Intheearlieststagesofman’sdevelopmenthehadnomoreneedofmoneythananimalshave.Hewascontentwithsimpleformsofshelterandfromnaturalmaterialsaroundhim,hemadehisownroughtoolsandweapons.Ashebecamemorecivilized,however,hebegantowantbettershelter,moreefficienttoolsandweapons,andmorecomfortableclothingthancouldbeprovidedbytheworkofhisownunskilledhands.
Forthesethingshehadtoturntotheskilledpeoplesuchassmithsandcarpenterswhowerespringingupeverywhere.Itwasthenthatthequestionofpaymentarose.Atfirsthegotwhathewantedbyasimpleprocessofexchange.Thesmithwhohadnotthetimetolookafterlandorcattlewasgladtotakemeatorgrainfromthefarmerinexchangeforanaxeoraplough.Butasmoreandmoregoodswhichhadnofixedexchangevaluecameonthemarket,exchangebecametoocomplicatedtobesatisfactory.
Anotherproblemsarosewhenthosewhomadethingswantedtogetstocksofwood,leatheroriron,buthadnothingtoofferinexchangeuntiltheirfinishedgoodswereready.Thusthedifficultiesofexchangeledbydegreestotheinventionofmoney.Insomecountries,easilyhandledthingslikeseedsorshellsweregivenacertainvalueandthefarmer,insteadofpayingthesmithforanewaxebygivinghimsomemeatorgrain,gavehimsomanyshells.
Ifthesmithhadanyshellsleftwhenhehadboughthisfood,hecouldgetstocksoftherawmaterialsofhistrade.Insomecountriesquitelargethingssuchascowsorcamelsorevenbigflatstoneswereusedfortrade.Later,piecesofmetal,bearingvaluesaccordingtotherarityofthemetalandthesizeofthepiecesofcoinswereused.Moneyasweknowithadarrived.