HISTORY OF MONEY

During early human history, no one needed money to obtain what they wanted for themselves. People hunted or grew their own food. They made their own clothing and shelter. As time went on, some persons found that thery could do a particular job better than their neighbours. So thery spent their time doing that job, and exchanged the goods thery produced for other goods they needed but did not make themselves.

A man who liked to fish and was a good fisherman spent his time fishing. He would trade the fish for other things he needed, like corn and clothing that his neighbour made. This method of trading or exchanging goods is called "barter". When people do not use a wide variety of goods and when waatever is produced is in demand the "barter" system works well.

But people later had problems using the barter system. For example a man who reared cattle may have found that the only person who wanted cattle was a fisherman. If the herdsman traded one cow for one hunred fish he would then have had to hurriedly barter the fish he could not use, before they got spoilt. He may have often not been able to find people who wanted the fish in exchange for other goods he needed. So he was the poorer by the value of the unused fish.