This article is conspicuously missing many examples of early money, such as the cowrie shells, and bronze imitations, which are widely regarded as the first true, standardized money.
The use of types of "claim checks" or "claim tickets" made of paper, wood, bamboo, etc.. That section of the article should be made clearer. This was the evolutionary step between barter and the eventual use of metal tokens as the mediums of exchange.
These warehouse "claim tickets" are what eventually evolved into the "Treasury notes" when city state warehouses evolved into State Treasuries and Banks. It stands to reason that the use of metal tokens was originally a type of security feature to eliminate counterfeiting of paper, wood, bamboo type of tokens because of the difficulty of mining and refining metal and making coins.
There is no evidence that gold and silver were valuable in the sense that they are perceived today until these metals in the form of coins started being used as the medium of exchange.
Talk:History of money
I've added references to the cowrie shells and imitations to the "commodity money" section of the article. Feel free to elaborate on those if you have good historical sources academic works, that is, not TV shows. I don't otherwise understand the general complaints above and below, as there is extensive and high quality discussion of coinage, commodity money, barter, and credit money. The credit money part is controversal, but not rubbish: More comments on that below.
Perhaps these complaints reflect that the article should have a better introduction. If people agree on this feel free to propose an introduction, or I will. Meanwhile, I recommend removing the disclaimer that the article "needs attention" as it is an excellent, well above average article and readers shouldn't be discouraged from consulting it.
50 Cent - Power of the dollar (Full Mixtape)
Does anybody know the etymology for certain? Rhyolite , 22 August UTC. There should be some mention of fractional reserve banking in the example section, since that's the only way a bank can lend out someone else's deposits.
The writer also neglects to mention that the writing of the cheque changes the ownership of the coins, so they are still only owned by one person - you should have them in your account when your cheque is cashed, since they no longer belong to you, so they should probably remain there for the short time until they are reallocated. It is true that the loaned coins will probably wind up back in the bank again, allowing the reserve requirement to be met more easily, but those loaned coins being returned to not increase the levels of the reserves.
I offer a probably unnecessary example. Let's say that I am a very small bank. I can only lend another 25 cents before I meet my reserve limit. So I lend it, and it comes back in another deposit. I can only lend In reality, I can only have a maximum of 1 dollar loaned out for every 2 dollars in hand.
Ergo, that part of the Credit Money in this article is really about fractional reserve banking, is poorly written in either case, and should be either removed or moved to fractional reserve banking.
Octothorn , 28 February UTC. Credit money often exists in conjunction with other money such as fiat money or commodity money, and from the user's point of view is indistinguishable from it. Most of the western world's money is credit money derived from national fiat money currencies. In a modern economy, a bank will lend all but a small portion of its deposits to borrowers, this is known as [fractional reserve banking].
In doing so, it increases the total [money supply] above that of the total amount of the fiat money in existence also known as M0. While a bank will not have access to sufficient cash fiat money to meet all the obligations it has to depositors if they wish to withdraw the balance of their cheque accounts credit money , the majority of transactions will occur using the credit money cheques and electronic transfers.
Strictly speaking a debt is not money, primarily because debt can not act as a unit of account.
Wikipedia talk:Identifying reliable sources (medicine)/Archive 3
All debts are denominated in units of something external to the debt. However, credit money certainly acts as a substitute for money when it is used in other functions of money medium of exchange and store of value.
If anyone has concerns, suggestions or amendments, speak up and we can work on them. Otherwise I will make the change in a few days. PatClay -"A debt is not money.
Debt can not act as a unit of account. All debts are denominated in units of something external to the debt". I would disagree.
Money is the debt in which other debts are denominated. The Canadian Dollar is a debt of the Federal Government that, as the national unit of account, is denominated in itself.
Vilhelmo talk , 7 November UTC. I think we should explain clearly that barter has the problem of "double coincidents of wants". To solve that problem, people begin to obtain highly marketable goods for use as exchange medium. Competition naturally sets in as people attempt to discover which commodity functions the best as money.
FIN202 Chapter 4 7 8
All throughout the world, precious metals, particularly gold, emerged as the best functioning money. The world wide gold standard was a naturally occuring phenomenon. In the 19th century, under this standard, prices were very stable, and the standard of living increased very rapidly. Banks originate as a safe place to store gold, and the issure paper warehouse reciepts. Because and only because these reciepts are redeemable in gold, the paper notes are traded as money. Ludwig von Mises, through regression analysis, proved that money MUST originate as a valuable commodity.
Fractional reserve banking originates by bankers printing up "extra" reciepts, that is reciepts that are not backed by gold.
It is counterfeiting with a fancy name. Bank runs are the market solution to this, and bankers hate bank runs, and turn to government to try and legitimize fractional reserve banking.
Governments sieze control of money in a 3 step process. This makes "coin clipping" inflation possible. In general, I think the reader would appreciate understanding that gold is free market money, and that pure fiat money can only exist under force, not on a free market. Utter garbage! Monetary systems have their origin in and are creations of government.
ALL money is debt and a unit of account. Gold is gold and any gold standard is a form of government price setting.
Money existed prior to price setting markets. What we call money is a transferable non-interest bearing debt of the federal government, created by the act of government spending and destroy by taxation.
Every net dollar is a result of federal deficit spending. No deficit no net private savings. Vilhelmo talk , 4 July UTC. Somtimes the history of monry is un-avalible because it never going to happen You see time just never waits The Good article nomination for History of money has failed, for the following reason:. The use of proto-money may date back to at least 75, B.
Biology book $1 notes for 50 cents or less on a systematic basis
These necklaces would have provided the basic attributes needed of early money. In cultures where metal working was unknown, shell or ivory jewelry were the most divisible, easily storable and transportable, scarce, and hard to counterfeit objects that could be made.
It is highly unlikely that there were formal markets in 75, B.
P any more than there are in recently observed hunter-gatherer cultures. In the absence of a medium of exchange, all of these transactions suffer from the basic problem of barter -- they require an improbable coincidence of wants or events. I deleted the paragraph above because of the bias inherant in the dating. Nobody really knows for a historical fact of any dates prior to about B. The dates are based on radioisotope dating described in peer-reviewed literature, thus are well confirmed.
So I'm reversing. What is the significance of 4, BC? I've also updated for the more recent discovery dating beads back to , BP, and added a link to the jewellery article which discusses historical and contemporary observations of monetary use of jewellery.
This is difficult to read: Chinese produces metal imitations of cowrie shells and metal tools that may have been the precursors of coinage. Changed, PWC. The paragraph after The following example illustrates this. I suggested substituting you for a third person example.
The story is altogether told too colloqiually. Addressing the reader directly is often a poor practice. The paragraph beginning with The word money in Greek language is confusing; please clarify it. Rintrah , 7 October UTC. Does anyone even care about this article? I hope my copy-edits were not in vain.
Rintrah , 19 October UTC. I care. I think the subject is a pretty important one. I fixed one of your problems, I will have a look at the credit money part, the greek, well, that is over my head. Your work is appreciated.
I cleaned up the grammar and phrasing in the sections on Indo-European and Semitic words and took out the sections of New Testament explanation which are only tangentially related to the topic.