If a Western man in past centuries ended up on the Yap Islands, which are part of the Federated States of Micronesia, his gold or silver coins would not be worth anything. Until the 19th century, the inhabitants of Yap practiced a strange way of calculating.
The Yap Islands are islands in the Pacific Ocean. Part of the state of Yap, Federated States of Micronesia
The Yap Islands used large round stone discs, usually carved from limestone, as money. These stones, known as Rai, were quarried in Palau and then transported to the Yap Islands.
Great Rai Stone in Yap Islands
However, Yap stone "money" was just ordinary useless stones if they did not have a history and a master. Each stone had a history of origin and a history of transactions made with its participation. That is why the theft of Rai was meaningless: if the deal was not officially recorded in the history of the island, then the stone still belonged to its old owner. The person who owned it had to declare that he no longer possesses the stone and transferred it to another.
Rai stones in the village
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The Rai stones were of various sizes. The smallest of them were only 7-8 centimeters in size, while the largest of Rai were up to 3.6 meters in diameter and 0.5 meters thick. These huge stone "wheels" weighed up to four tons. The size and craftsmanship of each particular Rai stone was only a small fraction of its real value. The greatest value in the stone was its history. If during the delivery of the stone to Yap, many people died, or a famous navigator brought it, then the stone was considered rare, and, therefore, more valuable. The more stories were associated with the stone, the more its value grew.
The removal of the Rai stones during the formation of the Federated States of Micronesia
When the stone changed its owner, there was no need to physically transport it to another location. The Rai rarely moved them due to the risk of damage, and this is probably why the cost of moving them was more expensive than the stone itself. All the islands were essentially a huge "bank", and everyone knew about the whereabouts of their "money". However, there were those who wanted to "show off" their wealth, and placed their stones in their courtyard in front of the house.
Transportation of stone money to the Yap Islands
The Yap financial system worked so well that even if the Rai stone was lost (for example, fell to the bottom of the sea during transportation), then everyone agreed that it should still exist.
When did this practice arise? Local legends claim that the Yap people discovered limestone in Palau 500 - 600 years ago, when the navigator Anagumang set out on an expedition to the neighboring islands. He noticed that there was no such stone in his homeland, so he considered it very valuable.
Big stone Rai in the village of Gachpar
Supposedly it was Anagumang who ordered to carve the first stones in the shape of a fish, but later the shape of "wheels" was chosen, since such "money" was easier to carry with the help of a wooden pole, on which Rai was worn. The Yapis did not take the Rai stones for free, they traded them from the Palauans for beads, copra and coconuts. According to archaeological finds, limestone blocks have been mined in Palau since 500 AD, but most of Rai was mined between 1000 and 1400 AD. The rais were further used in transactions.
Rai stones - national symbol
However, a noticeable change took place when Europeans started visiting Yap. With the help of new tools that the islanders got, they were able to make larger stones. It is believed that it was at this time that the Yapan currency changed from small carved beads into huge stone wheels. As in every organized economic society, the value of money tends to change dramatically over time. The same thing happened with Rai. An American captain named David Dean O'Keefe was shipwrecked near Yap in 1871.
The Rai Stone on display at the Bank of Canada Currency Museum
After the natives rescued him, he helped them with the extraction of limestone. O'Keeffe began to supply the Japanese with iron tools in exchange for copra and trepangs. In 1954, the story of David Dean O'Keeffe was told in the Hollywood film His Majesty O'Keeffe. After these events, inflation began on the islands. The new Rai stones, obtained with the help of iron tools, were less valuable than the old ones. And at the beginning of the 20th century, the Rai stones almost fell out of use and they were slowly replaced by the modern monetary system.
The Rai stones are the national symbol of the Yap Islands
Today, the Yap Islands, which are part of Micronesia, use the US dollar as their official currency. However, the Rai stones still play an important role in the local community. They are used during many significant social exchanges such as marriages, inheritance, political deals, or as a sign of union.
Locals and non-museum stones
Stones that are not in museums can be seen in front of communal houses, along roads or in front of some houses. The Rai Stones are the national symbol of the Yap Islands and are featured on local license plates.