a BRIEF HISTORY of MONEY By Mark Barry © 2008 AFES www.afes.org.au Please do not republish without permission, but feel free to copy for personal use. Sources: ‘The History of Money’ (www.pbs.org/wgbh/nova/moolah/history.html); Money Through the Ages by John and Jennifer Barwick (Heinemann Library, 2002). ‘Money’ in the New Bible Dictionary, (IVP, 1997). Metal money Bronze and copper copies of Cowrie shells, as well as monies shaped Barter Banks in the form of tools (eg. hoes and shovels), Exchanging goods and For a small fee (or were used extensively in services for mutual deposit), temples and China. These were later Leather money benefit has existed pretty palaces in Mesopotamia developed into crude much from the beginning offered safe storage of round coins with holes at The first banknote of time and is still used valuables (eg. grain, the centre, which could appeared in China as today throughout the livestock, precious be strung together as squares of painted world in place of money. metals). chains. leather. PRE-HISTORY 2,000 BC 1,000 BC 100 BC 10,000 BC 1,200 BC 700 BC Commodities Shells Metal coins Old Testament coins (600-450 BC) The use of commodities The Cowrie shell was The first coins outside of (basic, commonly needed widely used as a form China started appearing - Persian gold daric items) as a unit of of currency throughout in Lydia (modern-day (1 Ch 29:7; Ezr 2:69; exchange is the oldest Asia, the South Pacific Turkey) and were made Ne 7:70) form of money known and (up to recently) of electrum (a natural - Jewish silver shekel in history. Forms of Africa. mixture of gold and (Ne 5:15; 10:32?) livestock (ie. cows, silver). They were soon sheep, pigs, camels) stamped with images of New Testament were probably the first gods and emperors to coins (0-100 AD) and most widespread distinguish them from commodities to be used, forgeries. - Jewish bronze lepton along with highly-valued (Mk 12:42; Lk 21:2) items such as seeds, salt, - Greek silver drachme tobacco and tea. (Lk 15:8; Mt 17:24, 27) - Roman copper as (Mt 10:29; Lk 12:6) - Roman silver denarius (Mt 20:1ff; Lk 10:35) Credit cards Credit cards were first introduced in the US and Bank notes Europe at the beginning EFTPOS Paper notes of the 20th century for As banks developed in customers to make EFTPOS (Electronic Again the first paper Europe they began to transactions internally Funds Transfer Point of banknotes appeared in issue banknotes, which within large companies Sale) was introduced to China, lasting for more promised the bearer the or hotel chains. Their allow users to withdraw than 5 centuries before receipt of stored money buying power was cash from businesses severe overproduction and precious goods. extended to other, at the same time as and inflation made them These notes were often external companies purchasing goods or redundant. used as a form of money. around 1940. services. 900 AD 1700 AD 1920s AD 1980s AD 1600 AD 1816-1930 AD 1960s AD 1990s AD Paper money Gold standard ATMs Internet banking & shopping Paper money was first Gold was recognised as In 1967, the first ATM accepted as a form the standard of value was installed in a With the establishment of currency in Europe in 1816 by England Barclays Bank in London. of the worldwide web in (though it would take and 1900 by the United Nevertheless, ATMs only the late 80’s and early many centuries for it to States. The purchasing became commonly used 90’s, internet banking be commonly used). power of banknotes in the mid to late 80s. and shopping very quickly derived their value became common. The directly from the value of world’s first cyberbank, gold. The gold standard First Virtual, opened for ended with the great business in 1994. depression in the 1930’s when gold became devalued and inflation massively increased..