Money. How did they arise?
The question is whether it someone really knows today. Adam Smith in his book "An Inquiry into the nature and Causes of the Wealth of Nations" in the part "Of the origin and use of the money," writes:
"When the division of labour has been once thoroughly established, it is but a very small part of a man's wants which the produce ofhis own labour can supply. He supplies the far greater part of them by exchanging that surplus part of the produce of his own labour, which is over and above his own consumption, for such parts of the produce of other men's labour as he has occasion for. .."
And continue:
“But when the division of labor first began to take place, this power of exchanging must frequently have been very much clogged and embarrassed in its operations. One man, we shall suppose, has more of a certain commodity than he himself has occasion for, while another has less. "
"The former consequently would be glad to dispose of, and the latter to purchase, a part of this superfluity. But if this latter should chance to have nothing that the former stands in need of, no exchange can be made between them.
The butcher has more meat in his shop than he himself can consume, and the brewer and the baker would each of them be willing to purchase a part of it. But they have nothing to offer in exchange, except the different productions of their respective trades, and the butcher is already provided with all the bread and beer which he has immediate occasion for. No exchange Can, in this case, be made between them. He cannot be their merchant, nor they his customers; and they are all of them thus mutually less serviceable to one another. In order to avoid the inconveniency of such situations, every prudent man in every period of society, after the 1rst establishment of the division of labor, must naturally have endeavored to manage his affairs in such a manner as to have at all times by him, besides the peculiar produce of his own industry, a certain quantity of someone commodity or other, such as he imagined few people would be likely to refuse in exchange for the produce of their industry.
Many different commodities, it is probable, were successively both thought of and employed for this purpose. In the rude ages of society, cattle are said to have been the common instrument of commerce; “
And Furthermore, free form could say: Exchange different kinds of goods were not just simple, and so searched for something more universal. First it was the different metals. But there was a big problem with precise weighing and testing of metals. (By the way, maybe even nowadays many a reader already stumbled on the would-be "great purchase" the golden ring from the nicely over-clever trader who polished bronze ring and claimed something about 14 karat gold...). So metals started to tag, until it has reached a stage of coinage.
And Adam Smith continue: “This is therefore the money have become for all educated Nations General tool shop, through which the goods of all kinds, buys and sells, or exchanges for other ".
However, the coins are again over time have proven to be not too comfortable. With the development of trade also grew in financial transactions and transmit still heaviest sacks with the coins was difficult. It was necessary to find a resource that was lightweight and also well had manipulated by him. Monarchs therefore provide specific people, today we call the bankers the right to issue tickets on behalf of monarch, that served as proof that their owner has the right to receive a certain amount of physical coins called current coins. Basically, it was a kind of voucher, de facto promissory notes, which at any time can be exchanged for coins. A note begun exists. As it goes in the world, however, soon these "bankers came to that all the owners of this scrap of paper will not be want their promissory notes convert to the coins at the same time (later, gold, or silver). This is of course tempted to action when they issued more and more promissory notes, in fact, in worth far more than their physical value expressed in form of coins, gold or silver. Mainly, that was to finance the war and the other of monarch "joy". Anyway, it was not publicly known, what collateral practically this papers represents, and what value really has.
The first, this experience had China. Sometime around the year 1402 a.d., when it lacked sufficient gold to finance the war, introduced paper money. Short term it worked well and the people believed in the "notes". The monarch, noticed this situation in community was encouraged to left print still more and more paper money. But they already by far were not covered by gold or silver in physical form. This scam soon transpired and the paper money lost its value completely and no one wanted them. This first manifestation of inflation led to the fact that paper money in China in the year 1402 were cancelled. Just for tweens. . In Europe the paper money appeared as the first in Spain in the year 1483.
For sure another important milestone had happened when the King of Sweden in 1661 had given to banker by name Palmstruh Jahon the approval allowing it to establish a private bank with the right to issue money covered by gold and silver deposited in safes of the same bank. The name of this bank was Stockholm bank. Unfortunately, this bank model was followed by many descendants.
G. Davies writes: "money originated mainly from the non-economic reasons: of taxes and also from the store, out of the money for the redemption of the penalty or the payment of a bride, from a shift of goods, of the ceremonial and religious celebrations and also from the store and from the sumptuous decoration, performing as the common toil among the economically active people. "
It is worth mentioning that the only nation that did not load or never actually did not recognize any form of money were the Incas.
Perhaps it is no exaggeration to say that the Money belongs to the biggest inventions of mankind. Fulfils a dual function. It is a tool of trade, and the recipient of value. Today we take the money as a natural thing. Money determine our lives. Whether we admit it or not, they have a huge influence on our thinking, behaviour, health, quality of life and education. Without them, they never developed trade, crafts and agriculture or industry.
The temptation to issue more paper than is good for the economy, continues to this day and the consequences of the offence also reflects negatively on a periodic basis in the economy, now in a globalised form all over the world.
