The Principles of Economics, with Applications to Practical ProblemsFetter, Frank A. (Frank Albert)
General
The Principles of Economics, with Applications to Practical Problems
Fetter, Frank A. (Frank Albert)
Economics
But some of the metals, having value in small bulk,
salability, cognizability, and durability, step by step displaced other
forms of money. Finally, money must be made of a material easy to divide
and unite. It is a great convenience in small transactions to be able to
represent a fractional value by a small coin. The money material thus,
likewise, is easily shifted to and from its money use. It is a very poor
money that has not this quality, yet a thing may serve for money in
larger transactions without it. Cattle, slaves, and land have been thus
used, although they answer in a very rough way these fundamental
requirements of the money material.
[Sidenote: Industrial changes affect the convenience of certain money
forms]
4. _The changing material and industrial conditions of society change
the kind of money that is used._ The money use, as has just been shown,
is a resultant of a number of different motives in men. Things that have
the highest claim to fitness for money with a people at one stage of
development would have a low claim at another. As each of these stages
is passed, the thing used as money either increases or decreases in its
fitness. The final choice depends on the resultant of all the
advantages. The use of a material may become more general or less so.
Shells used for ornament in poor communities cease to be so used in a
higher state of advancement, and thus their salability ceases. Furs,
used at some stage of development as money in all northern climes, cease
to be generally marketable when the fur-bearing animals are nearly
killed off and the fur trade declines. Tobacco was at one time in
Virginia a great staple. Merchants were always ready to take it, and its
market price was known by all; but as it ceased to be the almost
exclusive product of the province, it lost the knowableness and
marketability it had before. In agricultural and pastoral communities
where every one had a share in the pasture, cattle were a fairly
convenient form of money, but to-day would be a most inconvenient one; a
city merchant exchanging goods for Poland China pigs and Texas steers
would envy the proverbial owner of a white elephant.
[Sidenote: The proved fitness of gold and silver as money]
Public-domain text, read in full here on John Shaqi.
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