A History of Money and GoldSo, people used gold for cash money, which always had a stable value, to trade for the items they wanted and needed.
maple story mesos This way the horse dealer could always trade the gold received from the farmer for the clothing he really wanted instead of having to take the corn.In a history of money and gold, this only posed one problem. Gold was very heavy to carry and hard to conceal. In the beginning of our banking history what people would do is leave their gold with a goldsmith.The goldsmith would
wow power leveling then give them a note, or paper money, that stated how much gold they had on deposit with the goldsmith (bank).The farmer could then take this paper money note, say worth $50 to the horse dealer and buy a horse with it. The horse dealer could then spend this $50 paper note or go back to the goldsmith to pick up
wow power leveling the $50 of gold that he had just acquired by selling the horse to the farmer.Well, why would the horse dealer want to trade in the cash money note for the heavy gold, when he just wanted to trade
archlord gold it for clothing and food anyway. So, the note would continue to trade hands and very few people would ever go redeem it for the gold it was backed by.It didn't take long for the goldsmith to understand this reality. So, here he is storing all of this gold for
buy archlord gold other people. Let's give it a value to make this next principle clear.Let's say the gold he is storing is valued at $1,000 and there are $1,000 in real cash money notes backed by this real gold being circulated.