Economics Volume II: Modern Economic Problems — John Shaqi
Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
§ 2. #Qualities of the original money-good#. The selection of any
money-commodity has not been mere chance, but has been the result of
that object being better fitted than others to serve as a medium of
exchange. The main qualities that affected the selection of primitive
form of money were as follows: 1. Marketability (or saleability); that
is, it must be easy to sell. The first forms of money had to be things
which every one desired at some time and many people desired at any
time. That was the essential quality that made any one ready to take
it even when he did not wish to use it himself. Many kinds of food and
of clothing are very generally desired goods. But few of these classes
of goods have in a high measure certain other important qualities, now
to be named.
2. Transportability; that is, the money material must be easy to
carry, it must have a large value in small bulk and weight. To carry
a bag of wheat on one's back a few miles requires as great an effort
ordinarily as does the raising of the wheat, and the cost of carriage
for fifty miles even by wagon will often equal the whole value of the
wheat. Cattle, while not comparatively very valuable in proportion to
weight, and not possessing the other qualities of money in the highest
degree, have the advantage that they can be made to carry themselves
long distances, and therefore they have been much used as money in
simpler economic conditions.
3. Cognizability; that is, the money-good must be easy to know, and
to judge as to quality. If expert knowledge or special apparatus are
needed to test it in order to avoid counterfeits, few could be ready
to take it and trading would be a costly process.
4. Durability; that is, the money-good must be easy to keep without
much loss in amount or in quality, perhaps for long periods, until it
can be passed on in trade. Few kinds of food answer very well to this
last requirement, being organic and perishable. But all four qualities
above named were pretty well embodied in primitive times in rock salt,
in rare flints and bits of copper suitable for tools and weapons,
in furs in northern countries, and in many articles of personal
adornment, such as beads, feathers, jewels, and metal ornaments.
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