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Expanded Information
The History of Money
In the Beginning: Barter
Barter is an exchange of resources or services and dates back to the be- ginning of humankind. For example, someone might trade a chicken for
a pot. Bartering is still used among people even today!
9000-6000 BC: Animals
Cattle, sheep and camels were some of the first and oldest bartered items. Eventually the grains, vegetables and plants used to feed those animals were also used as barter.
1200 BC: Shells
Mollusk shells, also known as cowrie shells, were widely available in the waters of the Pacific and Indian Oceans. The cowrie shell is considered the most widely and longest used currency in history. People in China and parts of Africa have used cowrie shells for centuries, even as recently as the middle of the 20th century!
1000 BC: Coins
China was the first to manufacture bronze and copper into coins to be used as currency. The Chinese made their coins with holes in them so they could be strung together in a chain.
500 BC: Modern Money
Coins made out of precious metals like silver and gold began to take on the form we know today. The Greeks, Persians and Romans stamped their coins with the heads of various gods or emperors. Each new emperor that came into power would make new coins to use that had his image
on them.
806 AD: Paper Money
China began making the first paper bank notes centuries before it became common in Europe.
1535: Wampum
North American Indians used wampum or strings of beads made from clam shells
as their currency. The word “wampum” means white, which was the color of the
beads. Legend has it that early settlers from Amsterdam used wampum beads to purchase the island of Manhattan from American Indians.
1816: The Gold Standard
England officially adopted gold as the standard for the value of its currency. Bank notes had been used in England and Europe for hundreds of years but their worth had never been tied to gold before. The United States adopted the gold standard in 1900.
1930: End of the Gold Standard
The stock market crash and the ensuing depression devalued gold and contributed to the United States officially ending the gold standard.
The Present
Currency continues to change as evidenced by the Euro and the recent new designs of U.S. money.
The Future: Electronic Money
With an ever increasing reliance on technology, cash may become digital. Instead of getting change for a $20 we would get a transfer of bits and bytes into our accounts.
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