Simmel was born in 1858. Raised in the centre of the Jewish business culture of Berlin. Simmel studied history and philosophy, becoming a Privatdozent in 1885. Although he published numerous books and artickes, simmel was excluded from influential university positions as a result of the pervasive anti-Semitism of the period and it was bot until 1914 that Simmel was finally promoted to a full professorship at the University of Strasbourg. Like Durkheim. Simmel was both the object of anti-Semitic prejudice and a fervent supporter of the nationalist cause in the First World War. Simmel died in 1918 if cancer of the liver.1 This basic and naïve factual biography of Simmel in many respects provides many of the themes in Simmel's sociology. First, his sociology is held to be the brilliant reflection of the glittering, cospospolitan world of pre-war Berlin and that his commentary on that world took the form of impressionism his sociological essays are snapshots sub specie aeternitatis”? simmel's perspective has been regarded as an example of the nature of modern society as contained in Robert Musil's The Man's Without Qualities. That is a social existence without roots, commitments or purpose.3 Secondly, Simmel was and remained a social outsider despite his good connections with Berlin's cultural elite. His writing has been as a result characterised as perspectivism and an aestheticication of reality. As an indication of this, Simmel's influence has in the past often rested on such minor contributions as ‘The Stranger’4 Thridly, because Simmel failed to secure an influential location within the German university system, there was no development of the Simmelian school of sociology at all comparable to Durkheimain sociology. Decades of sociological interpretation of Simmel's work have still left Simmel as a theoretical enigma on the ambitus of the sociological tradition. His sociology has been categorised as interactionist, formal and conflict sociology.5 In more recent years there has been a renewal of interest in Simmel which has begun to show a greater appreciation of the unity and stature of his sociology. This renewal has been brought about by the cominentaries of Levine. Frisby, Robertson, and Holzner. 6 More importantly, the translation of Simmel's The Philosophy of Money7 by Bottomore and Frisby provides a new opportunity for a systematic evaluation of Simmel's sociology of modern culture. The main burden of this paper is that existing commentaries have failed to focus on the central theme of ‘alienation’ and ‘rationalisation’ in The Philosophy of Money which provided the major theoretical backing for on the one hand, Weber's analysis capitalism as the iron cage and on the other Lukács so-called rediscovery of the alienation theme in the young Marx.