ANCIENT FORMS OF MONEY

One of the most ususual forms of money was the stone used until the early 20th Century by Primitive people on the island of Yap in South Pacific. Their money called the "FEI" consisted of large stone wheels ranging size from 1 foot to 12 feet (0.3-3.6 meters) in diameter with a hole in the greater was its value. Since many of the stones were large and difficult to move. they remained at a ginven location, although their ownership changed hands.

The early Phoenician and Babylonian traders in the Mediterranean area used metal as money. In 2500 B.C. the Egyptians used metal rings as money. Around the same time the Babylonians started a system that some have referred to as fourerunner of paper money. Pieces of gold were used in Sri Lanka in ancient times and these were called "Kahapanas" ("Kahavanas").


With time, most exchanges were with bullion - gold or silver bars whose weight had to be certified. Later these bullion bars carried the stamp of the various merchants who processed them, the weight of the vars also being included on the stamp. Such stamped metal was used in CHINA around 2000 B.C.