The history of money

At different periods of time and in different parts of the world many different commodities have served as money. These commodities were: cattle, sheep, leather, fish, tobacco, tea, salt and others.

Commodity should be fairy durable, easily divisible and portable that to serve effectively as money. None of the above-mentioned commodities possessed all this qualities, and in time they were replaced by precious metals, first by silver, later by gold. The coins came into use, when metal was cutting into definite weight, when the payment was made.

Paper money first came into use in the form of receipts given by goldsmiths in exchange for deposits of silver and gold coins. Then, when goldsmiths became bankers their receipts became banknotes. That's how the first banknotes came into existence.