Ethnic Networking Quotes

“Gilder G, 1996. The Moral Sources of Capitalism. In: Gerson M (ed.), The Essential Neo-Conservative Reader. Reading, Massachusetts: Addison-Wesley Publishing Co., pp. 151-159

Quoting page 154:

The next step above potlatching was the use of real money. The invention of money enabled the pattern of giving to be extended as far as the reach of faith and trust from the mumi’s tribe to the world economy. Among the most important transitional devices was the Chinese Hui. This became the key mode of capital formation for the overseas Chinese in their phenomenal success as tradesmen and retailers everywhere they went, from San Francisco to Singapore. A more sophisticated and purposeful development of the potlatching principle, the Hui began when the organizer needed money for an investment. He would raise it from a group of kin and friends and commit himself to give a series of ten feasts for them. At each feast a similar amount of money would be convivially raised and given by lot or by secret bidding to one of the other members. The rotating distribution would continue until every member had won a collection. Similar systems, called the Ko or Tanamoshi, created saving for the Japanese; and the West African Susu device of the Yoruba, when transplanted to the West Indies, provided the capital base for Caribbean retailing. This mode of capital formation also emerged prosperously among West Indians when they migrated to American cities. All these arrangements required entrusting money or property to others and awaiting returns in the uncertain future.”
― Mark Gerson, The Essential Neoconservative Reader