INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

FIN 4140
Islamic Money and Payment Systems

The Story of Sukus & Tukus

by Ahamed Kameel
 Aya Baya

» Sukus people » Tukus people

» Island had gold » Tribal leader – Taka
» Sukus used pieces of gold as money » Island of Baya was fertile too
since everyone treasured gold » Tukus merely did barter trade
» Tribal leader – Saka
Sukus lived a simple cooperative life…
Their market was a lively place, busting up with
all kind of trades. The Sukus sold their goods at
fair prices.
Since everyone treasured gold, the Sukus used
pieces of gold as money. It was called Dana.
One day, two smartly dressed men arrived in a ship on the shores
of the island of Aya. Their names were Gago and Sago. The
Sukus being a very hospitable people welcomed their new guests.
Gago and Sago convinced the people that an institution called a bank
would benefit the people immensely. They explained that a bank would
provide a place for keeping their gold money safe while uplifting their
economic conditions by making the savings available to others for
productive use, which otherwise would remain idle.
 The people thronged to deposit their gold coins with the bank.
Depositors were given a piece of printed paper for gold coin they
deposited, with the assurance that they could redeem a gold coin
for every paper they turned in.
The people deposited all their gold coins, a total of 100,000 pieces and
hence an equivalent number of pieces of paper were given out.
The Tukus who heard about the whole thing became excited and
pleaded with Gago and Sago to help them out too. Gago and
Sago smiled to each other and told the Tukus that they would
indeed be very pleased to do so.
 The difference between Aya and Baya was that in Baya the Tukus had no gold coins to
deposit. Sago told them that was alright. He would however, give 1,000 paper notes to each
family to use as money. Since there were a hundred families in Baya, so 100,000 paper
notes were given out. However, Sago reminded them that at the end of the year each family
must return 1,100 paper notes, the 10 per cent extra being a charge for the services he was
providing.
Now Gago and Sago decided that the time was ripe for
them to do their real "trick“…
 CAGO HAD CALCULATED…

900,000 + 100,000 = 1,000,000

Amount that 10% Total

can be (the original amount
loaned out… deposits) outstanding
 The Sukus suddenly found that the price of things were rising. This baffled them and
no one could figure out why. Some of them who had borrowed money from Gago were
not able to pay back their debt even though they worked very hard trying to earn that
extra money. Business became increasingly competitive and the society became less
compassionate and less caring towards others than previously.
The Tukus too found similar things happening to them…
Now Sago began to confiscate real wealth from the loan
defaulters — like land, cows, sheep, etc.
After a number of years, Gago and Sago who once arrived on the
shores of the island of Aya with only a printing machine, were now
the owners of most of the land and property in both Aya and
Baya…
END OF THE CARING AND LOVING PEOPLE OF THE TWO ISLANDS
OF AYA AND BAYA…
» Prices were rising. Prices of houses rise, and many could not afford. Homes
become smaller. Many living in worn-down shacks and some even homeless.
Many could not afford even basic food.
» Poverty was on the rise.
» The people were reduced to mere workers. Many (including women and
children) worked long hours just to make ends meet.
» They now had less time for family, friends or for religious activities.
» Social problems became widespread. People cared less for others. It goes
without saying that with poverty, other social ills like crime, prostitution, etc.
began to thrive.
» Their cultures were gradually replaced because Gago and Sago introduced a
new "superior" culture of a "superior" people to which they belonged – dressing,
local festivals and religious events were abolished.
» More of Cago’s people come and occupy important government positions and
businesses.