Category Archives: money

Paper money

Posted on by

The history of paper money is far more involved and less linear than any of us might expect. We use it without really thinking about all the thought, and all the changes that have gone into the bills we use now.

Because coins are heavy and difficult to transport, the search for an easier form of currency began early, especially in far-flung trading networks where carrying large amounts of cash was impractical.

Leather, parchment and other durable substances were used. They were not paper money, as we think of it. These bills acted as bills of credit or promissory notes for the transaction of business. Paper money is thought to have begun in China using the inner bark of mulberry trees. (I guess in this case money really did grow on trees.)

Letters of credit and promissory notes were widely used in Europe during the Middle Ages. They were backed up usually by specie. The shift toward using these banknotes in Europe occurred in the mid-17th century. But the issuing of such notes was not centralized. Banks and other groups (such as the Knights Templar) issued their own.

. In the United States, notes were issued by different banks, even the different states. There were more than 7000 different varieties.. In 1861, the Treasury Department began printing ‘Treasury notes’, partially to help fund the Civil War. But the other banks and institutions continued printing there own notes; US government decreed these notes were subject to government authorization. The law was not suspended until 1932.

Although paper money is lighter to carry, it is also less durable. Counterfeiting has been and continues to be an ongoing problem. To combat the problem, various changes were instituted. The Secret Service was established in the 1860s. In 1929, the design for the bills was standardized. Paper and ink have been changed a few times to make them harder to copy and, most recently, the pictures have been moved off center.

The history of paper money is far more involved and interesting than we realize.money

Money

Posted on by

We are so accustomed to money, the ease of using it and its ubiquity, that we forget that money as a concept had to be invented. And although money is thought to have been invented before 2000 B.C.E. in Babylon, the use of money in the United States was still not standardized in the Federalist Period (roughly late eighteenth century to early nineteenth.) Will Rees, my detective, uses French sous, Spanish pieces of eight (so called because it was formed into eight section that could be broken off), English pounds and more. The new United States created its own money in 1792 but it took many years for for the new money to become common enough for use.

Paper money was used first in China and was soon used by other countries as well. The problem with paper money is this; by itself it is worth nothing. It is not like a piece of gold or silver which at least has the intrinsic value of the metal. Paper money, therefore, is supposed to be back up by reserves of something that has value, such as gold. Otherwise, countries can print paper money to pay with, but the money is virtually worthless. This happened during the American Revolution when, as one point, the Continental dollar was worth only 1/40 of the face value printed on the bill.

The gold standard was officially adopted in the United States in 1900 and abandoned in 1971.

So, the question becomes, what did people use before money? Shells spring to mind. But the value has to be agreed upon by both parties. Imagine going to the grocery story and haggling over every single item in your cart. Barter then becomes the major factor. Even when using a valuable metal such as gold or precious gems, both sides of a transaction have to agree on how much value to assign to the items. Standards – how many grains of gold equals what – have been attempted do achieve uniformity so that all parties can agree on how much a dollar, or a Euro, or, in the past, a franc or a lira are worth.

As complicated as money can be (just try to price an American dollar against a British pound day by day), living without money would be a nightmare.

Let’s talk about money

Posted on by

As I mentioned before in the previous post, at least my character Will Rees was used to money. Of course, in the early U.S., the people used French sous, Spanish pieces of eight, and British pence as well as the new coinage: the American dollar.

In the new series, in Bronze Age Crete, I am not sure how common money was.

No longer nomadic, the civilizations of the Middle East had settled homes where they grew food. Financial interchanges probably began with barter – but that must have taken some dickering. “I’ll give you a bracelet for so many bags of wheat” for example.

By the period of my new series, the civilizations did have metal – hence the name Bronze Age. Bronze is a mixture of tin and copper. I suspect, since they had metal, they had some form of coinage – or at least metal that was used as money. Was it per weight? Who knows.

Many many clay tablets have been found on Crete and of course where the great civilizations of Mesopotamia were located. Most of them are lists: lists of products or a name of a person who will pay so many pieces of silver. One theory suggests that writing began so as to keep track of money.

But we would probably not recognize the money. In some cases the money was based on measures of barley that is the shekel. As we might expect, gold was rare and valuable – but also heavy – so silver and electrum (a combination of gold and silver) were also used. Egypt used copper as money.

And with the trade that took place at this time, I expect Egyptian copper money, shekels and other coins were used as well.

True coins, by the way, were not created until around 600 BCE. A great leap forward because, if you have consistent coinage, the money offered does not have to be weighed every time a financial transaction too place. Of course gold and silver would have been good for valuable items such as a slave or a bull but what about food?Thousands of less valuable coins made of copper or bronze have been found at places like Athens where there were markets and shops.

There is a lot more history about money – the role of kings, banking, lending and interest and so forth – features we take for granted to day. Hard to believe it all had to be invented and is actually quite complicated.

Money, scissors and more

Posted on by

 

Much research was and is required for the Will Rees mysteries. After all, they dressed differently, ate differently and mostly lived different. Most people then lived on farms. And, of course, there were no telephones, landlines or otherwise, no computers, no cars – the list goes on and on.

But as I research Bronze Age Crete for my next series, I realize how many things there are. Money, for example. Every Western country as well as China, India and more had money. Well, there was some money in the Bronze Age. In what is now Iraq and Iran, shekels were used. They were tied to a certain amount of barley. Consistent weights for gold and silver were beginning to be set up. But can I casually say my characters in Minoan Crete went to the market with their money and purchased something? No. Something must have been used; after all, Crete was the center of trade. Did they use a barter system or a combination of both? Obviously, more research is required.

I talked about needles in my last post. Well, let’s move on to scissors. Rees uses scissors and we would recognize them. Scissors were invented during the Bronze Age but they were not the scissors we know. More like two blades attached with a copper band.

And the people of Rees’s time period ate similarly to us. More meat heavy and certain vegetables were newish such as potatoes and tomatoes but we would recognize most of their food.  The Minoans ate differently. Sure, they ate lamb, seafood and goat, lentils and other pulses, grains such as barley and wheat. But did they consume dairy products? Had they learned to make cheese? So far, although there are competing theories, no one seems to know.

And did they eat beef? The bull was sacred to them. The Classical Greeks sacrificed Cattle by burning the hides and bones so the aroma would go up to the Gods. Did the Minoans sacrifice their Bulls and do the same? Or did they treat their cattle as they still do in India today: cattle are sacred and not eaten?

But they did consume beer, wine and a fermented honey similar to mead.