non-metals do not have any of the properties that the transition metals of copper and gold do; those of being malleable, hard, having a high melting point, and being shiny and pwettiful. Gold edged out over copper partly for its unreactivity as explored above (after time copper loses its reddish beauty and takes on a, but also because of its deep, beautiful, lustrous finish. That beauty made it precious to us, made it something we desired and lusted after, and (combined with gold’s relative rarity, which could be an entire section of its own) made it valuable. This value allows relatively small amounts of gold to represent large quantities of worth and value, and justifies its use as coinage, bullion and an economic standard.

However, for me the key feature of gold’s place as our defining scale of value concerns its relative uselessness. Consider the following scenario; in the years preceding the birth of Christ, the technology, warfare and overall political situation of the day was governed by one material, bronze. It was used to make swords, armour, jewellery, the lot; until one day some smartarse figured out how to smelt iron. Iron was easier to work than bronze, allowing better stuff to be made, and with some skill it could be turned into steel. Steel was stronger as well as more malleable than bronze, and could be tempered to change its properties; over time, skilled metalsmiths even learned how to make the edge of a sword blade harder than the centre, making it better at cutting whilst the core absorbed the impact. This was all several hundred years in the future, but in the end the result was the same; bronze fell from grace and its societal value slumped. It is still around today, but it will never again enjoy its place as the metal that ruled the world.

Now, consider if that metal had, instead of bronze, been gold. Something that had been ultra-precious, the king of all metals, reduced to something that was merely valuable. It had been trumped by iron, and iron would have this connotation of being better than it; gold’s value would have dropped. In any economic system, even a primitive one, having the value of the substance around which your economy is based change in value would be catastrophic; when Mansa Musa travelled from Mali on a pilgrimage to Mecca, he stopped off in Cairo, then the home of the world’s foremost gold trade, and spent so much gold that the non-Malian world had never known about that the price of gold collapsed and it took more than a decade for the Egyptian economy to recover. If gold were to have a purpose, it could be usurped; we might find something better, we might decide we don’t need that any more, and thus gold’s value, once supported by those wishing to buy it for this purpose, would drop. Gold is used so little that this simply doesn’t happen, making it the most economically stable substance; it is valuable precisely and solely because we want it to be and, strange though it may seem, gold is always in fashion. Economically as well as chemically, gold is uniquely stable- the perfect choice around which to base a global economy.

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The Plight of Welsh Rugby

It being a rugby time of year, I thought I might once again cast my gaze over the world of rugby in general. Rugby is the sport I love, and the coming of professionalism has seen it become bigger, faster, and more of a spectacle than ever before. The game itself has, to my mind at least, greatly benefited from the coming of the professional age; but with professionalism comes money, and where there’s money there are problems.

Examples of how financial problems have ruined teams abound all over the world, from England (lead by the financial powerhouse of the RFU) to New Zealand (where player salary caps are, if I remember correctly, set at £50,000 to avoid bankrupting themselves). But the worst examples are to be found in Britain, specifically in Wales (and, to a lesser extent, Scotland).

Back in the day, Wales was the powerhouse of northern hemisphere rugby. Clubs like Bridgend, Pontypool and Llanelli, among others, churned out international-level stars at a quite astounding rate for such relatively small clubs. Amidst the valleys, rugby was a way of life, something that united whole communities who would turn out to watch their local clubs in fierce local derbies. And the results followed; despite England and France enjoying the benefit of far superior playing numbers, Wales were among the most successful sides in the then Five Nations Championship, Welsh sides were considered the major challenge for touring southern hemisphere sides, and the names of such Welsh greats as JPR Williams, Barry John, Phil Bennett and, most famous of the lot, Gareth Edwards, have resonated down the ages. Or at least the nostalgic rugby press tells me, since I wasn’t really in a position to notice at the time.

However, professionalism demands that clubs pay their players if they wish to keep hold of them, and that requires them to generate a not insignificant degree of income. Income requires fans, and more importantly a large number of fans who are willing and able to travel to games and pay good money for tickets and other paraphernalia, and this requires a team to be based in an area of sufficient population and wealth. This works best when clubs are based in and around large cities; but since rugby is a game centred around rolling around in a convenient acre of mud it does not always translate well to a city population. As such, many rugby heartlands tend to be fairly rural, and thus present major issues when considering a professional approach to the game. This was a major problem in Scotland; their greatest talent pool came from the borders region, home of such famous clubs as Melrose and Galashiels, but when the game went pro in 1995 the area only had a population of around 100,000 and was declining economically. For the SRU to try and support all their famous clubs would have been nigh-on impossible, since there are only so many potential fans to go around those many with proud rugby heritage in such a relatively small area, and to pick one club over another would have been a move far too dangerous to contemplate. So they opted for a regional model; here, the old clubs would form their own leagues to act as a talent pool for regional sides who would operate as big, centrally contracted, professional outfits. The idea was that everyone, regardless of their club of origin, would come together to back their region, the proud sum of its many parts; but in reality many consider regional sides to be rather soulless outfits without the heritage or locality to drum up support. In Scotland they formed four regions originally, but the Caledonia Reds (covering the vast, lowly populated area north of the major cities) were disbanded after just a season and the Border Reivers, sprung from Soctland’s rugby heartland, went in 2005 after poor results and worse attendances. Now only Edinburgh and Glasgow are left, doing what they can in places with all the money and none of the heritage.

Ireland also adopted the regional model, but there it was far less of a problem. Ireland (which for rugby purposes incorporates Northern Ireland as well) is a larger, more densely populated country than Scotland, and actually has four major cities to base its four regional sides in (Limerick, Galway, Belfast and Dublin, whose potential to grow into a rugby powerhouse, as the largest conurbation of people in Europe without a major football side, is huge). Not only that, but relatively few Irish clubs had garnered the fame and prestige of their fellow Celts, so the regions didn’t have so many heritage problems. And its shown; Ireland is now the most successful country in the Celtic League (or RaboDirect Pro12, to satisfy the sponsors), Leinster have won 3 Heineken Cups in 5 years, and just four years ago, the national side achieved their country’s second-ever Grand Slam.

But it was in Wales that rugby had the farthest to fall, and fall it did; without the financial, geographical and club structure advantages of England or the virgin potential of Ireland, Welsh fortunes have been topsy-turvy. Initially five regions were set up, but the Celtic Warriors folded after just a few seasons and left only four, covering the four south coast cities of Llanelli (Scarlets), Swansea (Ospreys), Newport (Dragons) and Cardiff. Unfortunately, these cities are not huge and are all very close to one another, giving them a small catchment area and very little sense of regional rivalry; since they are all, apparently, part of the same region. Their low population means the clubs struggle to support themselves from the city population, but without any sense of historic or community identity they find it even harder to build a dedicated fan base; and with the recent financial situation, with professional rugby living through its first depression as player wages continue to rise, these finances are getting stretched ever thinner.

Not only that, but all the old clubs, whilst they still exist, are losing out on the deal too. Whilst the prestige and heritage are still there, with the WRU’s and the rugby world’s collective focus on the regional teams’ top-level performance nobody cares about the clubs currently tussling it out in the Principality Premiership, and many of these communities have lost their connection with clubs that once very much belonged to the community. This loss of passion for the game on a local level may partly be inspired by the success of football clubs such as Swansea, enjoying an impressive degree of Premier League success. Many of these local clubs also have overspent in pursuit of success in the professional era, and with dwindling crowds this has come back to bite; some prestigious clubs have gone into administration and tumbled down the leagues, tarnishing a reputation and dignity that is, for some, the best thing they have left. Even the Welsh national team, so often a source of pride no matter what befalls the club game, has suffered over the last year, only recently breaking an eight-match losing streak that drew stark attention to the Welsh game’s ailing health.

The WRU can’t really win in this situation; it’s too invested in the regional model to scrap it without massive financial losses, and to try and invest in a club game would have stretch the region’s wallets even further than they are currently. And yet the regional model isn’t working brilliantly either, failing to regularly produce either the top-quality games that such a proud rugby nation deserves or sufficient money to support the game. Wales’ economic situation, in terms of population and overall wealth, is simply not ideally suited to the excesses of professional sport, and the game is suffering as a result. And there’s just about nothing the WRU can do about it, except to just keep on pushing and hoping that their regions will gather loyalty, prestige and (most importantly) cash in due time. Maybe the introduction of an IRB-enforced universal salary cap, an idea I have long supported, would help the Welsh, but it’s not a high-priority idea within the corridors of power. Let us just hope the situation somehow manages to resolve itself.

Connections

History is a funny old business; an endless mix of overlapping threads, intermingling stories and repeating patterns that makes fascinating study for anyone who knows where to look. However, the part of it that I enjoy most involves taking the longitudinal view on things, linking two seemingly innocuous, or at least totally unrelated, events and following the trail of breadcrumbs that allow the two to connect. Things get even more interesting when the relationship is causal, so today I am going to follow the trail of one of my favourite little stories; how a single storm was, in the long run, responsible for the Industrial revolution. Especially surprising given that the storm in question occurred in 1064.

This particular storm occurred in the English Channel, and doubtless blew many ships off course, including one that had left from the English port of Bosham (opposite the Isle of Wight). Records don’t say why the ship was making its journey, but what was definitely significant was its passenger; Harold Godwinson, Earl of Wessex and possibly the most powerful person in the country after King Edward the Confessor. He landed (although that might be overstating the dignity and intention of the process) at Ponthieu, in northern France, and was captured by the local count, who subsequently turned him over to his liege when he, with his famed temper, heard of his visitor: the liege in question was Duke William of Normandy, or ‘William the Bastard’ as he was also known (he was the illegitimate son of the old duke and a tanner). Harold’s next move was (apparently) to accompany his captor to a battle just up the road in Brittany. He then tried to negotiate his freedom, which William accepted, on the condition that he swear an oath to him that, were the childless King Edward to die, he would support William’s claim to the throne (England at the time operated a sort of elective monarchy, where prospective candidates were chosen by a council of nobles known as the Witengamot). According to the Bayeux tapestry, Harold took this oath and left France; but two years later King Edward fell into a coma. With his last moment of consciousness before what was surely an unpleasant death, he apparently gestured to Harold, standing by his bedside. This was taken by Harold, and the Witengamot, as a sign of appointing a successor, and Harold accepted the throne. This understandably infuriated William, who considered this a violation of his oath, and subsequently invaded England. His timing of this coincided with another distant cousin, Harald Hardrada of Norway, deciding to push his claim to the throne, and in the resulting chaos William came to the fore. He became William the Conqueror, and the Normans controlled England for the next several hundred years.

One of the things that the Norman’s brought with them was a newfound view on religion; England was already Christian, but their respective Church’s views on certain subjects differed slightly. One such subject was serfdom, a form of slavery that was very popular among the feudal lords of the time. Serfs were basically slaves, in that they could be bought or sold as commodities; they were legally bound to the land they worked, and were thus traded and owned by the feudal lords who owned the land. In some countries, it was not unusual for one’s lord to change overnight after a drunken card game; Leo Tolstoy lost most of his land in just such an incident, but that’s another story. It was not a good existence for a serf, completely devoid of any form of freedom, but for a feudal lord it was great; cheap, guaranteed labour and thus income from one’s land, and no real risks concerned. However the Norman church’s interpretation of Christianity was morally opposed to the idea, and began to trade serfs for free peasants as a form of agricultural labour. A free peasant was not tied to the land but rented it from his liege, along with the right to use various pieces of land & equipment; the feudal lord still had income, but if he wanted goods from his land he had to pay for it from his peasants, and there were limits on the control he had over them. If a peasant so wished, he could pack up and move to London or wherever, or to join a ship; whatever he wanted in his quest to make his fortune. The vast majority were never faced with this choice as a reasonable idea, but the principle was important- a later Norman king, Henry I, also reorganised the legal system and introduced the role of sheriff, producing a society based around something almost resembling justice.

[It is worth noting that the very last serfs were not freed until the reign of Queen Elizabeth in the 1500s, and that subsequent British generations during the 18th century had absolutely no problem with trading in black slaves, but they justified that partly by never actually seeing the slaves and partly by taking the view that the black people weren’t proper humans anyway. We can be disgusting creatures]

A third Norman king further enhanced this concept of justice, even if completely by accident. King John was the younger brother of inexplicable national hero King Richard I, aka Richard the Lionheart or Couer-de-Lion (seriously, the dude was a Frenchman who visited England twice, both to raise money for his military campaigns, and later levied the largest ransom in history on his people when he had to be released by the Holy Roman Emperor- how he came to national prominence I will never know), and John was unpopular. He levied heavy taxes on his people to pay for costly and invariably unsuccessful military campaigns, and whilst various incarnations of Robin Hood have made him seem a lot more malevolent than he probably was, he was not a good King. He was also harsh to his people, and successfully pissed off peasant and noble alike; eventually the Norman Barons presented John with an ultimatum to limit his power, and restore some of theirs. However, the wording of the document also granted some basic and fundamental rights to the common people as well; this document was known as the Magna Carta; one of the most important legal documents in history, and arguably the cornerstone in the temple of western democracy.

The long-term ramifacations of this were huge; numerous wars were fought over the power it gave the nobility in the coming centuries, and Henry II (9 years old when he took over from father John) was eventually forced to call the first parliament; which, crucially, featured both barons (the noblemen, in what would soon become the House of Lords) and burghers (administrative leaders and representatives of the cities & commoners, in the House of Commons). The Black Death (which wiped out most of the peasant population and thus raised the value of the few who were left) greatly increased the value and importance of peasants across Europe for purely economic reasons for a few years, but over the next few centuries multiple generations of kings in several countries would slowly return things to the old ways, with them on top and their nobles kept subservient. In countries such as France, a nobleman got himself power, rank, influence and wealth by getting into bed with the king (in the cases of some ambitious noblewomen, quite literally); but in England the existence of a Parliament meant that no matter how much the king’s power increased through the reign of Plantagenets, Tudors and Stuarts, the gentry had some form of national power and community- and that the people were, to some nominal degree, represented as well. This in turn meant that it became not uncommon for the nobility and high-ranking (or at least rich) ordinary people to come into contact, and created a very fluid class system. Whilst in France a middle class businessman was looked on with disdain by the lords, in Britain he would be far more likely to be offered a peerage; nowadays the practice is considered undemocratic, but this was the cutting edge of societal advancement several hundred years ago. It was this ‘lower’ class of gentry, comprising the likes of John Hampden and Oliver Cromwell, who would precipitate the English Civil War as King Charles I tried to rule without Parliament altogether (as opposed to his predecessors  who merely chose to not listen to them a lot of the time); when the monarchy was restored (after several years of bloodshed and puritan brutality at the hands of Cromwell’s New Model Army, and a seemingly paradoxical few decades spent with Cromwell governing with only a token parliament, when he used them at all), parliament was the political force in Britain. When James II once again tried his dad’s tactic of proclaiming himself god-sent ruler whom all should respect unquestioningly, Parliament’s response was to invite the Dutch King William of Orange over to replace James and become William III, which he duly did. Throughout the reign of the remaining Stuarts and the Hanoverian monarchs (George I to Queen Victoria), the power of the monarch became steadily more and more ceremonial as the two key political factions of the day, the Whigs (later to become the Liberal, and subsequently Liberal Democrat, Party) and the Tories (as today’s Conservative Party is still known) slugged it out for control of Parliament, the newly created role of ‘First Lord of the Treasury’ (or Prime Minister- the job wasn’t regularly selected from among the commons for another century or so) and, eventually, the country. This brought political stability, and it brought about the foundations of modern democracy.

But I’m getting ahead of myself; what does this have to do with the Industrial Revolution? Well, we can partly blame the political and financial stability at the time, enabling corporations and big business to operate simply and effectively among ambitious individuals wishing to exploit potential; but I think that the key reason it occurred has to do with those ambitious people themselves. In Eastern Europe & Russia, in particular, there were two classes of people; nobility who were simply content to scheme and enjoy their power, and the masses of illiterate serfs. In most of Western Europe, there was a growing middle class, but the monarchy and nobility were united in keeping them under their thumb and preventing them from making any serious impact on the world. The French got a bloodthirsty revolution and political chaos as an added bonus, whilst the Russians waited for another century to finally get sufficiently pissed of at the Czar to precipitate a communist revolution. In Britain, however, there were no serfs, and corporations were built from the middle classes. These people’s primary concerns wasn’t rank or long-running feuds, disagreements over land or who was sleeping with the king; they wanted to make money, and would do so by every means at their disposal. This was an environment ripe for entrepreneurism, for an idea worth thousands to take the world by storm, and they did so with relish. The likes of Arkwright, Stephenson and Watt came from the middle classes and were backed by middle class industry, and the rest of Britain came along for the ride as Britain’s coincidentally vast coal resources were put to good use in powering the change. Per capita income, population and living standards all soared, and despite the horrors that an age of unregulated industry certainly wrought on its populace, it was this period of unprecedented change that was the vital step in the formation of the world as we know it today. And to think that all this can be traced, through centuries of political change, to the genes of uselessness that would later become King John crossing the channel after one unfortunate shipwreck…

And apologies, this post ended up being a lot longer than I intended it to be