Next to the desire for ownership of land and other natural resources, the subject of money, its desirability and the manner of its circulation in the economy is generally another difficult economic issue. As needs grew and production increased, money was utilized to facilitate exchange, to function as the measure of value of different objects and to determine a common measure of values.

These were the original reasons for using money. Subsequently, as money became a means of collecting valuable and needed objects and for satisfying lust and power, it became desirable for itself and gained the special attention of those with greed. Not only it became an instrument of power, for some, it also became the goal of their lives.

Before the use of money, only goods that are considered necessary were used in transactions by both sides. Anyone who produced something would exchange the surplus with another goods after his personal nerds had been satisfied. The exchange was therefore limited and the distribution took place automatically on the basis of fairness and need. Hoarding and concentration of wealth would never take root, because hoarding the surplus production in excess of needs would likely lead to damages and additional storage and handling costs.

In an exchange involving money, such difficulties do not arise A person with money buys goods from at low price and through successive hoardings and unrestricted trading he collects more and more money and uses it to earn even more money. Having gained such source of power, those with greed were able to change the direction of the markets - that were intended for livelihood of the people – from their natural and ordinary course to one dominated by greed and artificial demand and supply.

The difficulties associated to the use of money do not end here. Money was originally supposed to function as a measure and standard of value among for various goods, and to flow freely as blood in the economic veins of society. When it is desired as an end in itself, the lust for money took root in the hearts of those who had no firm faith or any aspiration for justice and public welfare. Therefore, the greedy ones used extraordinary methods to gain and accumulate money, the most damaging and riveting method being usury. Through usury, the wealth and the economic power in the society get concentrated in the hands of usurers. The true value of goods was ignored, and the balance between supply and demand, and the relationship between production and distribution were completely disrupted.

The greedy, with the poison of money through usury, extracted the economic blood from the body of the producing classes, which are the active and progressive organs of the society, and injected it into their plump bodies. They are the parasites of the society. Only God knows the consequence of this disproportionate situation, and history has shown its adverse implications. Just as unlimited ownership of land and natural resources promotes toyuldari (feudalism), the disproportionate system of capitalism has been brought about by usury. In different economic conditions, these two systems (toyuldari and capitalism) either have come about simultaneously, or one has brought about the other.1

Before people became skilled in the use of money and usury became a common practice, hoarding of essential goods was limited because trade was based on barter. Only those with production in excess of their needs could hoard goods for a limited time. Because they needed other types of goods, they had to sell the hoarded goods that had not yet been spoiled. After profiteers acquired the skill to use money, they were able to meet their own needs as well as to purchase cheaply goods from others in excess of their needs. They were able to hoard goods for a longer period of time in order to sell them at higher prices.

The fear that the hoarded goods may spoil and lead to a loss (in the era before the use of money) no longer existed because the capital was now in the form of money. The risk of damage is no longer relevant. The owner of money was - in accordance with the condition of the available goods, able to sell his goods at a lower profit - even lower than the prevailing prices, in order to buy other goods that were more suitable for hoarding and would bring more profit in the future.

With all the complications, disorders, and injustices that usury and the concentration of money have brought about everywhere, it can be accurately be said that they are the foundation and root of all or most social and economic problems. The benevolent reformers, theoreticians, and secular legislators in ancient and modern times have not paid sufficient attention to these issues.

Since money and usury have become prevalent, we have known of no restriction (except occasionally and at limited times) placed on usury. In major states, such as Rome and Greece, in past centuries, the practice of usury had reached a point where the debtor (at times, even his wife and children), who was unable to pay the loan and compounded interests, would become the property of the lender. In the face of such crimes, governments and laws were either silent or gave their stamp of approval.

It reached a point where the unprotected people, tired of the situation, engaged in bloody revolutions in Greece and Rome. As a result, laws pertaining to restriction of usury were legislated and the oppressive practice of owning the debtor was revoked2.

Religious laws and divine creeds have decisively prohibited usury prior to customary laws. The Torah explicitly forbids usury on several occasions, though regretfully the prohibition of usury in the Torah is restricted to the Jewish nation. Indeed, the Torah has prescribed usury toward others (except toward the children of Israel)3.

In the Bible (contrary to the Torah) the exalted Jesus has recommended lending money to others, even enemies, without demanding any interest4. Following the propagation of the mission of Christ in the West and the establishment of churches, the church leaders proclaimed Christ’s pronouncement and sermon to mean prohibition of usury. The severe restriction of usury by the church reached a point where the usurer and anyone considering it lawful were deemed irreligious and infidels.

Some Christians considered a usurer so abject and filthy that they would not shroud and bury his body. Following the church’s strict prohibition of usury, the civil and customary laws of Europe observed the church’s example in 789 A.D. Subsequently, in all the Christian countries of the Middle Ages, usury was formally banned. In 1593, transactions involving usury - whereby the capital and wealth of the poor were concerned - was legally permitted. Later, its practice extended to wealthy people as well, including the kings, major capitalists and even some heads of the church, e.g.. Pope Pius IX (1792 - 1878 A.D.) in 1860, violated in practice the laws of prohibition of usury. However, its prohibition had not been revoked formally. At the end of the Middle Ages and the beginning of the European Renaissance, objections were expressed against the legal prohibition of usury.

After the French Revolution in October 1789, which indeed was a revolution against all religious and customary privileges, the National Convention5, in one of its resolutions, totally abolished the prohibition law and allowed usury within the confines of a special legislation. This official and legal permission opened the way to usury in Europe. The usurious trades at the beginning of the Industrial Revolution and the money that was pouring into Europe from various channels and other countries created the base for such a capitalist system and differences that had been unprecedented in the history of nations.

In summary, this was the principle of usury in the laws or the Torah, the New Testament, the customary European laws and the way in which that principle has evolved. We do not have sufficient information about usury in religious and customary laws of other ancient nations. One can guess that no religious law (other than the Torah regarding non-Jews) has permitted usury officially or legally. It is certain, however, that wherever production was limited and money available, usury had prevailed. For this reason, usurious transactions have always been more common in the cities than in the villages, where the means of production, livelihood, and transactions are based on barter.

There were no religious prohibition of usury in the Arabian Peninsula before Islam and there were no laws regarding usury either. Following the migration of certain Jewish tribes to Yathrib (present day Medina) and other parts of the Arabian Peninsula, and once trade became common in Mecca and other cities, people gained access to money and the Arab capitalists learned usury from the Jews, who had special skills in amassing wealth through usury6. Many creditworthy persons would borrow money with low interest rates from the Jews and other capitalists and interest rates that are multiple (of the rate they borrowed at), some even at areas equivalent to multiple of the principal amounts lent.

Islam And The Prohibition Of Usury

Considering the spread of usury as well as the (economic) power wielded by the capitalist usurers in the Arabian Peninsula – particularly in Mecca and Yathrib, the birthplaces of Islam - a complete and absolute prohibition of usurious trades (similar to the abrogation of absolute ownership) was one of the greatest achievements of unique intellectual, social, and economic revolution that Islam represented. An examination of the verses of the Qur’an on usury shows that its prohibition was not abrupt and sudden.

The definite prohibition of usury, similar to other injunctions which opposed the deep-rooted habits and customs (of the Arabs) in those days came only after Islam had prepared the people mentally and warned them against its damaging and harmful consequences. It was the same with the absolute prohibition of liquor.

First, while condemning usury among the Jews, Islam warns Muslims against the repugnant practice (an-Nisaa 4:161)7. Next, while addressing the faithful, Islam explicitly prohibits, warns, and threatens against compounded usury (interest charged on the principal and interest):

“O ye who believe, Devour not usury, doubling and quadrupling (the sum lent). Observe (attaqu) your duty to Allah, that ye may be successful.” (3:130).

“And ward (attaqu) off (from yourselves) the fire prepared for disbelievers" (3:131)8.

Lastly, in various verses, through examples, threats, and promises, the Qur'an issues a decisive decree prohibiting various types of usury and usurious capital:

“Those who swallow usury cannot rise up save as he ariseth whom the devil hath prostrated by (his) touch. That is because they say: Trade is just like usury; whereas Allah permitteth trading and forbiddeth usury. He unto whom an admonition from his Lord cometh, and (he) refraineth (in obedience thereto), he shall keep (the profits of) that which is past, and his affair (henceforth) is with Allah. As for him who returneth (to usury) - Such are rightful owners of the Fire. They will abide therein”. (2:275).

“Allah hath blighted usury and made almsgiving fruitful. Allah loveth not the impious and guilty”. (2:276)9

Through clear examples, the first verse illustrates the mental and emotional conditions of the usurer, as well as the conditions of the communities with usury-based economies. These (usurers) are like people possessed by demons (insane), unable to depend upon their own wisdom and will. Their disturbed and unbalanced actions and behavior are the result of their considering usury the same as trades and other commercial transactions10.

Although trades and other forms of commerce that benefit the parties (to the transactions) are legal in Islam, usury is not. The verse concludes with a declaration of forgiveness for the usurer's past actions and a promise of hell for future involvement in usurious transactions.

The second verse predicts the final outcome of usury, which leads to deficiencies, darkness and annihilation, whereas charity brings increase and growth. The usurer misuses his blessings and material and spiritual wealth and that of others. He commits the filthiest sin. The love of God and the people die within the persons who practise unbelief and ingratitude in return for the blessings they have received.

“Allah loveth not the impious and guilty" (2: 276)11.

Verses that conclude the injunctions concerning usury and the abolition of all usurious interest, originating from the pagan era, follows these two verses and also the verses that promises reward for faith, good works, the establishment of worship, and the distribution of alms:

“O ye who believe! Observe your duty to Allah, and give up what remaineth (due to you) from usury, if ye are (in truth) believers.” (2:278).

“And if ye do not, then be warned of war (against you) from Allah and His messenger. And if ye repent, then ye have your principal (without interest). Wrong not, and ye shall not be wronged.” (2:279).

These two verses appeal to the faith and piety dormant in capitalists to give up their usurious profits. The Qur'an begins this economic revolution with an intellectual and spiritual revolution without force or violence. Accordingly, if the capitalists do not comply with that appeal, then they should be ready for a bloody war and revolution12.

It is a war (designated) by God and his messenger for the defence of truth and justice and as assistance to the poor and the needy. This war must continue until the usurers give up their practices and repent. If they repent, their principal should be returned to them. They should be permitted neither to commit oppression, nor to suffer from it.

The return of the principal is, however, conditional on the borrower’s ability to pay; otherwise he should be given an extension until he is able to do so:

“And if the debtor is in straitened circumstances, then (let there be) postponement to (the time of) ease; and that ye remit the debt as almsgiving would be better for you if ye did but know.” (2:280).

But there is more gain and benevolence if the lender gives up the principal also and considers it almsgiving.

A close examination of these verse shows the Qur'anic method of solving social and spiritual ills: how to gradually uproot the illness of usury in the society by warning the people against its harms and familiarizing them with its ills without imposing or instigating any social canker. It declares war against those who continue usury. The Qur'an has not treated any other prohibited or reprehensible acts as effectively as usury.

Distinguishing Usury

What is explicitly and definitely understood from the verses is the prohibition of usury and the emphasis on its prevention. What does the Qur'an mean by "usury" and how is it distinguished from other sound and lawful transactions? The intention of the Qur'an can be understood and the usurious transactions distinguished from the non-usurious ones by three methods. First, by understanding the meaning of the word ‘usury’ (riba). Second, by understanding the nature of usurious transactions at the time and milieu, in which the Qur’an was transmitted. Third, by understanding the sunnah, the collection of words and deeds of the Prophet and those infallible Imams. In their decisions related to these types of injunctions, the jurists (fuqaha) follow the same method.

The Arabic word riba (usury) means to grow or to inflate. In its connotation as transaction, it refers to those transactions in which capital automatically increases without any productive labour. Because usurious transactions at the dawn of lslam were strictly in the form of money lending, it is assumed that the prohibition of usury only applies to revenue gained through money lending. The Islamic scholars on traditions who were also the interpreters of the Qur'an extended the prohibition of usury to some other transactions.

Examples of such transactions are those in which a certain amount of a specific measurable commodity is loaned, and is to be returned with an additional amount13. Therefore, usury in Islam is not limited to lending, which is the exchange of money with interest. To limit usury (unlimited interest without productive labour) the Islamic traditional scholars have prohibited any prepaid (salafi) transaction, either of money or of goods. They have (as a precautionary measure) also prohibited credit transactions of any two asymmetrical commodities14.

Islam Prohibits The Collection And Accumulation Of Gold And Silver

Just as the Qur'an has prohibited usury - the collection of interest without labour resulting in concentration of wealth and diversion of money from the proper economic channels – it has prohibited the collection and accumulation of gold and silver in any form. Because of their clarity and comprehensiveness, the following verses need no interpretation:

“O ye who believe! Lo! many of the (Jewish) rabbis and the (Christian) monks devour the wealth of mankind wantonly and debar (men) from the way of Allah. They who hoard up gold and silver and spend it not in the way of Allah, unto them give tidings (O Muhammad) of a painful doom,” (9:34).

“On the day when it will (all) be heated in the fire of hell, and their foreheads and their flanks and their backs will be branded therewith (and it will be said unto them): Here is that which ye hoarded for yourselves. Now taste of what ye used to hoard.” (9:35)15.

In interpreting this verse ‘Ali ibn Ibrahim Qummi16 reports a tradition from the exalted Imam Baqir (the fifth Imam], peace be upon him, who has said that God has forbidden the accumulation of treasure from gold and silver. He has commanded, instead, that they should be spent in the path of God.

It has been reported from the commander of the faithful, Imam 'Ali, peace be upon him, that to save more than four thousand dirhams, whether or not tax has been paid on it, is considered treasuring. Less than that amount is expenditure.

'Ayyashi17 reports that when the exalted Imam Baqir was asked about this verse, he replied that treasuring means storing more than two thousand dirhams. The difference in the amount stems from the difference in the conditions of life and public economy of different periods. Indeed, whatever is needed for sustenance is expenditure and whatever is stored for the sake of accumulation and treasuring is forbidden based on this verse.

The Surah al-Humazah (The Traducer) with its short, strict, frightening, and reflective verses has explained the moral and social effects of amassing wealth:

Based on these verses, no one can doubt that the most dangerous and hated deed is the amassing of wealth, particularly gold and silver. All the leaders of Islam shared this view. The amassing of wealth among Muslims gained currency only after Muslims deviated from the principles of Islamic teaching. In Islamic books and the Islamic leaders’ collections of the traditions, the dangers of wealth accumulation have been emphasized more than any other.

It is reported in al-Khasal19 that the exalted Prophet, peace be upon him, said: “the dinars and dirhams of your ancestors destroyed them and will destroy you.” In Majma’ al-Bayan20, it has been reported from the Messenger of God, peace be upon him, that “when this verse "They who hoard up gold and silver… (9:34) descended, the Prophet said three times 'May gold and silver disappear!”. This phrase offended his companions. ‘Umar asked: "What forms of wealth should we obtain for ourselves?' He answered: “Obtain a praising tongue, a thankful heart and a faithful and religiously supportive wife.”

It is reported in Kafi 21 that it was asked from the exalted Imam Sadiq, peace be upon him: ‘How much of wealth needs to be taxed (zakat)?' He said: 'Do you mean implicit (voluntary) and explicit (official) tax (zakat)?' He replied: 'Both.' The Imam continued: 'the explicit tax (zakat) applies to each thousand (currency and gold) at the rate of twenty-five. The implicit tax is that you should not keep for yourself when your Muslim brother is in need of it. God has granted you wealth to spend in the manner he has commanded. He has not given it for you to collect for yourself’.”

Abu Dharr al-Ghifari based his opposition to the usurers of the Quraysh and the Arab plunderers who violated the lives and the property of Muslims in the guise of Islam on this verse: “They who hoard up gold and silver...”. Abu Dharr, a great companion of the Prophet who had learned the teachings of Islam by heart, would remind people of the truth and aims of Islam in the streets, bazaars, mosques, and large cities. He would repeat this verse and similar verses and the traditions of the exalted Prophet.

Occasionally, around and inside the glorious castle of the Umayyad governors, he would sing this verse loudly and passionately. One day after his exile from Kufa to Sham [today's Syria) and then to Medina, and before his exile to Rabdha, he arrived at the court of 'Uthman. Sufferings and tortures had affected this weak old man so badly that he could not stand on his feet. 'Uthman did not permit him to sit. While leaning on his staff Abu Dharr saw a heap of money in front of 'Uthman, while the latter's companions were staring at it like vultures.

Abu Dharr: "What is this wealth?"

'Uthman: "It is one-hundred thousand dirhams sent from some of the provinces. I am expecting it to be doubled before I decide what to do with it”

Abu Dharr: '"One-hundred thousand more dirhams or four dinars?"

‘Uthman: “Obviously, one-hundred thousand dirhams.”

Abu Dharr: “Do you remember the night you and I went before the Prophet of God? He was so sad and depressed that he did not notice us. When on the next day we went into his presence we found him happy. When we asked him about the cause of his sadness of the night before and the happiness of that day, he said: 'I had not distributed four dinars of the public money (fay). I was afraid that I might die before distributing it. Now that I have distributed it (and gave it to the needy), I am at peace'."

"Uthman turned to Ka’b al-Akhbar22 who was sitting next to him and said: "Oh Aba Ishaq, what is your opinion about the person who has paid all his taxes? Does he owe anything more?"

Ka’b: "No. After paying taxes, such a person owes nothing even if he accumulates bars of gold and silver.”

Abu Dharr suddenly struck Ka'b's head with his staff and said: "Oh Son of heathen Jewish woman! What right do you have to comment on the laws of the Muslims. Are not the words of the exalted God 'Those who hoard up gold and silver…’ more righteous than yours?”

Provoked by anger, ‘Uthman said: "Oh Abu Dharr! You have grown old and senile and lost your mind. If you were not a companion of the Prophet, I would have killed you immediately.”

Abu Dharr: "Oh ‘Uthman! You are lying. Woe to you! My friend the messenger of God told me, "Oh Abu Dharr! They will deceive you but they will not kill you.” I have enough brains left to remind you of the saying of the messenger of God about you and your clan."

'Uthman; "What have you heard from the messenger of God about me and my clan?"

Abu Dharr: "Well, I heard him say: 'When the family of Abi al-'As increases to thirty they will pass around God's wealth among each other They will make the religion of God a means of treachery and corruption and will turn the servants of God's into their own slaves and servants. They make on decent people and form a party of criminals.''

'Uthman (facing the audience): "Oh, the companions of Muhammad, peace be upon him, have any of you heard this tradition of the messenger of God?”

'Uthman's associates: "No, we have not heard this tradition from the messenger of God."

'Uthman: "Call 'Ali."

The commander of the faithful' Ali, arrived.

'Uthman: "Oh father of Hassan! Listen to what this old liar has to say."

'Ali: "Oh 'Uthman, do not call him a liar! I myself heard the messenger of God say: 'the blue sky and the green earth has not seen a more truthful person than Abu Dharr."

The companions of the Prophet who were present said: “'Ali speaks the truth. We heard the messenger of God say this."

Abu Dharr (crying): "Woe to all of you who are attracted to wealth! Think that I make false allegations about the Prophet. (Then turning his eyes to them) Who is the most righteous among you?"

'Uthman's associates: "You claim you are”

Abu Dharr: "Yes, My teacher, the messenger of God, died in this very garb I have on now. You have established innovations (bid’ah) and God will hold you accountable for them”

'Uthman: "Oh Abu Dharr! Swear by the Prophet of God and tell me the truth about whatever I am going to ask you."

Abu Dharr: "Even if you do not make me take an oath I will tell the truth.''

'Uthman: "Where among all places do you like the most to reside?”

Abu Dharr: "I prefer Mecca, the house of God and the birthplace of his messenger, where l can pray until my death."

'Uthman: "No, l will not honor this wish. Where do you prefer the last to reside?"

Abu Dharr: "Rabdha23 where l lived before I converted to Islam.”

'Uthman: "Leave and go there!” 24

Abu Dharr, one of the early converts and a chosen companion of the Prophet, had the following understanding of the verse "Those who hoard up gold and silver. . ." 25 He firmly believed that a Muslim had no right to amass wealth beyond his needs. In his opinion, if wealth, generally measured in gold and silver, increases beyond the needs it is considered amassment (the word kinz, in Arabic, means to save beyond one’s needs)

He considered the traditions of the Prophet and his other close companions as a confirmation of the spirit of the Qur'an. Others such 'Ammar Ibn Yasir, Miqdad and Salman al-Farsi – who considered ‘Ali as the living symbol of Islam and the guardian of Muslims - were in agreement with Abu Dharr. They would use whatever earnings they had from the public treasury or from other sources to gratify their basic needs and distribute the surplus among needy Muslims. Sometimes they would save enough to cover their households' annual expenses. The caliphs who ruled before the reign of 'Uthman also followed this practice.

The outcast Arabs who were unfamiliar with the spirit and the teaching of Islam came to power during the reign of 'Uthman. Because of their customary desire for wealth, they ignored the traditions of the forefathers (of Islam). They misinterpreted the verses of the Qur'an to the point where even Ka’b al-Akhbar, the newly converted Jew, could formally issue a fatwa (legal opinion) that a Muslim who has paid his dues, the zakat, could accumulate bars of gold and silver!

Abu Dharr and his peers tried to change the situation to conform to the Qur'an and tradition. They tried to persuade 'Uthman to distribute to the public treasury equally among Muslims, regardless of race and class, and to prevent accumulation of wealth. They were voicing the truth because the verses of the Qur'an had penetrated into their hearts and souls and they had understood the true spirit of Islam.

Ka'b al-Akhbar and those like him were proclaiming their own view of truth also. Their understanding of Islam supported the interests of the rich and the powerful! The poor caliph ('Uthman) perplexed by these two opposing views had no opinion of his own. In the end he succumbed to the second group and lost his life for it, leaving the Islamic world in the midst of chaos and turbulence. Even today Muslims are confused between the rulings of the Qur'an and the opinions of the followers of Ka'b al-Akhbar.

It is not surprising that some interpreters like Qurtubi have misinterpreted this Qur’anic verse (to reflect their own views). He says, “This revealed verse concerns the poor Muslim of the dawn of Islam." Does this view truly interpret the verse? Was the Qur'an revealed only for a particular time and a group, to be abrogated once everyone has become economically sufficient? It is as though they neither consider the Qur’an universal nor the Prophet as the “... blessing of the worlds”26

Did not the same poor Muslims lose their faith as their wealth increased? Did not a large number of Muslims around the (Arabian) Peninsula live in extreme poverty while others were becoming rich?

Lawful And Limited Trade

Trade is indeed a medium for distribution of goods produced. A merchant acts as an intermediary in getting the manufactured goods to the consumer. Therefore, trade is one feature of a developed economy and it signifies the level of economic growth of societies. No one disputes the necessity of trade in the economic process in a society. The debate and opinions which have been expressed on the subject in this century are mostly about trade should be free, as it was in the past, or should it be limited to and be monopolized by the government.

These two different views, like those regarding the desire for ownership, clash with each other. The first view concerns freedom, the special feature of private ownership, which according to the collectivists is the source of oppressive capitalism. Although all collectivists (socialists) unanimously reject private ownership and free trade, they do not agree on the state monopoly of every form of trade. Only the communists consider production and distribution should be under the monopoly by the State.

As the history of man and the experiences of the capitalist countries demonstrate, there is no doubt that unrestricted and free trade - like unrestricted ownership – creates opposing classes. Moreover, it results in transgression and deprivation of the majority and unrestricted capitalism. Considering the sinister effects of free trade and unrestrained ownership, is the state monopoly over the means of production and distribution the final solution? Does that facilitate economic growth? Does it promote public wellbeing and happiness and result in equitable distribution?

Once the state has monopolized production and distribution, its bureaucracy has to grow accordingly. Maintenance and administration require large budgets and the livelihood and comfort of many bureaucrats and managers have to be provided for. That will attract most able people to become part of the state. Consequently, no class or nation will require a government:

The State becomes a class in and of itself, comprising bureaucrats and military classes, industrial managers and labourers, and distribution officers whose livelihood and comfort have to be provided for. Since the wages and salaries of these officials are secure, there is no incentive on their part to look for customers and search for local and international markets. Except in situations where the consumer has to purchase goods, an active market will not develop for manufactured commodities. Consequently, both the ability to produce and increase the productive capacity diminishes. As the government cannot generate enough revenue to sustain itself, it has no choice but to constantly increase prices in order to finance its deficit. This in turn means heavy and indirect taxes imposed upon the consumers. It is obvious that changing people's occupations and transferring them (to different places) do not alter their senses and instincts; man is still the same and his instincts are the same too. The result of these changes is to deprive them of their ability and to establish a powerful, undisputed governmental capitalism that sells good at any price without competition, depending on the conditions of the national security and domestic and foreign policies. The end results of a governmental monopoly are mismanagement, lack of supervision, growth of black markets, or a bloated government supervisory and policy apparatus.

Furthermore, considering that nothing is more desirable to a man than his freedom, it should not be restricted unless it violates the rights of others. To deprive a man of his freedom and rights in any form constitutes such an injustice that it cannot be overlooked, whether it is done by a certain class or by the state. Human talents and potentials – the most valuable natural resources - burgeon only in a free intellectual atmosphere and in actual practice.

That is why freedom is the first principle of the Divine creation, enunciated in the missions of the prophets and the Bill of Rights. No one's freedom of action and work should be violated as long as it is exercised within the boundaries of the law. Those economists and theoreticians who consider man solely an economic entity ignore this basic and fundamental principle.

By forbidding private ownership of public and natural resources, prohibiting usury and amassing of treasures (based on the Qur’an) and by establishing and specifying conditions and limits for sellers and buyers in terms of prices and goods, Islamic jurisprudence has allowed trade within the limits of the law. It has forbidden monopoly over production and distribution by a particular group of the State, except when warranted by public interest or special circumstances. The general standards for trade and financial rules are explained in the following verse:

“O ye who believe! Squander not your wealth among yourselves in vanity, except it be a trade by mutual consent, and kill not one another. Lo! Allah is ever Merciful unto you.” (4:29)27.

By pointing out the original conditions of wealth, this verse prohibits any futile forms of ownership and possession and allows trade with mutual consent. The notion of sharing one's surplus wealth “among yourselves" is to remind people of the original and natural condition of wealth. Wealth - whether originating from natural resources or manufactured goods - belongs to all people and should be available to all28. Improper and futile forms of private ownership and individual possessions are not permitted in Islam.

The right of ownership is confirmed only when useful and rational possession takes place. To conclude, right of possession and ownership is limited to useful utilization of wealth. But according to the verse cited above, trade by mutual consent is considered and exception, because although trade has no lasting effect on the value of products, the merchant makes the useful and valuable products accessible to the consumer.

He profits from this activity and there is no fixed limit on the level of his gains. Trade, in general is useful for the economy, people's livelihood, and constitutes a division of labour. In Islam, the conditions imposed on traders, goods, prices and the deals are mostly or entirely derived from this verse. Trades of unproductive nature such as usury, gambling, lottery or trades of goods that are harmful and dangerous to the individuals and the society, and trades that are directly or indirectly imposed are prohibited in Islam.

Trade by mutual consent means a trade in which both sides are aware of and understand thoroughly the conditions of price and goods. Although no transaction can be completed without an implicit mutual consent, there should be a clause in the contract to specify the mutual consent of the parties. In other words, no direct or indirect coercion should be applied. The phrases "your wealth" and "among yourselves” in the verse refer to the consent of the public and the society. Any transaction or trade that harms the society, lacks public consent, or is suspect in the eyes of investors is unlawful.

“And kill not one another,” seems to point to the ultimate result of squandering and unjust possession, because deprivation, class conflict, war and massacre which occur in the society are clear consequences of squandering wealth and harmful or coercive transactions. In another verse, the effect of extravagance and wastage is explained differently:

“And eat not up your property among yourselves in vanity, nor seek by it to gain the hearing of the judges that ye may knowingly devour a portion of the property of others wrongfully.” (2:188) 29.

The statement and purpose of this verse can be understood as follows: Squandering of wealth that originally belongs to everyone is unjust and unnatural. This can continue only by force and pressure brought upon the deprived class. Therefore, (economic) parasites secure the support of the ruling class and satisfy their greed by giving them some of their wealth.

The alliance between the squandering parasites and the ruling class creates a single class aligned against the people. Two classes line up against each other, and the government that is created to administer, supervise affairs and reconcile differences becomes the oppressor and ally of the plunderers. The reality that the Qur’an points out is the basis of a class-conscious government whose aims are amassing of wealth and establishment of capitalism by inequitable possession and squandering of wealth.

In the economic relations of a society, possession and ownership arc legitimate. If transactions and trades operate on that basis, capitalism and social conflict cannot take root. Islamic jurisprudence clarifies the limits of ownership rights in terms of prices, commodities, buyers, sellers, and principles and limits of transactions. Financial transactions are allowed as long as those regulations are observed. The general view of Islam is that freedom should be respected within the framework of law. Laws, of course, are for everyone to observe and arc not the means of securing the rights of certain individuals and groups at the expense of others.

After expounding the rights and duties of individuals and groups, Islam makes it primarily an individual’s responsibility to observe these rights out of faith. Then it entrusts the responsibility to the hakim and the government; Islam requires supervision of government in every matter.

The commander of the faithful Imam 'Ali, peace be upon him, in a decree to the Governor of Egypt (Malik Ashtar al-Nakha'i) states the following regarding merchants and craftsmen:

I want to advise you about your businessmen and industrialists. Treat them well and order your officers to follow the same policy. Whether they be local businessmen carrying on their trade locally, merchants who ply their trade from one place to another, importers and exporters of goods, industrialists and manufacturers, industrial labour, or handicraftsmen, they all deserve sympathy, protection and good treatment. They all are sources of wealth to the country. They provide consumers with goods. Most traders carry and convey these goods across deserts, seas and over open lands and mountains; their consignments are brought from distant lands, often from places which are not easy to approach and where people usually do not care or do not dare to go. These businessmen are usually peace-loving people, not given to mischief, disturbance and seditions. You must look after their interest and must protect them whether they are trading in your cities or towns or travelling over countries conveying goods from place to place.

One more thing about these traders and industrialists is that while treating them most sympathetically you must also keep an eye on their activities. You know they are usually stingy, intensely self-centered, and selfish, suffering from obsession of grasping and accumulating wealth. They often hoard their goods to get more profit by creating scarcity and black market. Such a condition is on the one hand extremely injurious to the public and on the other hand demeaning to the ruler.

You must put a stop to all such practices because the Holy prophet (may the peace of God be upon him and his descendants) has explicitly prohibited such practices. Remember that trade should go on between the purchasers and suppliers according to correct measures and weights, and on such reasonable terms that neither consumers nor suppliers incur losses. But if trades and industrialists carry on hoarding and black-market dealings despite the facilities and good treatment meted out to them, then you must punish them according to the seriousness of their crime.30

This important and firm Islamic decree authorizes occasional intervention by upright governments and rulers in their financial affairs of the community. It particularly emphasizes that government should prevent hoarding and it should control and determine prices.

Apart from the specific injunction derived from the Qur’an the right of intervention by a just Islamic ruler in trade and financial affairs can also be justified by rational and customary principle known as la zarar. This principle recognizes the right of possession, ownership and transaction so far as they do not undermine public wellbeing, or harm the individual and the society. In case ownership and possession are harmful to the individual or the society, punishment must ensue, to be decided by the general customary laws ('arf)31.

Based on this and other principles (i.e., the principal ownership of public resources by the Islamic ruler and the principle of guardianship or wilayah of the just Islamic ruler) the ruler has the right of possession ion over public resources. He also can take over private wealth if public interest warrants that. If the prescribed and designated taxes and duties are deemed insufficient for public wellbeing, he is authorized to institute other taxes and duties.

Obeying the Islamic ruler - who by virtue of special conditions, is designated directly or indirectly as the guardian of affairs (wali al-amr) - is a legal obligation. His power to possess exceeds the individual's right of ownership as well as the right given to an elected official. The authority of the Islamic ruler and Islamic government, however, does not exceed the laws and the principles of public wellbeing, because the right of ownership is also natural and intrinsic within the framework of laws whose outcome is the right to possess and distribute. Disruptions in distribution are the result of unlimited, unrestricted, and unregulated ownership.

Therefore, from the Islamic point of view, distribution is the owner’s right. Why should legal and limited profit­making exclude this natural right? Only unlimited profiteering and ownership lead to maldistribution, which in turn invalidates the right of the real owner to ownership and possession. Can the nature of ownership and maldistribution – existent in absolute capitalism - be an excuse to invalidate the ownership and the rights of the real and legal owner (no matter how one defines this right)?

If the right to exploit and acquire fruits of one's labour is confirmed for a particular group of individuals granted the freedom, the right of possession and distribution is a natural extension of that right; just as it is unnatural for capitalists to take over the goods of those individuals, it is unjust and unnatural for the state to take over the right of distribution and thereby negate the general freedom. The right to freedom means an individual's right to possess his goods acquired through labour. According to Islam, monopolistic control over the production and distribution by a group or a special class, whether capitalists or the ruling class is unlawful and unjust. Such controls should be allowed only within limits that ensure public wellbeing and whenever it that is required to prevent penetration by special groups and monopolists.

Considering the limits (hudud) on private ownership, conditions of transaction, and trade, that Islam places alongside human freedom, and considering the exclusion of certain commodities from transactions, oppressive and ungraceful capitalism has no chance to grow. To preserve complete cooperation and proper distribution and to meet public demand, Islam has instituted various types of taxes, e.g. direct taxes (obligatory for Muslims). Depending on the nature of the wealth and the owners' condition, each of the following taxes has a special designation and its own rationale. Some of them are fixed such as zakat (alms), and khums (one-fifth); some are variable such as kharaj (land tax), jizyah (minority tax) and kafarah (penance tax).

Zakat: it is a fixed tax applied to productive capital and cash, and is used for special purposes. Zakat is levied on agriculture products, domesticated animals, cash and precious metals (money, gold and silver).32 Zakat Fitr is another form of zakat that is incumbent upon every individual Muslim on the annual feast of Eid-ul Fitr33. Its amount and conditions are explained in detail in the books of jurisprudence.

Khums: It is a tax amounting to one-fifth levied on gains, e.g. the annual net profit obtained from any business, discovered treasures, gains from ocean diving, mining, and the unclaimed wealth of an unknown owner.

Among the sources of revenue these two taxes are general and permanent34.

Kharaj: It is the amount of tax taken from the produce of the land or the value of the land itself. This tax applies to taxable lands (anfal and fay). Its amount is determined by the Islamic government with the consent of the workers, farmers and landowners in conformity with public interest. This tax should first be spent to revitalize lands and to improve the conditions of the farmers.

The most comprehensive Islamic document regarding kharaj, the significance of the work performed by farmers in the community, and their rights in Islam are outlined in the decree of the commander of the faithful Imam Ali, peace be upon him, to Malik al-Ashtar, when the latter was appointed the governor of Egypt. The following are some excerpts from the decree:

So far as the collection of revenues and taxes is concerned you must always keep in view the welfare of the taxpayers, which is of greater importance than the taxes themselves. Taxes and taxpayers are the original source on which the wellbeing of your subjects depends; a State really lives upon the revenues collected from the taxpayers. Therefore more importance should be attached to the fertility of land than to the collection of taxes because the actual tax-paying capacity of people rests upon the fertility of the land. A ruler who does not pay attention to the prosperity of his subjects and the fertility of the land but concentrates only on collection of revenue, lays waste the land, ruins the State and brings destruction to creatures of God: his rule cannot last long.

If the taxpayers complain to you about heavy taxation, of any accidental calamity, vagaries of the monsoon, scarcity, inadequacy in the means of irrigation, floods or destruction of their crops due to excessive rainfall, and if their complaints are true then reduce their taxes. The reduction should be such that it provides them opportunities to improve their conditions and ease their circumstances.

Decrease in the State income due to such reasons should not depress you, because the best investment for a ruler is to help his subjects at the time of their difficulties. They are the real wealth of country and any investment in them, even in the form of reduction of taxes will be returned to the State in the form of prosperity of its cities and improvement of the country at large. At the same time, your will be in a position to command and secure their love, respect and praises along with revenues...

Remember Malik, if a country is prosperous and of if its people are well to do then it will happily and willingly bear any burden. The poverty of people is the actual cause of the devastation and ruination of a country, and the main cause of the poverty of the people is the desire of its ruler and officers to amass wealth and possessions whether by fair or foul means. They are afraid of losing their posts or positions and sway or rule, and want to make the most during the shortest time at their disposal. They never learn any lesson from history of nations and never pay any attention to the orders of God35.

As the following charter shows, on the basis of land reform and the distribution of other natural endowments (as was shown earlier in the discussion of land ownership and its sources) Imam ‘Ali, peace be upon him, has stated several fundamental and important economic and social matters:

1. Lands and public resources distributed by a just Islamic government to agents according to need and ability should be utilized for public welfare;

2. Before they initiate kharaj (land tax), governors and persons in charge should try to improve the wellbeing of the taxpayers;

3. Producers of wealth make up the society. Unless their wellbeing is secured the society will not prosper;

4. The revitalization of land ought to always be given priority over kharaj;

5. Kharaj without revitalization destroys the country and brings about the (economic) downfall of its people;

6. Once the kharaj has been imposed, if the peasants and farmers complain of heavy burden or are in need of assistance for the improvement of land and/or other reasons, they should be granted a reduction in the amount of the kharaj to help them improve conditions;

7. Reduction of taxes on land and its produce would eliminate the distinction between the government and the people, and it would enhance the popularity of an Islamic ruler. It would help improve the society and stabilize the government;

8. Justice for producers translates into an enormous source of spiritual power and support for the government. In time of crisis, this power is stronger and far more reliable than any other material powers; in such circumstances every hardship and imposition is bearable;

9. Poverty, destruction and lack of means of production among producers result in destruction of land;

10. (If there is) poverty and destitution among producers it is because they think of their rulers as a class, interested only in exploiting the people and amassing wealth, and they do not feel secure about their own life and prosperity.

It should be noted that this decree - which is truly a spring of light in the dark centuries - was issued when the world was engulfed in the darkness of injustice and oppression of the peasants and producing classes. That slaves and serfs were the only sources of revitalization was true the world over. Not only had they no rights over their own labour, they had no right over their own families. All they had were hunger, whipping, and Black Death.36

The commander of the faithful Imam Ali's fifty-first letter was a circular to all tax collectors. In that letter, after the usual advice and eloquent guidance, he states:

Treat the taxpayers equitably and justly and think over their wishes with patience and kindness, because you are the taxpayer's paid treasurer, representative of the people, and the officer acting on behalf of higher authority. Do not force anybody to forsake his requirements and do without his necessities (so that he may pay his taxes). In collection of taxes and revenues do not sell their winter and summer clothing, their slaves or such of their animals as are of service to them, do not resort to whipping; do not touch their property, be they Muslims or non-Muslims: but if you find armaments or weapons among non-Muslims or their horses which can be used in war against the State, you may confiscate them37.

Being a land tax, kharaj, is collected from both Muslims and non-Muslims based on the requirements of public welfare the exercise of proper judgment.

Jizyah: It is the only tax required of non-Muslims who live under the jurisdiction of Islamic laws. It is levied specifically on People of the Book, those who adhere to a divine religion and believe in His prophets. The property and family of the People of the Book are secure and protected in Islam, provided they pay jizyah, respect Islamic laws, support the Muslims, and do not spy for the enemies of the Muslims.

They have equal rights and duties as other Muslims. No witness or proof is necessary for one to be recognized as a member of the People of the Book. The mere claim by the person is enough unless proven otherwise. According to the predominant view, women, disabled people, and juveniles are exempt from paying this tax.

The Imam or the just ruler will determine the amount of jizyah based on the ability of the eligible person to pay and the requirement of public welfare. Although a zimmi (person obligated to pay the jizyah) - whether residing inside an Islamic country or outside - enjoys the same gifts and protections as a Muslim does, he pays less tax than a Muslim, who pays in various forms (zakat, khums, and Kaffarah).

Kaffarah: In Islamic jurisprudence, Kaffarah is the tax paid in order to redress the effects of certain sinful acts e.g. financial reparation for committing murder, breaking of obligatory fast, a promise, an oath, or a vow. These are discussed in detail in the books of jurisprudence.

If an Islamic government, in its proper meaning, ever came to existence, it would be responsible to collect and spend taxes. During the time of the early caliphs, particularly the government of the commander of the faithful Imam 'Ali, peace be upon him, tax collectors were selected from among pious and qualified people. Consequently, they enjoyed the respect of al the people. Moreover, they did not collect revenues beyond what was obligatory. The most important and interesting aspect of Islamic regulations (pertaining to tax collection) is that the amount of the tax is left to the discretion of the people. They must pay whatever they feel they are obligated to in accordance with the dictates of Islamic faith and duty.

An example of this unique method of collecting taxes is shown in Imam 'Ali's twenty-fifth letter sent as a circular to all tax collectors. A portion of the text of the Imam's letter to the revenue collectors is as follows38:

Do not give up fearing God who has no coworker and partner. Do not let Muslims grieve and lament (over their lot of having you as their ruler) and do not approach them in a way as to make your approach hateful to them. Do not tax them more than what is actually due by them to God.

When you reach a group of people (tribe or village to assess and tax them, stay only at their watering place (a well or water hole is the most convenient place to stay in desert regions) and do not stay in their houses.

Then go to them maintaining your dignity and prestige and when you reach among them, wish them peace and blessing of God and show due respect to them. Tell them that the Caliph of God has sent you to collect from them the dues of God. Ask them whether they possess enough means to pay dues to God that you may gather them and pass them on to his Caliph. If somebody tells you that he does not have enough wealth to pay taxes do not worry him and accept his plea. If anyone tells you that he is in a position to pay at the poor rate follow him to his house, field, or pasture.39 But do not frighten him or make him nervous and do not behave with undue harshness or tyranny. Then accept the gold or silver that he offers.40 If he has cows, bulls, goats, and camels do not enter the herd without his permission, because most of it belongs to him (it is not part of zakat). If you have to enter the herd do not enter like one who is going there to take possession of the cattle. Do not tyrannize the owner, do not frighten the cattle and make them run hither and tither. Do not make the owner feel anxious or sorry for them. Then divide the herd into two parts and allow the owner to select the one for himself. If he selects one part for keeping do not object to it. Again, divide the part which he has left: for the share of zakat to be selected from out of these two parts again allow him to select the lot which he want to retain for himself. Never object to his selection (because it is the assessor who is dividing them in equal lots, therefore the selection between the two lots should naturally rest with the owner). Continue like that till you arrive at the lot that constitutes the dues of God (zakat), and then take possession of it. If in spite of all the precautions the taxpayer thinks the division was unfair and unjust, then mix the whole lot and go through the process once again as I have already explained to you till you arrive at the dues of zakat to the satisfaction of everybody concerned41.

This command represents a perfect example of the respect for the freedom and the rights of taxpayers and for their discretion in deciding the amount of taxes. From the Islamic viewpoint the government and its agents are representatives and treasurers of the (Muslim) community (ummah) and not the owners with absolute possession of people's lives and property. For this reason people willingly and faithfully trust the government with their lives and wealth to be utilized for public wellbeing.

It is not surprising that some people consider type of tax collection imaginary and idealistic. Most of the world's population live in societies whose governments rule over their bodies and not their hearts and minds. Regardless of the amount, people consider taxes as heavy burdens imposed upon them by force of the whip and bayonet.

However, the same people would willingly, generously and freely pay taxes and make charitable contributions out of faith and belief. People contribute in all parts of the world, including Iran, for ideological reasons and out of religious conviction which has equal, if not more, of economic, and social impact than governmental taxes. Scientific, religious and health institutions, charitable organizations, schools and churches and missionary organizations are funded and established by such charitable wealth.

If the government of Iran and other countries of the world were to represent the faiths of the people and public conscience, their revenues and social development will proceed smoothly and unhindered like the human body and its various organs.

The Islamic Tax Revenue – Its Broad Base And Dynamism

Because Islamic socioeconomic injunctions are not being fully implemented, Islamic taxes and charities with their special titles and conditions may seem unsuitable. The economists who formulate governmental taxes and laws are special groups whose training is limited to specific times and groups. In accordance with their prejudices and limited views on the relationship between the government and the people, they formulate laws that are generally rigid, limited and lack dynamism, flexibility and diversity.

As social and economic conditions change, shortcomings and asymmetry along with the consequences of their practices on the thoughts and life of the people will begin to emerge. Governments will be forced to modify and change the laws with the help of other economists and experts. The damage caused by the formulation and abolition of laws concerning fundamental economic and social issues cannot be easily measured.

Given the multiplicity and conditions of taxes and revenues in Islam, it is readily understood that the principles of the laws of Islam in this regard cover various groups, revenues, and expenditures. Because of their special link to the heart of the people, regardless of class, and because tax amounts are (effectively) left to the discretion of the public, these injunctions enjoy dynamism and a distinct diversity.

Therefore, any change in the general economic conditions or in class opportunities do not result in neither decreased revenues nor diminished economic growth. They also do not impair class solidarity. Moreover, prompted by independent reasoning (ijtihad) and public interest, an Islamic ruler has the power to impose taxes or modify tax rates in exceptional circumstances42.

These injunctions are required when for the first-time financial relationships re being established between the people and the State or among the people. After these are established, charitable distribution (infaq) - prerequisites to faith and piety - constantly and without any limit will guide transactions. While charity, except in the aforementioned cases, is not obligatory, the Qur'an as well as traditions have repeatedly emphasized that it is almost an obligation. There are few words in the Qur'an that have been mentioned as frequently as infaq (or acts derived from it).

According to the Qur'an, charitable distribution is the special attribute of a pious person:

“And spend of that We have bestowed upon them” (2:3).

“And in their wealth the beggar and the outcast had due share” (51:19):

It is also the special character of those who pray:

“And in whose wealth there is a right acknowledged” (70:24).

“for the beggar and the destitute” (70:25).

Social assistance and cooperation exceed charitable distribution in an environment where perfect Islamic training exists and faith and piety flourish. In sharing its wealth and livelihood, a society becomes a family. It materialized at the dawn of Islam: the prophet concluded a brotherly treaty with selected Meccans who migrated with him to Medina and with Medinites who helped him. They shared everything they owned – houses, wealth and livelihood.

Islamic Training Environment And Relationships

The complete Islamic training environment and relationships are shaped by the totality of Islamic beliefs, ethics, and practical teachings. These relationships are based on the spiritual aspects of man. Because man develops and matures each day, the relationships, although permanent in form, also evolve: economic relationships do not stay permanent either.

Individuals who have special aims and goals give shape to the environment. Later they complement one another and form a social unit by adopting special duties and relationships. Islamic jurisprudence is a manifestation of these duties and relationships. The principles of Islamic fiqh (jurisprudence) are divided into two separate but interrelated compartments; ‘ibadat (devotional acts] and mu’amalat (business law].

‘Ibadat comprises actions performed only to please God. The intention of pleasing God constitutes the spirit and the main condition of these types of acts. Mu'amalat are actions related to individuals interacting with one another and with the society. They should be performed according to special conditions specified for each act.

The intention of pleasing God in acts and ‘ibadat elevates the mind from an egoistic and self-profiting level to one where it conforms to God’s desires which synonymous with the general good. The effect of repeating an 'ibadat is the transformation of one's worldview and actions. Some of the ‘ibadat appear as forms of worship i.e. daily prayers, fasting, and the Hajj. Some others pertain to social, economic, or health matters (taharat) i.e. zakat, khums, jihad amr bil maaruf (enjoining good) and nahy anil munkar (prohibiting evil) and wudhu’ (ablution).

Directly or indirectly, 'ibadat influence other relations: they strengthen desires consciously and deepen the understanding of one's responsibility before others and the society, one's awareness of his own losses and gains, and one's legal accountability. Finally, they take man to a higher human consciousness. On that level man does good for its own sake, provides services for the sake of doing good, and spends his wealth in order to elevate himself. And all this is done for God and because of His wise and eternal desire. One cannot define intellectual and social progress in any other way. The Qur’an elaborates the attributes of those who possess spiritual growth in the following verse:

“And know that the messenger of Allah is among you. If he were to obey you much in many a matter, ye would surely be in trouble; but Allah hath endeared the faith to you and hath beautified it in your hearts, and hath made disbelief and lewdness and rebellion hateful unto you. Such are they who are the rightly guided”.43 (49:7).

From Each According To His Ability And To Each According To His Need

The phrase 'from each according to his ability and to each according to his need' is the first slogan of Islam and the last one of socialism’.44 From the totality of Islamic injunctions and teachings on ownership, this principle can be seen to be of certain validity. Ownership, possession and utilization are based on work in the general sense, and distribution is based on need. This principle is based on the injunctions that enumerate the prerequisites of the Islamic economic relations.

Following these economic relations, in the last phase purification and consolidation of faith as well a social solidarity should materialize. The following slogans in such a community should prevail.

“The believers are naught else than brothers. Therefore make peace between your brethren and observe your duty to Allah that haply ye may obtain mercy” (49:10).

“ ... but help ye one another unto righteousness and pious duty. Help not one another unto sin and transgression, but keep your duty to Allah. Lo! Allah is severe in punishment.” (5:2).

“Who believe in the Unseen, and establish worship, and spend of that We have bestowed upon them;” (2:3).

“Go forth, light-armed and heavy-armed, and strive with your wealth and your lives in the way of Allah! That is best for you if ye but knew.” (9:41).

The verses of the Qur'an, Islamic injunctions, and the conduct of the early Muslims enumerate these phases. The social and mental evolution of the early Muslims in Mecca and Medina present an actual picture of the evolving feature of the relationship among Muslims.

• 1. Historically, it is certain that toyuldari preceded money and usury. However, there is no evidence to prove that capitalism (bourgeois) has followed feudalism and has developed from it in all places. The source of western capitalism was, first feudalism, and then money, gold and silver that were obtained through usury and plunder of others. The discovery of America and the flow of gold and silver from that land became the source of local tyranny and the base of bloodthirsty foreign colonialism.
• 2. The revocation of the practice and the formulation of the law limiting usury are credited to Solon (638 - 558 B.C.) a Greek sage and lawmaker.
• 3. “If you lend money to one of the poor neighbours among my people, you should not act like an extortioner towards him by demanding interest from him” (The New American Bible ‘Exodus’ XXXII: 24): Do not exact interest from your countrymen on a loan of money of food or of anything else on which interest is usually demanded. You may demand interest from a foreigner, but not from your countryman, so that the Lord, your God, may bless you in all your understandings on the land you are to enter and occupy” (The New American Bible ‘Deuteronomy’ XXIII: 20-21).

  In these ordinances usury has been forbidden among the children of Israel. Taking interest from non-Jews is allowed. This permission, “You may demand interest from a foreigner,” conforms with the Jewish mentality. Based on this, they scattered among other nations to suck the economic blood through usury and other ignoble acts. Obviously, parasites either live on the body of other living creatures or feed themselves on surplus food.

• 4. Jesus says in the Bible: “Love your enemy and do good: lend without expecting repayment. Then will your recompense be great. You will rightly be called sons of the Most High, since He Himself is good to the ungrateful and the wicked. (‘Luke’ VI:35).
• 5. It is a reference to Convention Nationale operated from September 21, 1792, to October 25, 1795. It was called upon to frame a new constitution for France (tr).
• 6. Some verses in the Qur’an describe the special character and profession of the Jews:

  “And thou seest many of them vying with one another in sin and transgression and their devouring of illicit gain. Verily evil is what they do.” (5:62).

  “And of their taking usury when they were forbidden it, and of their devouring people's wealth by false pretences, We have prepared for those of them who disbelieve a painful doom.” (4:161)

• 7. See note 78, above (tr).
• 8. In this verse usury in the form of compounded interest has been forbidden. It warns on two occasions (using the word attaqu twice) and declares its observance as a path to salvation.
• 9. The vices of usury, in comparison to other trades, can be summarized as follows: (1) Usury runs counter to the principle of exchange, whereby each individual exchanges his products with money or other commodities. (2) Through the power of his capital and money, the usurer attracts public wealth for his own. Capital concentration in the hand of the usrurer deprives the other classes of their capacity for production and their spiritual (human) capital. (3) With the spread of usury, the foundation of natural production dries up and the economic growth, which is the foundation of social and intellectual life, is crippled. (4) Usury causes conflict, animosity, and class wars that destroy societies. (5) The usurer, because of his inaction, and other, as a results of their needs, are hindered from spiritual and intellectual growth.

  As a result of these harmful effects in the societies where usury is practised, spiritual and economic independence, social responsibility and understanding are destroyed. Such societies are not able to gain independence and stand on their own feet.

• 10. In those days, usury was considered the same as contract, although the nature of usury and its impact does not resemble that of a contract. To contract means to possess a commodity based on special conditions, whereas in usury the principal and and interest remain with the lender. Even now, some Muslims think of usury as leasing, although the latter is a special contract and its conditions differ from those of usury. Leasing pertains to usage without any liability for the lessee - except in case of damage - whereas the debtor in a usurious trade should return the principal capital and the specified interest. It is not similar with partnership (murabahah) either. In partnership, gain or loss is shared by both sides.

  Therefore, usury is not similar to any other contract or transaction in terms of its nature, implications, or the commodity. In usurious transactions, the commodity is generally the money. The intellectual and practical growth and independence of any individual in any society are based on proper economic contracts and transactions through which production and distribution are regulated. Therefore, usury disrupts the foundation, independence and growth of the individuals and community. The following verses show the relationship between economics and intellectual and social independence:

  “Give not unto the foolish (what is in) your (keeping of their) wealth, which Allah hath given you to maintain; but feed and clothe them from it, and speak kindly unto them.” (4:5).

  “The day when (all) mankind stand before the Lord of the Worlds?” (83:6).

  “Those who swallow usury cannot rise up save as he ariseth whom the devil hath prostrated by (his) touch. That is because they say: Trade is just like usury; whereas Allah permitteth trading and forbiddeth usury. He unto whom an admonition from his Lord cometh, and (he) refraineth (in obedience thereto), he shall keep (the profits of) that which is past, and his affair (henceforth) is with Allah. As for him who returneth (to usury) - Such are rightful owners of the Fire. They will abide therein.” (2:275).

• 11. In Islam, proper transactions are above all based on labour and production. Because usury has no relation to fruitful labour and production, it is an improper transaction. Usurious economy leads to annihilation. The opposite of usury is charity (sadaqa). Charity means distribution of lawful (halal) wealth to the needy and for the sake of God. The intellectual and physical powers of the needy begin to flourish and the social relationships are strengthened. As the usurer sucks the blood of the productive and the needy classes and weakens their hands and feet, which are for managing their lives, growth, independence, the economy diminishes. Charity, good economic relations, kindness, and care help the individual, the society and the economy to grow:

  “Allah hath blighted usury and made almsgiving fruitful. Allah loveth not the impious and guilty.” (2:276)

• 12. By ‘war’ in the above verse, the Qur'an means an action different from other forms of Islamic wars and revolutions.
• 13. Measurable commodities generally are those needed by everyone i.e foodstuffs. More attention is paid to their measurement. There is usually an equivalent amount of human labour and energy in two measurable and equal commodities of the same type.
• 14. Prepaid transaction means selling a commodity with its delivery date set in the future for cash price (at a lower rate). Credit transactions means receiving a commodity for a future payment (with some interest). Prohibition of these types of transactions in which a period of time is set as a condition pertains to the fact that a price is set on time (which belongs to no one). “One should not defer instalment.” There is no consensus among the jurists on the prohibition and invalidation of these types of transactions. The preferred opinion of Imami jurists is what was just discussed. They consider the revenue gained on capital invested in work and production as interest. And they see the automatic increase or the attraction of other’s wealth without any labour as usury.

  “That which ye give in usury in order that it may increase on (other) people's property hath no increase with Allah; but that which ye give in charity, seeking Allah's Countenance, hath increase manifold.” (30:39).

  Usury in the Qur’an is compared with trade (bay’) and means increase in wealth from another’s wealth without proper trade and transaction.

• 15. The verse warns believers against two groups. One consists of the worshippers who - under the banner of religion - take advantage of others and wrongly use their useful labour and production. They close the path of God to people in the guise of religion and God’s representation. The other group consists of greedy people who store public wealth and capital for their own. The Qur’an expresses the same opinion about these two groups – the pseudo-religious and wealth worshippers – because of the cooperation they have with one another and the damage they do to life, economic and intellectual independence, and spiritual and material capability of the people.

  The history of Western lands in the Middle Ages is a clear witness to the cooperation between these two groups and their spiritual and material harm and injustices. The fire of their greed and selfishness rooted in history is still aflame. Deception, oppression, and lies, despite their piety and call to God, are clearing their actions and behaviour. Any farsighted person can see the flame of fire in the hearts of these internally damned groups on the Day of Judgment before God. One sees the invalidity of their claims written on their foreheads.

• 16. ‘Ali ibn Ibrahim Qummi is one of the early commentators of the Qur’an. The year of his death is not known but he was still alive in 306/918-19 (tr)
• 17. Muhammad ibn Mas’ud Ayyashi al-Samarqandi is one of the early commentators of the Qur’an. He was also well-versed in jurisprudence, medicine and astronomy. He lived in the 3rd/9th century.
• 18. Following these verses, the Qur’an expounds on the hell fire and the punishments that awaits this group, and informs us of a hell that destroys and humiliates them. The fire that started from within (their heart) and outside, will inflame so much that all paths to salvation will be closed to them. Where does this punishment (to be put away and to be shattered) come from? It comes from the people’s acts who - thinking that wealth is the source of securing livelihood - do their utmost to amass wealth. They do that to the point that their use of it is limited to merely counting it. (The end of wealth lovers is to be happy with counting ad measuring their wealth). Relying on the power of their wealth, they consider themselves more privileged than their superiors and others. They humiliate others with defamatory insinuations.
• 19. This is another important work by Ibn Babuya. See also Note 59.
• 20. This is an important commentary and interpretation of the Qur’an among Shi’i Muslims. It is by Fadl ibn Hassan Fadl Tabarsi (d 548/1153) (tr).
• 21. See also Note 59.
• 22. Ka’ab ibn al-Akhbar was a Jewish scholar who had converted to Islam. He had become a companion of ‘Uthman, had become rich out of the Muslims’ public treasury and expressed opinions about Islamic principles.
• 23. Rabdha was a small town about three miles outside of Medina. There is no trace of it today.
• 24. The council to the Caliph, headed by Marwan ibn Hakam, an Ummayad aristocrat and an infamous Muslim, voted in favor of exiling Abu Dharr. It is reported by Ibn Abbas that the following command of ‘Uthman’s was publicised. “No one is allowed to see him (Abu Dharr) off or talk to him”. Marwan and a group of guards took Abu Dharr out of Medina. The commander of the faithful, ‘Ali, his two sons, Hasan and Husayn, peace be upon them, ‘Ammar and ‘Aqil, went out of Medina to see him off.
  When Imam Hasan went to talk to Abu Dharr, Marwan shouted, “Oh Hasan, do you know it is forbidden to talk to him? If you did not know, you should know now.” ‘Ali struck Marwan’s horse with his whip and shouted, “Away, May God send you to the fire of Hell.” Marwan, shamed and angry, went to report the incident to ‘Uthman. People said farewell to Abu Dharr. Then ‘Ali in his farewell said:

  “O Abu Dharr! Since your indignation and anger against the enemies of God was for the sake of God and to secure his pleasure, you may rightly expect His Blessing. People are afraid of you because they will lose their worldly possessions and positions (on account of your true interpretation of Islam). You were afraid of them because you thought that Islam would suffer on their account. Now leave with them what they were afraid to lose on your account (vicious and sinful worldly possessions and power) and take away in your safe custody that which you were anxious should not suffer at their hands (the true teachings of Islam). In fact, they are really and truly in need of that which you were taking away with you (peace and blessings bestowed by religion) and you can very conveniently do without that which they want to hold at any cost (worldy power and wealth), and in near future (on the Day of Judgment) you will know who has been benefited by this transaction and who is being envied for this gain.

  Even when the doors of Heaven and earth are closed against a man, if he sincerely and piously prays, the all-Merciful God will confer upon him Blessings of both the worlds.

  Abu Dharr! Love only the truth and justice and hate only falsehood and impiety. Impious people will befriend you only when you accept their ways, and they will take you under their protection if you enter their fold.
  (Nahjul Balagha, Sermon 133, p. 99)
  Then he told his two sons: “Say farewell to your uncle”

• 25. Abu Dharr converted to Islam when Muslims were few and wre constantly were and persecuted by the Meccans. He was the first among the Arab tribesmen to accept the call of Islam wholeheartedly and to declare his belief without any fear of the Qurayshi strongmen and tribal members. The masses of people generally, and the bedouin particularly, submit to power. That was the reason that after Islam gained power the bedouins converted to God’s religion in large groups. Abu Dharr, however, was the only one among the tribesmen who accepted Islam as soon as he heard its call despite the poverty and weakness of the Muslims. It is reported that he had already rejected polytheism and the customs of the Age of Ignorance (jahiliyyah) by the power of his own reasoning and intuition, and had turned to monotheism and the worship of God.

  ‘Abdullah ibn Samit reports that Abu Dharr had told him “Oh my brother! I had been praying three years before I met the messenger of God.” When Abu Dharr was asked towards which direction, he had been praying he answered, “(I prayed towards) any direction God directed me.”
  Abu Dharr was a distinguished person of a rare quality among Muslims. The messenger of God had this to say about him. “God bless Abu Dharr. He will live alone, die alone and be resurrected alone.” He could have had anything he desired had he compromised and remained silent a little. He died in exile in the middle of the dry burning desert, hungry and without a burial shroud. His helpless daughter left his corpse by the side of the road. On their way back from Mecca, Ibn Mas’ud and his companion prayed for him and buried his body. He died in such a miserable state but after such (an exemplary) life. The flame of his faith and his quest for justice inspired a bloody revolution which at first destroyed the Caliph (‘Uthman) and gave rise to ‘Ali’s revolutionary government.

• 26. Qur’an: “We sent thee not save as a mercy for the peoples.” (21:107).
• 27. Since feeding and consuming are the most important and complete manifestation of possession, its denial means a negation of all rights. Moreover, its negation encourages more consumption. Wrong is the opposite of right. To squander means consuming in an unprofitable and wasteful manner. The apparent exception of trade by consensus (in the verse), similar to all exceptional clauses, does not change the nature of the general rule (of not squandering one’s wealth). (Squandering, by consent, although permitted in the verse, is squandering anyway. Therefore, even the exception of trade – transaction by consent – is included in the general rule of not squandering wealth). If we do not consider squandering and wasteful consumption, even on revenues generated by trade, the exception violates the general principle of not squandering.
• 28. The short phrase “your wealth among yourselves” points to the two levels of man’s desire for objects. The first level refers to man’s attachments to the intrinsic value of objects; whatever is needed to satisfy necessities have economic value for man. Only man in his relation to other things and creatures develops a desire for ownership. Their necessity creates the attachment in man. Whatever satisfies man’s need or has desirable effect on man’s apparent and innate sense gains economic value. If man did not exist, this economic value would not make sense. Because of man’s existence, colours, tastes and pleasant sounds that exist in nature and those that are manufactured gain value. None of these desired objects belong to a special individual or group. Everyone has a share in them.

  The second level refers to man’s desire for objects following the formation of communities and the emergence of transactions. Wealth becomes a means of transaction. If one wants to possess something or carry on trade, he should somehow transform the commodities. Through his labour stored in the object, he enjoys the right of possession. “Among yourself is vanity” (in the verse) refers to the first level of desire for wealth. Wealth in the second level becomes property and is based on legal rights.

• 29. This verse points to two important phases. The consequence and logical conclusion of squandering will be the formation of a special class from the squanderers in alliance with rules that plunder the people. The rulers deviate from their duty and become a special capitalist class. Squandering turns into tyranny and oppression. Solidarity and absence of class distinction, which “your wealth” refers to, changes to “portion” and “property of people” as two distinct classes.
  Some interpreters of the Qur’an take “vanity” to be synonymous with tyranny and usurpation and take “rulers” as judges.
• 30. Nahjul Balagha, Letter 53, p. 255
• 31. The principle of la-zarar is derived both from reason and scripture. It is reported in Usul-Kafi, as well as Tahzid, who reports from Ibn Bakir, who reports from Zorara, who reports from Imam Muhammad Al-Baqir (the fifth Shi’i Imam), that: “Samara ibn Jandah had a date palm in the courtyard of an Ansar’s home. Without prior permission, he occasionally would enter the courtyard to check his tree. The Ansar asked Samara to seek permission before entering the courtyard, but he ignored the request. The Ansar appealed to the Prophet. He summoned Samara and told him about the appeal. Samara said: ‘Why should I ask permission to check my own tree?’ The Prophet said: ‘Sell your tree tree to the Ansar at a price higher than its real value.’ Samara did not consent. The Prophet then said: ‘You are a harmful person.’ Then he turned to the Ansar and said: ‘Cut his tee and give it to him.’ Then added: ‘Islam does not permit harming one-self nor does it permit inflicting harm on others.”

  This tradition is reported in different phraseologies, but in general there is no disagreement on the content. Ibn Athir in Nahaya has offered different parallel definitions to show the difference between zarar and zirar, Zarar means one-sided harm, zirar means mutual harm; zarar refers to primary damage, zirar secondary and penal damage; zarar applies to interest, zirar does not. Some consider zirar an emphatic form of zarar.

• 32. The conditions, taxable items, and minimum amount of zakat is explained in Islamic jurisprudence. The jurists have considered taxable items as follows: The four grains (wheat, barkey, raisins and dates); the three grazing animals (sheep, cows and camels); and currencies (money, gold, and silver). Paying zakat for other agriculture products or commodities is a desirable (mustahab) act. Some jurists, eg Ibn Babuya, considers zakat obligatory on merchandise also. To secure the public treasury, men of opinion have left the establishment of zakat on other items, not designated in the law, to the discretion of individual jurists.

  Although the Qur’an explicitly repeats the obligatoriness of zakat and the areas for its expenditure, it has not expounded the taxable item. Considering the farsightedness of the Qur’an and the designation of traditions and reports to special people and environments, the path of independent reasoning (ijtihad) is open for undecided issues and necessities.

• 33. All Muslims regardless of sect, celebrate the feast of Fitr. It is the celebration of the completion of the fasting month, Ramadhan, the ninth month of the Islamic lunar calendar.
• 34. The jurists are unanimous on the principle of khums but do not agree on the way in which it should be used. The Qur’an’s basis for khums is:

  “And know that whatever ye take as spoils of war, lo! a fifth thereof is for Allah, and for the messenger and for the kinsman (who hath need) and orphans and the needy and the wayfarer, if ye believe in Allah and that which We revealed unto Our slave on the Day of Discrimination, the day when the two armies met. And Allah is Able to do all things.” (8:41).

  The verse, unlike that about zakat has explicitly spelled out the way khums should be spent. The Sunni jurists hold the opinion that the verse refers only to spoils of war. The Imami jurists, however, have extended it to other profits and gains. The Imami jurists base their opinion on some traditions, but they emphasize the meaning of the word ghanimah meaning ‘take’ and the phrase “min shay’” meaning “from whatever it is” in the verse. For the khums the order of priority in spending is as follows: God, the messenger, the kinsmen, and then others.

• 35. Nahjul Balagha, Letter #53, pp 253-4.
• 36. George Jordaq in his first volume of the book Sout al-‘adala al-insaniah (p. 204), quoting this decree states: “Even though expressed many centuries ago, ‘Ali’s view on the condition of lands, their development, and the role of the state in the welfare of the workers and farmers is so correct that it is being proven by social and economic sciences…. For many centuries no special attention had been given to man and his work. For many centuries rulers and their companions took advantage of the miseries of peasants. This situation and group massacre became a norm.”
  Using this barbaric method, rulers and priests joined hands in order to suck the life blood out of the people. They did that under the banner of patriotism, nationalism, and even in the name of God.

  Herbert George Wells, a British historian, portrays the following picture of the situation:

  By imperceptible degrees the common man found the patch he cultivated was not his own; it belonged to the god: and he had to pay a fraction of his produce to the god. Or the god had given it to the king, who exacted his rents and tax. And sometimes the god or the king or the noble had work to be done and then the common man had to leave his patch and work for his master.
  (The Outline of History, New York: Doubleday & Co. Inc. 1971, p. 193)

• 37. Nahjul Balagha, Letter 512, pp 246.
• 38. Sayyid Razi, may God bless his soul, who has collected the Imam’s sermons and letters in Nahjul Balaghah has this to say about the letter: “We have presented excerpts of this letter to show how the exalted Imam (‘Ali) established the foundation of justice and how he elaborated on a just course for large and small affairs in the form of rules and regulation.” I wish the exalted Sayyid had presented the whole text of this letter and that of the others. That would have made available these invaluable Islamic sources for Muslims as well as for the world.
• 39. Because poor rate was then collected in the form of coins as well as in kind.
• 40. From here on the text consists of instructions on how to arrive at the number of cattle to be assessed for zakat.
• 41. Nahjul Balagha, Letter #25, p. 218.
• 42. The taxation at the dawn of Islam and during the era of the caliphs were regulated by this practice.
• 43. Submitting to prophethood elevates man to value faith for its own sake because it enlightens one’s heart, whereas apostasy, corruption and disobedience become undesirable. The enlightened person avoids them not for benefit or fear of loss and of punishment but for God. This is what intellectual and moral growth is all about.
• 44. The first slogan of socialism is “from each according to his ability and to each according to his work”. Socialists argue that this slogan should be implemented during the first stage of socialism. After this has materialized and production and distribution have been completed, then “from each according to his ability and to each according to his needs” must be implemented.

  The second part of this slogan “to each according to his needs” does not conform to the labour theory of value, ownership and distribution based on labour. The socialists had to use this slogan even though it is based on human value and not economic surplus.