Money is the universal equivalent of the cost of goods and services, which is part of the financial system of each country. Before adopting the modern look, they went through a centuries-old evolution. In this review you will learn about the history of the first money, what stages it went through and how it changed over time.
How did the money come about?
Market relations began to form back in the 7th-8th millennium BC. At that time, primitive people exchanged extra products with each other, and proportions were established depending on the circumstances. With the advent of the social division of labor, barter gradually became uncomfortable, and our ancestors began to use different objects as money.
In Russia, fur-bearing animals were used as a means of payment; in ancient Greece, large and small livestock: rams, horses, and bulls. In ancient India, China, on the east coast of Africa and the Philippine Islands - seashells collected on a string. In the time of Julius Caesar, slaves were used for this purpose. The inhabitants of Brazil had flamingo feathers in currency . In Melanesia pork tails were used, and in Spara - stone cobbles. In some countries, human skulls were the means of payment.
First money conversion
Gradually, some types of currencies were supplanted by others, regardless of the will of the people. During the period of wars and revolutions, a massive regression took place. In Belarus, the Germans gave a kilogram of salt per partisan’s head, considering this product to be very expensive. Later, different types of metals were used as money: copper, tin, lead, and iron. In ancient Greece, iron rods were considered the best medium of exchange. Now the question arises of how the money changed further.
The history of the emergence of money tells us that soon the gold and silver metals, which take the form of jewelry, became the universal value equivalent. At that time, they were more in line with the ideal and were aesthetically attractive, so they immediately replaced other forms of money. In the 13th century BC they began to be divided into bars of a certain mass. It was then that the first weight units appeared. It turned out to be very convenient to weigh the golden sand, which for a long time performed the function of circulation in India, China, Egypt and other countries.
Start of coin production
With the further development of market relations, people minted coins of various shapes, of which round became the most practical. Alexander the Great was the first to create his own image on it - the history of money tells us this.
Natural alloy money (silver and gold) appeared in the 7th century BC. in the state of Lydia, located in West Asia. There is now Turkey. Coins have become the best medium of exchange due to the correspondence to the formed requirements:
- compactness;
- strength;
- durability;
- water and fire resistance;
- the inability to create a fake;
- ease in creating samples of monetary denominations;
- rarity.
After several decades in the Greek city of Aegina, they began to create silver coins that differ in shape from Lydian. Gradually, innovation spread throughout the world.
The emergence of paper money
There are several versions of how paper money originated. History tells us that in the 1st century BC the means of exchange were skin patches. In China, they used white deer skins and tree bark with special designations for these purposes. According to another version, an early form of bank notes appeared due to the opening of storage facilities for exchanging metals for receipts.
According to the project of John Law, the first banknotes were issued in France in 1716. This is what provoked the mass production of paper money. At the end of the XVII century they appeared in the USA, in the middle of the XVIII century - in Prussia and Austria, and at the end - in France. By the period of the First World War, they spread to all countries.
The development of the monetary system of Russia
The history of money in Russia goes back in time. The first money came to us from the Arab countries in the 19th century BC. and were called dirhams. Gold and silver was a means of payment in Kievan Rus, during the reign of Prince Vladimir Svyatoslavich (end of X beginning of XI century).
The word "coin" entered the Russian language only during the reign of Peter the Great. It was then that our ancestors began to actively search for gold, but found only in small quantities during the processing of silver ores. The source was discovered in 1745 at the Kolyvano-Voskresensky mines. The history of money in Russia is inseparable from the events of the state itself. For example, on the occasion of the beginning of the use of gold, a commemorative coin was created worth 5 rubles with the inscription “Iz Roses. Kolyv ".
Monetary policy in the USSR
Golden monometallism existed in our country until 1914. After the outbreak of World War I, credit cards were issued to cover the state budget deficit that could not be exchanged for precious metal. All types of coins completely went out of circulation, remaining in the ownership of the population, but in Soviet times they again became a medium of exchange. In 1922-1944, silver products (face value 10, 15, 50 kopecks, 1 ruble) and copper (1, 2, 3 and 5 kopecks) were produced. The government of the USSR introduced a monetary program and, finally, the history of money continued to develop in our country.
Money from gold, copper and silver was made from metal, which was in short supply. This was discussed back in 1910-1911, when the Ministry of Finance and the Mint developed a system for replacing expensive materials with nickel alloys. Then they began to produce the first nickel products, but due to military operations and the revolution, the case was stopped. In this regard, in the second half of the 1920s, bronze and copper-nickel alloys were chosen to make new money. The history of money was supplemented by a new event: a trial minting of coins with a new composition (denomination from 10 to 20 kopecks) was carried out, which spread by the end of 1931. It was then that the types of materials used today for the manufacture of Russian money were identified .
The evolution of banknotes in Russia
The first paper notes appeared under the authority of the Russian Empress Catherine II in 1769. They were very similar to bank receipts and were used to pay salaries to officials. Although the bills had watermarks, numbering and text, the print quality was poor, so the counterfeiters quietly forged them. It was necessary to replace all issued banknotes with more reliable ones, which is why after the war with Napoleon the history of money changed again.
Money of a new type appeared in 1818. Empire style and engraving ornaments became their decoration. The year 1897 is characterized by the stability of the financial system, because paper money was easily exchanged for gold coins.
New banknote production technologies in Russia
From the middle of the XIX century, metallographic printing from engraving was used, which became the basis of modern banking printing. At the end of the period under review, the first Oryol Seal device was designed, which produced bright banknotes. This technology is still used since it does not allow forging money.
The history of the occurrence of money tells us that the first banknotes of 500 rubles with the image of Peter the Great and banknotes of 100 rubles with a photograph of Catherine II appeared at the beginning of the 20th century. After the revolution and during the war years there was a breakdown in the financial system. During these periods, many people could create counterfeit money in unlimited quantities. So hyperinflation progressed and the economy of our country worsened. Vladimir Lenin carried out not only the NEP and monetary reform, but also put into circulation chervontsy, then treasury bills. Later, new banknotes with additional security mechanisms were issued.
Historical data on money in Ukraine
Previously, on Ukrainian lands, our ancestors used Greek coins. Later, Roman Empire money appeared, which was used to accumulate wealth and produce jewelry. Thanks to trade relations with foreign merchants, the currency spread in Podillia, Carpathian, Transnistria and other areas. Due to the economic and political crisis in the Roman state that arose in the III century, communications were terminated. In the V-VII century, the Byzantine and Arab currencies came into circulation.
During the reign of Vladimir Svyatoslavovich (918-1015), the history of money in Ukraine was supplemented by a new event: they began to produce the oldest coins - silver pieces (weight up to 4.68 g) and gold coins (weight 4.4 g). They were marked with the image of a prince on a throne with a trident, which is a generic sign of the Rurikovich. At the end of the 11th century, the first “hryvnias” made of silver appeared.
In the middle of the XVIII century, Ukraine was part of the Russian Empire, and therefore its monetary system has completely changed. Currency modification has complicated relations between residents of the former state and other countries. After the proclamation of the Ukrainian People’s Republic (1917), a decision was made to introduce paper hryvnia, which became the legal national currency in 1996.
UK and French financial policies
Pound sterling is the British currency used long before the formation of the state itself. In the IX-X century, 240 pence was made from it, which were called "sterling." After 400 years, gold pounds appeared in circulation. So, the bimetallic monetary system functioned until the end of the XVIII century. The conflict with France, the First and Second World Wars greatly weakened the financial system, but over time it was restored. So the history of money was formed in this country.
The money currently in circulation in France is the euro. However, this was not always the case. The first paper notes appeared in 1716. During the period of revolution (1790), the interim government issued appropriations and mandates. Over time, they depreciated, and in 1800 Napoleon created a Bank issuing francs. This currency was the most stable before the outbreak of World War I. After the restoration of the financial system, francs were again in circulation. In 1997, they ceased to be convertible, and France switched to the euro.
Loan money formation
Credit money appeared simultaneously with the progress in commodity production. The recipient is given a certain amount subject to the assumption of obligations to repay it within the time period established by the contract. The considered type of funds was created not from circulation, but from the circulation of capital. It is determined not by the state’s foreign exchange reserves, but by the number of loans granted. But when and how did credit money appear?
The history of credit funds began with bills, first created in Italy in the Middle Ages. Then banknotes appeared. In the XIX-XX centuries, checks became popular. After that, electronic money was introduced, as well as plastic cards.
Features of the loan
The borrower is given a loan if he has the ability to consistently pay. All information on cash receipts is entered in the credit history. If a person does not fulfill his obligations, this will negatively affect his ability to take a loan in the future.
Have you encountered a similar situation? Do not be upset, because there are banks that lend money without checking their credit history. Contact new commercial financial institutions seeking to gain a market position by any means. Although their interest rate will be much higher, but the client found to be in the late repayment of the loan, is able to get a loan. Pay attention to the following organizations: Avangard, Zapsibkombank, Tinkoff Credit Systems, Baltinvestbank.
History of Yandex.Money
Currently, this electronic payment system is popular. It provides financial settlements between persons who have opened accounts on it. The currency is the Russian ruble. All operations take place in a special web interface in real time. This is how the Yandex.Money system works.
The history of the system is connected with the idea of the implementation of electronic money. The program began to function from 07.24.2002. The Russians immediately appreciated its advantages, and the popularity of innovation began to grow rapidly. Gradually, it developed, and after three years, new opportunities for working through the interface became available to users. In 2007, Yandex became the full owner of the program. Three years later, she already worked with 3,500 partners, and after some time spread to different CIS countries. In 2012, the number of e-wallets increased.
The most important achievement today is the ability to transfer electronic money to bank accounts and vice versa. The company is constantly working to improve the service, so users can count on an improved Yandex.Money system.
The history of money is constantly changing in connection with the circumstances of a state. As some countries continue to conflict with each other, it is likely that their monetary systems will weaken. What changes will happen in the future is difficult to imagine.