elementsofbankin025161mbp

|4 THB ELEMENTS OF BANEIN0.
Money. Such a state of things In no way implied Mono.y, or
Currency, or Circulating Medium.
The necessity
for arises
Money
from a wrnip.what diifcivnt
cause. (jo. long as the things exchanged wore equal In value
there would be no need for Money. If it
happened
tli&i the
exchanges of products or services among persons were equal,
there would be an end of the matter. But it would often happen
that when one person required some product
or service from lite
neighbour, that neighbour would not require an equal mrnnmf, of
product or service at the same time, or, perhaps, evon none at all.
If then a transaction took place with such an unequal result,
there would remain a certain amount or difference of product
due from the one to the other, and this would constitute a DKIIT
that is to say, a Right or Property would be created in t,h
person of the creditor to demand this balance of product at som
future time, and at the same time a Duty is created in the purson
of the debtor to pay the product, or perform th Hervice,
when required.
Now among
all nations who exchange, tlim rujmlt muni
inevitably happen : persons want something from others when
those other persons want nothing from them. And if; w easy to
imagine the inconveniences which would arise if persons nrvor
could get anything they wanted, unless tho personn who could
supply these things wanted something in return at tho amu
time.
II. In process of time all nations hit upon thw plan ; tlwy
fixed on some material substance which they agreed to make
always exchangeable among themselves to represent tha amount
of Debt.
That is, that if an unequal exchange took place among persons
with a balance due from one to the other, then an amount
of this universally exchangeable merchandise waa given to ftiako
up the balance, so that the person
to whom the balance wan due
might get an equivalent from some other person.
Suppose a wine-dealer wants a quantity of bread from a
baker; but the baker wants only one half the oquivatmit
quantity of wine from the wine-dealer, or, perhaps, cvu none
at all