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Commodity money

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906: 122: 811: 1694: 1048: 25: 735: 635:, which is a certificate or token which can be exchanged for the underlying commodity, but only by a formal process. A key feature of commodity money is that the value is directly perceived by its users, who recognize the utility or beauty of the tokens as goods in themselves. Since payment by commodity generally provides a useful good, commodity money is similar to 721:. In commodity money, the coin retains its value if it is melted and physically altered, while in a fiat money it does not. Usually, in a fiat money the value drops if the coin is converted to metal, but in a few cases the value of metals in fiat moneys have been allowed to rise to values larger than the face value of the coin. In India, for example, fiat 651:
People left their surplus clothing, toilet requisites and food there until they were sold at a fixed price in cigarettes. Only sales in cigarettes were accepted – there was no barter Of food, the shop carried small stocks for convenience; the capital was provided by a loan from the bulk store of Red
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within the United States was banned after 1933, with the explicit purpose of preventing the "hoarding" of private gold during an economic depression period in which maximal circulation of money was desired by government policy. This was a fairly typical transition from commodity to representative to
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from other non-U.S. countries are specifically exempted in U.S. law from being legal tender for the payment of debts in the United States, so that a seller who refuses to accept them cannot be sued by the payer who offers them to settle a debt. However, nothing prevents such arrangements from being
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and base-metal coins is set by government fiat, and it is only this value which must be legally accepted as payment for debt, in the jurisdiction of the government which declares the coin to be legal tender. The value of the precious metal in the coin may give it another value, but this varies over
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In another example, in US prisons after smoking was banned circa 2003, commodity money has switched in many places to containers of mackerel fish fillets, which have a fairly standard cost and are easy to store. These may be exchanged for many services in prisons where currency is prohibited.
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disappeared from the market after 2007 when their content of stainless steel became larger than the fiat or face value of the coins. In the US, the metal in pennies (97.5% zinc since 1982, 95% copper in 1982 and before) and nickels (75% copper, 25% nickel) has a value close to, and sometimes
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Other animal furs were convertible into beaver pelts at a standard rate as well, so this created a viable currency in an economy where precious metals were not valued. However, for convenience, Hudson's Bay post managers exchanged
960:, shell jewellery in the form of strung beads also dates back to this period, and had the basic attributes needed of commodity money. To organize production and to distribute goods and services among their populations, before 754:
Commodities often come into being in situations where other forms of money are not available or not trusted, and these are social norms. Various commodities were used in pre-Revolutionary America including
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Cross cigarettes and repaid by a small commission taken on the first transactions. Thus the cigarette attained its fullest currency status, and the market was almost completely unified.
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time. The value of the metal is subject to bilateral agreement, just as is the case with pure metals or commodities which had not been monetized by any government. As an example,
710:, which serves as a guarantee of their weight and purity. In issuing this coinage at a face value higher than its costs, the government gains a profit known as 893:. They have continued to be used as currency in war-torn locations experiencing inadequate supply of common goods and monetary collapse, such as during the 1177:"Mackerel Economics in Prison Leads to Appreciation for Oily Fillets: Packs of Fish Catch On as Currency, Former Inmates Say; Officials Carp" 778:
and other fur trading companies controlled most of the country, fur traders quickly realized that gold and silver were of no interest to the
1514:– examines the structural differences between barter and monetary commodity exchanges and oral and written linguistic exchanges (archived). 1539: 1511: 1006:, the use of writing expanded beyond debt/payment certificates and inventory lists to codified amounts of commodity money being used in 1306: 1882: 889:
were used as a form of commodity money in some parts of Europe, including Germany, France and Belgium, in the immediate aftermath of
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functioned as a theoretical backing for Federal Reserve. Between 1933 and 1970 (when the U.S. officially left the
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existed, people relied on tradition, top-down command, or community cooperation. Relations of
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fiat money, with people trading in other goods being forced to trade in gold, then to receive
1964: 1071: 496: 82: 952:-like methods using commodity money may date back to at least 100,000 years ago. Trading in 611:) etc.). Sometimes several types of commodity money were used together, with fixed relative 160:
of which it is made. Commodity money consists of objects having value or use in themselves (
2014: 1843: 1663: 942: 854: 632: 460: 432: 165: 172:, which derives its value from having been established as money by government regulation. 8: 1991: 810: 616: 388: 1225: 2019: 1753: 1548: 1476: 1451: 1420: 1360: 1145: 926: 640: 176: 1986: 1932: 1895: 1780: 1743: 1481: 1364: 1307:""Самая крепкая валюта - это сигареты". Как выживает Херсон при российской оккупации" 1282: 1131: 894: 612: 476: 456: 204: 153: 138: 1505: 1176: 1969: 1954: 1899: 1850: 1812: 1802: 1471: 1463: 1412: 1356: 1352: 1091: 1081: 1003: 961: 657: 568: 532: 492: 292: 1381: 1949: 1877: 1807: 1785: 1758: 1584: 1321: 639:, but is distinguishable from it in having a single recognized unit of exchange. 584: 572: 404: 372: 312: 248: 196: 1467: 2024: 1976: 1959: 1944: 1590: 1428: 1011: 980: 910: 866: 332: 276: 764: 2008: 1634: 1452:"Smoke 'Em If You Got 'Em: Cigarette Black Markets in U.S. Prisons and Jails" 1286: 934: 850: 846: 783: 689: 444: 428: 296: 208: 1865: 1855: 1792: 1699: 1485: 1061: 1053: 1007: 938: 890: 620: 592: 480: 348: 200: 1765: 1719: 1671: 1618: 1613: 1251: 1096: 1032: 996: 922: 882:
currency backed by government authority and social perceptions of value.
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Radford documented the way that this 'cigarette currency' was subject to
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and their city-state neighbors later developed the earliest system of
1905: 1517: 1403: 1086: 1028: 992: 988: 953: 913:(commodity money) from Kostkowice, Poland, 9th to mid-10th century AD 782:. They wanted goods such as metal knives and axes. Rather than use a 681: 665: 661: 596: 564: 552: 452: 436: 408: 360: 300: 224: 157: 1416: 1130:. Upper Saddle River, New Jersey 07458: Prentice Hall. p. 246. 24: 1775: 1733: 1728: 1595: 957: 886: 862: 743: 717:
The role of a mint and of coin differs between commodity money and
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Dow, Sheila C. (2005). "Axioms and Babylonian thought: a reply".
768: 588: 540: 536: 500: 416: 392: 380: 356: 308: 232: 228: 192: 164:) as well as their value in buying goods. This is in contrast to 1120: 734: 1838: 1797: 1748: 1640: 1607: 1076: 984: 949: 918: 756: 707: 636: 560: 472: 420: 384: 344: 288: 260: 252: 188: 184: 921:
have been used historically in relations of trade and barter (
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using a metric of various commodities, that was fixed in a
703: 699: 580: 524: 520: 464: 412: 364: 340: 336: 268: 256: 180: 134: 130: 987:, which was a certain weight measure of barley, while the 968:, and/or redistribution, substituted for market exchange. 1652: 643:(1945) described the establishment of commodity money in 600: 512: 484: 1502:, about commodity money in the early American colonies. 1319: 1036:
made if both parties agree on a value for the coins.
1689: 1196:"Coins run out as smugglers turn rupees into razors" 1043: 125:
Japanese commodity money before the 8th century AD:
933:due to transport and storage concerns and eventual 841:Long after gold coins became rare in commerce, the 702:money by placing a mark on metal tokens, typically 49:. Unsourced material may be challenged and removed. 1275:"Cigarettes a Thriving Industry in Bleak Sarajevo" 2006: 941:as a durable, easily warehoused store of value ( 897:in 1993 or in Russian-occupied Kherson in 2022. 861:(889 mg) of gold. However, actual trade in 838:, which were stamped pieces of copper or brass. 983:based originally on the commodity money of the 937:. Gold or other metals are sometimes used in a 175:Examples of commodities that have been used as 925:circa 3000 BC), they can be inconvenient as a 1533: 726:exceeding, the fiat face value of the coin. 631:Commodity money is to be distinguished from 1322:"The Code of Hammurabi : Introduction" 1010:, such as buying property and paying legal 1540: 1526: 1475: 1399:"The Economic Organisation of a PoW Camp" 1002:Several centuries after the invention of 109:Learn how and when to remove this message 1449: 1222:"The Fur Trade and Hudson's Bay Company" 904: 857:was technically worth exactly 1/35 of a 809: 733: 120: 1396: 1272: 1193: 1164: 2007: 1547: 1336: 1247:"Troublesome in Europe: Black Markets" 1017: 16:Currency from items of intrinsic value 1906:Commodity theory of money (Metallism) 1521: 746:, the traditional commodity money in 694:In metallic currencies, a government 137:powder. This is the earliest form of 1313: 794:5 pounds of sugar cost 1 beaver pelt 47:adding citations to reliable sources 18: 1345:Journal of Post Keynesian Economics 1342: 13: 1512:Linguistic and Commodity Exchanges 1443: 1255:. Regina, Saskatchewan. 1946-01-05 1194:Oconnor, Ashling (June 16, 2007). 803:1 pair of shoes cost 1 beaver pelt 786:, the fur traders established the 14: 2041: 1883:Akkadian standards of measurement 1493: 1692: 1046: 800:20 fish hooks cost 1 beaver pelt 23: 1569:(W. Mesoamerica & N. Andes) 1371: 1127:Economics: Principles in action 34:needs additional citations for 1357:10.1080/01603477.2005.11051453 1320:Charles F. Horne, PhD (1915). 1299: 1266: 1239: 1214: 1187: 1169: 1158: 1114: 585:Methamphetamine (crystal meth) 1: 1886: 1834:List of historical currencies 1739:Central bank digital currency 1500:Commodity Money: Introduction 1273:Sudetic, Chuck (1993-09-05). 1124:; Steven M. Sheffrin (2003). 1102: 829:along with fractional values. 819: 797:2 scissors cost 1 beaver pelt 1940:Standard of deferred payment 1107: 931:standard of deferred payment 900: 7: 1468:10.1177/0032885501081002002 1039: 10: 2048: 1390: 806:1 gun cost 12 beaver pelts 729: 679: 626: 569:lisdexamfetamine (Vyvanse) 1826: 1709: 1687: 1662: 1627: 1555: 1022:Today, the face value of 675: 573:methylphenidate (Ritalin) 1923:Quantity theory of money 1744:Chattel/movable property 1150:: CS1 maint: location ( 917:Although grains such as 1450:Lankenau, S.E. (2001). 1181:The Wall Street Journal 845:gold repository of the 615:, in various commodity 1982:Complementary currency 1911:Credit theory of money 1871:Depository institution 1397:Radford, R.A. (1945). 979:developed a trade and 914: 830: 751: 654: 577:amphetamine (Adderall) 142: 1965:Digital gold currency 1072:Digital gold currency 908: 874:that purported to be 813: 774:In Canada, where the 737: 680:Further information: 649: 449:pornographic material 389:Canadian Tire "money" 124: 1844:Coincidence of wants 1664:Representative money 816:Hudson's Bay Company 776:Hudson's Bay Company 763:(corn), iron nails, 633:representative money 166:representative money 43:improve this article 1992:Time-based currency 1018:Legal tender issues 825:, representing one 333:alcoholic beverages 311:, etc.), decorated 1861:Clearinghouse bank 1549:Medium of exchange 1456:The Prison Journal 1279:The New York Times 1183:. October 2, 2008. 1122:O'Sullivan, Arthur 927:medium of exchange 915: 831: 752: 143: 2002: 2001: 1987:Sectoral currency 1933:Market monetarism 1896:Code of Hammurabi 1685: 1684: 1677:Gold certificates 1324:. Yale University 1137:978-0-13-063085-8 895:Siege of Sarajevo 836:made beaver coins 664:, and especially 349:smokeware packing 293:breakfast cereals 177:media of exchange 139:Japanese currency 119: 118: 111: 93: 58:"Commodity money" 2037: 1970:Virtual currency 1955:Digital currency 1891: 1888: 1851:Bureau de change 1702: 1697: 1696: 1695: 1628:Domestic animals 1625: 1624: 1542: 1535: 1528: 1519: 1518: 1489: 1479: 1439: 1437: 1436: 1427:. Archived from 1384: 1375: 1369: 1368: 1340: 1334: 1333: 1331: 1329: 1317: 1311: 1310: 1309:. 11 April 2022. 1303: 1297: 1296: 1294: 1293: 1270: 1264: 1263: 1261: 1260: 1243: 1237: 1236: 1234: 1233: 1224:. Archived from 1218: 1212: 1211: 1209: 1207: 1191: 1185: 1184: 1173: 1167: 1162: 1156: 1155: 1149: 1141: 1118: 1092:Private currency 1082:History of money 1056: 1051: 1050: 1049: 1004:cuneiform script 962:market economies 876:as good as gold, 824: 821: 750:until the 1940s. 114: 107: 103: 100: 94: 92: 51: 27: 19: 2047: 2046: 2040: 2039: 2038: 2036: 2035: 2034: 2005: 2004: 2003: 1998: 1950:Unit of account 1889: 1822: 1808:Promissory note 1786:Deposit account 1759:Cheque clearing 1713: 1705: 1698: 1693: 1691: 1681: 1658: 1623: 1591:Precious metals 1558: 1551: 1546: 1496: 1446: 1444:Further reading 1434: 1432: 1417:10.2307/2550133 1411:(48): 189–201. 1393: 1388: 1387: 1376: 1372: 1341: 1337: 1327: 1325: 1318: 1314: 1305: 1304: 1300: 1291: 1289: 1271: 1267: 1258: 1256: 1245: 1244: 1240: 1231: 1229: 1220: 1219: 1215: 1205: 1203: 1192: 1188: 1175: 1174: 1170: 1163: 1159: 1143: 1142: 1138: 1119: 1115: 1110: 1105: 1052: 1047: 1045: 1042: 1020: 956:is attested in 903: 885:Cigarettes and 822: 759:(shell beads), 732: 692: 678: 629: 605:magic mushrooms 433:fast-food items 405:chili con carne 321:sweet beverages 249:turkish delight 162:intrinsic value 146:Commodity money 115: 104: 98: 95: 52: 50: 40: 28: 17: 12: 11: 5: 2045: 2044: 2033: 2032: 2027: 2022: 2017: 2000: 1999: 1997: 1996: 1995: 1994: 1989: 1984: 1977:Local currency 1974: 1973: 1972: 1967: 1962: 1960:Cryptocurrency 1952: 1947: 1945:Store of value 1942: 1937: 1936: 1935: 1930: 1920: 1919: 1918: 1908: 1903: 1900:§100; §122–125 1893: 1890: 2150 BC 1880: 1875: 1874: 1873: 1863: 1858: 1853: 1848: 1847: 1846: 1836: 1830: 1828: 1824: 1823: 1821: 1820: 1815: 1810: 1805: 1800: 1795: 1790: 1789: 1788: 1778: 1773: 1768: 1763: 1762: 1761: 1751: 1746: 1741: 1736: 1731: 1725: 1723: 1707: 1706: 1704: 1703: 1688: 1686: 1683: 1682: 1680: 1679: 1674: 1668: 1666: 1660: 1659: 1657: 1656: 1655:(Tibet, China) 1650: 1644: 1638: 1631: 1629: 1622: 1621: 1616: 1611: 1605: 1599: 1598:(cotton cloth) 1593: 1588: 1582: 1576: 1570: 1563: 1561: 1553: 1552: 1545: 1544: 1537: 1530: 1522: 1516: 1515: 1509: 1503: 1495: 1494:External links 1492: 1491: 1490: 1462:(2): 142–161. 1445: 1442: 1441: 1440: 1392: 1389: 1386: 1385: 1378:31 U.S.C. 1370: 1335: 1312: 1298: 1265: 1238: 1213: 1186: 1168: 1165:Radford (1945) 1157: 1136: 1112: 1111: 1109: 1106: 1104: 1101: 1100: 1099: 1094: 1089: 1084: 1079: 1074: 1069: 1064: 1058: 1057: 1041: 1038: 1019: 1016: 981:market economy 902: 899: 878:and finally a 867:precious metal 808: 807: 804: 801: 798: 795: 731: 728: 677: 674: 628: 625: 117: 116: 31: 29: 22: 15: 9: 6: 4: 3: 2: 2043: 2042: 2031: 2030:Simple living 2028: 2026: 2023: 2021: 2018: 2016: 2013: 2012: 2010: 1993: 1990: 1988: 1985: 1983: 1980: 1979: 1978: 1975: 1971: 1968: 1966: 1963: 1961: 1958: 1957: 1956: 1953: 1951: 1948: 1946: 1943: 1941: 1938: 1934: 1931: 1929: 1926: 1925: 1924: 1921: 1917: 1914: 1913: 1912: 1909: 1907: 1904: 1902:; c. 1750 BC) 1901: 1897: 1894: 1884: 1881: 1879: 1876: 1872: 1869: 1868: 1867: 1864: 1862: 1859: 1857: 1854: 1852: 1849: 1845: 1842: 1841: 1840: 1837: 1835: 1832: 1831: 1829: 1825: 1819: 1816: 1814: 1811: 1809: 1806: 1804: 1801: 1799: 1796: 1794: 1791: 1787: 1784: 1783: 1782: 1779: 1777: 1774: 1772: 1769: 1767: 1764: 1760: 1757: 1756: 1755: 1752: 1750: 1747: 1745: 1742: 1740: 1737: 1735: 1732: 1730: 1727: 1726: 1724: 1721: 1717: 1712: 1708: 1701: 1690: 1678: 1675: 1673: 1670: 1669: 1667: 1665: 1661: 1654: 1651: 1648: 1645: 1642: 1639: 1636: 1635:Water buffalo 1633: 1632: 1630: 1626: 1620: 1617: 1615: 1612: 1609: 1606: 1604:(Roman world) 1603: 1600: 1597: 1594: 1592: 1589: 1586: 1583: 1580: 1577: 1575:(Mesoamerica) 1574: 1571: 1568: 1565: 1564: 1562: 1560: 1554: 1550: 1543: 1538: 1536: 1531: 1529: 1524: 1523: 1520: 1513: 1510: 1507: 1504: 1501: 1498: 1497: 1487: 1483: 1478: 1473: 1469: 1465: 1461: 1457: 1453: 1448: 1447: 1431:on 2008-07-17 1430: 1426: 1422: 1418: 1414: 1410: 1406: 1405: 1400: 1395: 1394: 1383: 1379: 1374: 1366: 1362: 1358: 1354: 1351:(3): 385–91. 1350: 1346: 1339: 1323: 1316: 1308: 1302: 1288: 1284: 1280: 1276: 1269: 1254: 1253: 1248: 1242: 1228:on 2015-01-08 1227: 1223: 1217: 1201: 1197: 1190: 1182: 1178: 1172: 1166: 1161: 1153: 1147: 1139: 1133: 1129: 1128: 1123: 1117: 1113: 1098: 1095: 1093: 1090: 1088: 1085: 1083: 1080: 1078: 1075: 1073: 1070: 1068: 1065: 1063: 1060: 1059: 1055: 1044: 1037: 1034: 1030: 1025: 1015: 1013: 1009: 1005: 1000: 998: 994: 990: 986: 982: 978: 974: 969: 967: 963: 959: 955: 951: 946: 944: 940: 936: 932: 928: 924: 920: 912: 907: 898: 896: 892: 888: 883: 881: 877: 873: 868: 864: 860: 856: 852: 851:gold standard 848: 847:United States 844: 839: 837: 828: 817: 812: 805: 802: 799: 796: 793: 792: 791: 789: 785: 784:barter system 781: 780:First Nations 777: 772: 770: 766: 762: 758: 749: 745: 741: 736: 727: 724: 720: 715: 713: 709: 705: 701: 697: 691: 690:gold standard 687: 683: 673: 669: 667: 663: 659: 658:Gresham's law 653: 648: 646: 642: 638: 634: 624: 622: 618: 614: 610: 606: 602: 601:lysergic acid 598: 594: 593:hallucinogens 590: 586: 582: 578: 574: 570: 566: 562: 558: 554: 550: 546: 542: 538: 534: 530: 526: 522: 518: 514: 510: 506: 502: 498: 497:trading cards 494: 490: 486: 482: 481:aluminum cans 478: 474: 470: 466: 462: 458: 454: 450: 446: 445:fried chicken 442: 438: 434: 430: 429:peanut butter 426: 422: 418: 414: 410: 406: 402: 398: 394: 390: 386: 382: 378: 374: 370: 366: 362: 358: 354: 350: 346: 342: 338: 334: 330: 326: 322: 318: 314: 310: 306: 302: 298: 294: 290: 286: 282: 278: 274: 270: 266: 262: 258: 254: 250: 246: 242: 238: 234: 230: 226: 222: 218: 214: 210: 209:confectionary 206: 202: 198: 194: 190: 186: 182: 178: 173: 171: 167: 163: 159: 156:comes from a 155: 151: 147: 140: 136: 132: 128: 123: 113: 110: 102: 99:February 2022 91: 88: 84: 81: 77: 74: 70: 67: 63: 60: –  59: 55: 54:Find sources: 48: 44: 38: 37: 32:This article 30: 26: 21: 20: 1866:Savings bank 1856:Central bank 1793:Legal tender 1700:Money portal 1556: 1508:, a summary. 1459: 1455: 1433:. Retrieved 1429:the original 1408: 1402: 1373: 1348: 1344: 1338: 1326:. Retrieved 1315: 1301: 1290:. Retrieved 1278: 1268: 1257:. Retrieved 1250: 1241: 1230:. Retrieved 1226:the original 1216: 1204:. Retrieved 1199: 1189: 1180: 1171: 1160: 1126: 1116: 1062:Bullion coin 1054:Money portal 1033:silver coins 1021: 1008:contract law 1001: 970: 947: 939:price system 916: 891:World War II 884: 875: 863:gold bullion 840: 832: 818:tokens used 814:Examples of 773: 765:beaver pelts 753: 739: 716: 693: 670: 655: 650: 630: 621:price system 297:granola bars 174: 145: 144: 105: 96: 86: 79: 72: 65: 53: 41:Please help 36:verification 33: 2015:Commodities 1818:Safekeeping 1672:Bimetallism 1587:(W. Africa) 1506:Commodities 1382:§ 5103 1328:December 8, 1252:Leader-Post 1097:Shell money 989:Babylonians 973:city-states 966:reciprocity 948:The use of 923:Mesopotamia 872:paper money 855:U.S. dollar 827:made beaver 823: 1854 788:made beaver 748:West Africa 712:seigniorage 686:silver coin 645:P.O.W camps 623:economies. 549:hydrocodone 489:bottle caps 425:baked beans 401:corned beef 393:canned food 377:cocoa beans 329:fruit juice 237:chewing gum 221:maple syrup 201:peppercorns 133:grains and 2009:Categories 1928:Monetarism 1916:Chartalism 1813:Redemption 1803:Possession 1766:Clay token 1619:Trade bead 1573:Cocoa bean 1557:Commodity 1435:2009-05-09 1292:2022-03-31 1259:2012-11-28 1232:2015-01-05 1103:References 1067:Debasement 997:legal code 859:troy ounce 719:fiat money 565:stimulants 469:drinkwares 461:dishwasher 453:detergents 441:sandwiches 361:cigarettes 309:spectacles 281:pineapples 170:fiat money 127:arrowheads 69:newspapers 2020:Metallism 1637:(SE Asia) 1567:Axe-money 1404:Economica 1365:153637070 1287:0362-4331 1206:April 30, 1200:The Times 1146:cite book 1108:Citations 1087:Metallism 993:economics 954:red ochre 943:demurrage 909:Axe-like 901:Functions 843:Fort Knox 738:A bronze 682:gold coin 666:deflation 662:inflation 617:valuation 597:mescaline 553:oxycodone 533:batteries 485:fad items 447:, etc.), 409:spaghetti 353:marijuana 301:jewellery 225:chocolate 158:commodity 1776:Currency 1754:Clearing 1734:Banknote 1729:Bailment 1649:(Arabia) 1610:(barley) 1596:Quachtli 1486:18064295 1202:. 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arrowheads
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