People innocently believe in school textbooks (and I believed) and think that in the old days it was enough to collect a bunch of beautiful shells, or chop up pieces of native silver or gold (there was no metallurgy yet), as they automatically became money. It's time to face the truth: we were deceived! These historical tales do not stand up to elementary criticism.
The financial system of human society, which we have today, could not have arisen naturally. Why? Because for it to appear, several fundamental conditions must be met simultaneously, which in real life cannot be met, since they require a financial system. It's a paradox, isn't it?
What are these conditions?
1. Technological and legal protection of money from counterfeiting
There is little sense in the fact that you will release money into circulation that any craftsman can fake without fear of punishment for it. Your financial system will die before it is born. That is, at the time of the creation of the financial system, society should have a developed technological base, concentrated in the hands of the one who decided to create the financial system, appropriate legislation and effective law enforcement agencies.
2. The education system
To use money, a person, at a minimum, must be able to count and read (write). This means that the financial system at the time of its birth requires the presence of an appropriate education system in society.
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3. Obligation to receive
It is impossible to force a person to exchange the results of his labor or objects of value to him for bundles of shells (even beautiful ones) or pieces of metal until he is sure that he can exchange the same shells or pieces of metal for the results of someone else's labor and other people's valuable items.
That is, the financial system requires the trust of people to function. This means that the one who creates the financial system, simultaneously with the release of money into circulation, must create exchange offices, where people can again exchange this money for the results of other people's labor and valuable items - in fact, ordinary shops.
Products in such stores must be constantly in stock and in full assortment. In the event of a shortage of those, money will instantly depreciate and society will return to natural exchange (or to the card system).
4. Protection of the financial system from the actions of third parties
To protect your financial system from malicious acts by other human societies, you must have border and customs services to prevent the uncontrolled movement of money and goods outside of society that threatens the financial system.
5. Treasury
To control the amount of money in circulation, its condition and timely issue, as well as to set the value of money (rate), the company must maintain a treasury service.
6. Banks and collection service
The financial system needs banks and a cash collection service to collect and store cash from exchange points.
7. Law enforcement system
The emergence of money is inevitably accompanied by the growth of crime, since it is much easier to steal, take away, and also store money than goods. Therefore, in order to protect private and public property, society is forced to maintain a powerful law enforcement system.
As we can see from the above, the financial system requires huge costs from society for its functioning. This is a very expensive pleasure that only a highly developed society can afford! And where is the place in it for shells and chopped pieces of gold and silver?
The financial system (money) could appear only in a society of educated people, possessing technologies that exclude counterfeiting of money, appropriate legislation providing for strict punishment for counterfeiting and an effective law enforcement system capable of identifying and neutralizing counterfeiters, as well as protecting private (public) property, protected by the border and customs services. That is, in modern society!
On the other hand, a society cannot reach a high level of development without money and a financial system.
A logical dead end arises: a financial system can appear only in a highly developed society, and a highly developed society can only become if there is a financial system!
Conclusions:
1. Statements of historical science about the appearance of money (financial system) in primitive societies in ancient times are a lie!
2. The financial system of mankind appeared together with mankind, instantly, ready-made, and quite recently (I believe, about 70 years ago) - other options are excluded!
Author: Sergey Morozenko