Can You Define The Origin And Growth Of Money?

Money is lost in antiquity. Accordingly to Spalding, the growth of money is spontaneous. Man has not made any determined effort to discover it. Sewer is however of the opinion that money had developed out of necessity and there is a long process of evolution since the day of Adam and Eve to this modern complicated credit system. Some economists say that money is in fact discovered to remove difficulties of direct exchange of goods for goods and to serve as a unit of account and a medium of exchange.

There is no dyeing the fact that money has evolved in response to the urgent needs of various stages of economic growth. In the early primitive days of barter when goods were directly exchanged for goods, cow heads, goats, ox-hides, dried fish, battle axes, knives, arrows, furs, wheat, rice, etc., have served as money in different parts of the world. As time passed on, it was found that these commodities were not best suited as general means of making payment because there were difficulties in storing them.

They also lacked the essential or durability, transportability, divisibility, malleability and homogeneity. So a search was made to find out of a discovery of precious metals of gold, silver and copper.

Paper money came into existence through gold storage.  There were places that stored gold for clients. The clients were given a paper certificate that showed how much gold they had.  People began trading the certificates rather than carry gold around.  This was the start of paper money.