,*APT] #b 
,! ,MY? ( ,B>T] 

,PEOPLE 3 

,AU?OR 3 ,DAVID ,GRAEB] 

,TEXT 3 

,! ,MY? ( ,B>T] 

  
  

,= EV]Y SUBTLE & COMPLICAT$ QUE/ION1 !RE IS A P]FECTLY SIMPLE & /RAI<T=W>D ANSW]1 :I* IS WRONG4 

--,H4,L4 ,M5CK5  
  

,:AT IS ! DIFF]5CE BETWE5 A M]E OBLIGATION1 A S5SE ?AT ONE \<T TO BEHAVE 9 A C]TA9 WAY1 OR EV5 ?AT ONE [ES SOME?+ TO SOMEONE1 & A DEBT1 PROP]LY SPEAK+8 ,! ANSW] IS SIMPLE3 MONEY4 ,! DIFF]5CE BETWE5 A DEBT & AN OBLIGATION IS ?AT A DEBT CAN BE PRECISELY QUANTIFI$4 ,?IS REQUIRES MONEY4 

,NOT ONLY IS IT MONEY ?AT MAKES DEBT POSSIBLE3 MONEY & DEBT APPE> ON ! SC5E AT EXACTLY ! SAME TIME4 ,SOME ( ! V]Y FIR/ WRITT5 DOCUM5TS ?AT HAVE COME D[N TO US >E ,MESOPOTAMIAN TABLETS RECORD+ CR$ITS & DEBITS1 RATIONS ISSU$ BY TEMPLES1 MONEY [$ = R5T ( TEMPLE L&S1 ! VALUE ( EA* PRECISELY SPECIFI$ 9 GRA9 & SILV]4 ,SOME ( ! E>LIE/ WORKS ( MORAL PHILOSOPHY1 9 TURN1 >E REFLECTIONS ON :AT IT MEANS TO IMAG9E MORALITY AS DEBT--?AT IS1 9 T]MS ( MONEY4 

,A HI/ORY ( DEBT1 !N1 IS ?US NECESS>ILY A HI/ORY ( MONEY--& ! EASIE/ WAY TO UND]/& ! ROLE ?AT DEBT HAS PLAY$ 9 HUMAN SOCIETY IS SIMPLY TO FOLL[ ! =MS ?AT MONEY HAS TAK51 & ! WAY MONEY HAS BE5 US$1 ACROSS ! C5TURIES--& ! >GUM5TS ?AT 9EVITABLY 5SU$ AB\T :AT ALL ?IS MEANS4 ,/ILL1 ?IS IS NECESS>ILY A V]Y DIFF]5T HI/ORY ( MONEY ?AN WE >E US$ TO4 ,:5 ECONOMI/S SPEAK ( ! ORIG9S ( MONEY1 = EXAMPLE1 DEBT IS ALWAYS SOME?+ ( AN AFT]?\<T4 ,FIR/ COMES B>T]1 !N MONEY2 CR$IT ONLY DEVELOPS LAT]4 ,EV5 IF ONE CONSULTS BOOKS ON ! HI/ORY ( MONEY 91 SAY1 ,FRANCE1 ,9DIA1 OR ,*9A1 :AT ONE G5]ALLY GETS IS A HI/ORY ( CO9AGE1 ) B>ELY ANY DISCUSSION ( CR$IT >RANGEM5TS AT ALL4 ,= ALMO/ A C5TURY1 AN?ROPOLOGI/S LIKE ME HAVE BE5 PO9T+ \T ?AT !RE IS SOME?+ V]Y WRONG ) ?IS PICTURE4 ,! /&>D ECONOMIC-HI/ORY V]SION HAS LITTLE TO DO ) ANY?+ WE OBS]VE :5 WE EXAM9E H[ ECONOMIC LIFE IS ACTUALLY CONDUCT$1 9 REAL COMMUNITIES & M>KETPLACES1 ALMO/ ANY:]E--:]E ONE IS MU* MORE LIKELY TO DISCOV] EV]YONE 9 DEBT TO EV]YONE ELSE 9 A DOZ5 DIFF]5T WAYS1 & ?AT MO/ TRANSACTIONS TAKE PLACE )\T ! USE ( CURR5CY4 

,:Y ! DISCREPANCY8 

,SOME ( IT IS JU/ ! NATURE ( ! EVID5CE3 CO9S >E PRES]V$ 9 ! >*AEOLOGICAL RECORD2 CR$IT >RANGEM5TS USUALLY >E NOT4 ,/ILL1 ! PROBLEM RUNS DEEP]4 ,! EXI/5CE ( CR$IT & DEBT HAS ALWAYS BE5 SOME?+ ( A SC&AL = ECONOMI/S1 S9CE IT'S ALMO/ IMPOSSIBLE TO PRET5D ?AT ?OSE L5D+ & BORR[+ MONEY >E ACT+ ON PURELY 0ECONOMIC0 MOTIVATIONS 7= 9/ANCE1 ?AT A LOAN TO A /RANG] IS ! SAME AS A LOAN TO ONE'S C\S972 IT SEEMS IMPORTANT1 !RE=E1 TO BEG9 ! /ORY ( MONEY 9 AN IMAG9>Y WORLD FROM :I* CR$IT & DEBT HAVE BE5 5TIRELY ]AS$4 ,BE=E WE CAN APPLY ! TOOLS ( AN?ROPOLOGY TO RECON/RUCT ! REAL HI/ORY ( MONEY1 WE NE$ TO UND]/& :AT'S WRONG ) ! CONV5TIONAL ACC\NT4 

,ECONOMI/S G5]ALLY SPEAK ( ?REE FUNCTIONS ( MONEY3 M$IUM ( EX*ANGE1 UNIT ( ACC\NT1 & /ORE ( VALUE4 ,ALL ECONOMIC TEXTBOOKS TREAT ! FIR/ AS PRIM>Y4 ,H]E'S A FAIRLY TYPICAL EXTRACT FROM ,ECONOMICS1 BY ,CASE1 ,FAIR1 ,G>TN]1 & ,HEA!R 7#a#i#i#f73 

,MONEY IS VITAL TO ! WORK+ ( A M>KET ECONOMY4 ,IMAG9E :AT LIFE W\LD BE LIKE )\T IT4 ,! ALT]NATIVE TO A MONET>Y ECONOMY IS B>T]1 PEOPLE EX*ANG+ GOODS & S]VICES = O!R GOODS & S]VICES DIRECTLY 9/EAD ( EX*ANG+ VIA ! M$IUM ( MONEY4 

,H[ DOES A B>T] SY/EM WORK8 ,SUPPOSE Y\ WANT CROISSANTS1 EGGS & ORANGE JUICE = BREAKFA/4 ,9/EAD ( GO+ TO ! GROC]'S & BUY+ !SE ?+S ) MONEY1 Y\ W\LD HAVE TO F9D SOMEONE :O HAS !SE ITEMS & IS WILL+ TO TRADE !M4 ,Y\ W\LD ALSO HAVE TO HAVE SOME?+ ! BAK]1 ! ORANGE JUICE PURVEYOR & ! EGG V5DOR WANT4 ,HAV+ P5CILS TO TRADE WILL DO Y\ NO GOOD IF ! BAK] & ! ORANGE JUICE & EGG SELL]S DO NOT WANT P5CILS4 

,A B>T] SY/EM REQUIRES A D\BLE CO9CID5CE ( WANTS = TRADE TO TAKE PLACE4 ,?AT IS1 TO EFFECT A TRADE1 ,I NE$ NOT ONLY HAVE TO F9D SOMEONE :O HAS :AT ,I WANT1 BUT ?AT P]SON MU/ ALSO WANT :AT ,I HAVE4 ,:]E ! RANGE ( TRAD$ GOODS IS SMALL1 AS IT IS 9 RELATIVELY UNSOPHI/ICAT$ ECONOMIES1 IT IS NOT DIFFICULT TO F9D SOMEONE TO TRADE )1 & B>T] IS (T5 US$4.<#a#f.> 

,?IS LATT] PO9T IS QUE/IONABLE1 BUT IT'S PHRAS$ 9 SO VAGUE A WAY ?AT IT W\LD BE H>D TO DISPROVE4 

,9 A COMPLEX SOCIETY ) MANY GOODS1 B>T] EX*ANGES 9VOLVE AN 9TOL]ABLE AM\NT ( EF=T4 ,IMAG9E TRY+ TO F9D PEOPLE :O (F] = SALE ALL ! ?+S Y\ BUY 9 A TYPICAL TRIP TO ! GROC]'S1 & :O >E WILL+ TO ACCEPT GOODS ?AT Y\ HAVE TO (F] 9 EX*ANGE = !IR GOODS4 

,SOME AGRE$-UPON M$IUM ( EX*ANGE 7OR MEANS ( PAYM5T7 NEATLY ELIM9ATES ! D\BLE CO9CID5CE ( WANTS PROBLEM4.<#a#g.> 

,IT'S IMPORTANT TO EMPHASIZE ?AT ?IS IS NOT PRES5T$ AS SOME?+ ?AT ACTUALLY HAPP5$1 BUT AS A PURELY IMAG9>Y EX]CISE4 0,TO SEE ?AT SOCIETY B5EFITS FROM A M$IUM ( EX*ANGE0 WRITE ,BEGG1 ,FIS*] & ,DORNBU* 7,ECONOMICS1 #b#e71 0IMAG9E A B>T] ECONOMY40 0,IMAG9E ! DIFFICULTY Y\ W\LD HAVE TODAY10 WRITE ,MAUND]1 ,MY]S1 ,WALL1 & ,MILL] 7,ECONOMICS ,EXPLA9$1 #a#i#i#a71 0IF Y\ HAD TO EX*ANGE Y\R LABOR DIRECTLY = ! FRUITS ( SOMEONE ELSE'S LABOR40 0,IMAG9E10 WRITE ,P>K9 & ,K+ 7,ECONOMICS1 #a#i#i#e71 0Y\ HAVE ROO/]S1 BUT Y\ WANT ROSES40.<#a#h.> ,ONE C\LD MULTIPLY EXAMPLES 5DLESSLY4 ,JU/ AB\T EV]Y ECONOMICS TEXTBOOK EMPLOY$ TODAY SETS \T ! PROBLEM ! SAME WAY4 ,HI/ORICALLY1 !Y NOTE1 WE KN[ ?AT !RE WAS A TIME :5 !RE WAS NO MONEY4 ,:AT MU/ IT HAVE BE5 LIKE8 ,WELL1 LET US IMAG9E AN ECONOMY SOME?+ LIKE TODAY'S1 EXCEPT ) NO MONEY4 ,?AT W\LD HAVE BE5 DECID$LY 9CONV5I5T6 ,SURELY1 PEOPLE MU/ HAVE 9V5T$ MONEY = ! SAKE ( EFFICI5CY4 

,! /ORY ( MONEY = ECONOMI/S ALWAYS BEG9S ) A FANTASY WORLD ( B>T]4 ,! PROBLEM IS :]E TO LOCATE ?IS FANTASY 9 TIME & SPACE3 ,>E WE TALK+ AB\T CAVE M51 ,PACIFIC ,ISL&]S1 ! ,AM]ICAN FRONTI]8 ,ONE TEXTBOOK1 BY ECONOMI/S ,JOSEPH ,/IGLITZ & ,JOHN ,DRIFFILL1 TAKES US TO :AT APPE>S TO BE AN IMAG9>Y ,NEW ,5GL& OR ,MIDWE/]N T[N3 

,ONE CAN IMAG9E AN OLD-/YLE F>M] B>T]+ ) ! BLACKSMI?1 ! TAILOR1 ! GROC]1 & ! DOCTOR 9 HIS SMALL T[N4 ,= SIMPLE B>T] TO WORK1 H[EV]1 !RE MU/ BE A D\BLE CO9CID5CE ( WANTS 444 ,H5RY HAS POTATOES & WANTS %OES1 ,JO%UA HAS AN EXTRA PAIR ( %OES & WANTS POTATOES4 ,B>T]+ CAN MAKE !M BO? HAPPI]4 ,BUT IF ,H5RY HAS FIREWOOD & ,JO%UA DOES NOT NE$ ANY ( ?AT1 !N B>T]+ = ,JO%UA'S %OES REQUIRES ONE OR BO? ( !M TO GO SE>*+ = MORE PEOPLE 9 ! HOPE ( MAK+ A MULTILAT]AL EX*ANGE4 ,MONEY PROVIDES A WAY TO MAKE MULTILAT]AL EX*ANGE MU* SIMPL]4 ,H5RY SELLS HIS FIREWOOD TO SOMEONE ELSE = MONEY & USES ! MONEY TO BUY ,JO%UA'S %OES4.<#a#i.> 

,AGA9 ?IS IS JU/ A MAKE-BELIEVE L& MU* LIKE ! PRES5T1 EXCEPT ) MONEY SOMEH[ PLUCK$ AWAY4 ,AS A RESULT IT MAKES NO S5SE3 ,:O 9 !IR RI<T M9D W\LD SET UP A GROC]Y 9 SU* A PLACE8 ,& H[ W\LD !Y GET SUPPLIES8 ,BUT LET'S LEAVE ?AT ASIDE4 ,!RE IS A SIMPLE REASON :Y EV]YONE :O WRITES AN ECONOMICS TEXTBOOK FEELS !Y HAVE TO TELL US ! SAME /ORY4 ,= ECONOMI/S1 IT IS 9 A V]Y REAL S5SE ! MO/ IMPORTANT /ORY EV] TOLD4 ,IT WAS BY TELL+ IT1 9 ! SIGNIFICANT YE> ( #a#g#g#f1 ?AT ,ADAM ,SMI?1 PR(ESSOR ( MORAL PHILOSOPHY AT ! ,UNIV]SITY ( ,GLASG[1 EFFECTIVELY BR\<T ! DISCIPL9E ( ECONOMICS 9TO BE+4 

,HE DID NOT MAKE UP ! /ORY 5TIRELY \T ( :OLE CLO?4 ,ALREADY 9 #cc BC1 ,>I/OTLE WAS SPECULAT+ ALONG VAGUELY SIMIL> L9ES 9 HIS TREATISE ON POLITICS4 ,AT FIR/1 HE SUGGE/$1 FAMILIES MU/ HAVE PRODUC$ EV]Y?+ !Y NE$$ = !MSELVES4 ,GRADUALLY1 SOME W\LD PRESUMABLY HAVE SPECIALIZ$1 SOME GR[+ CORN1 O!RS MAK+ W9E1 SWAPP+ ONE = ! O!R4.<#b.> ,MONEY1 ,>I/OTLE ASSUM$1 MU/ HAVE EM]G$ FROM SU* A PROCESS4 ,BUT1 LIKE ! M$IEVAL S*OOLM5 :O OCCASIONALLY REPEAT$ ! /ORY1 ,>I/OTLE WAS NEV] CLE> AS TO H[4.<#b#a.> 

,9 ! YE>S AFT] ,COLUMBUS1 AS ,SPANI% & ,PORTUGUESE ADV5TUR]S W]E SC\R+ ! WORLD = NEW S\RCES ( GOLD & SILV]1 !SE VAGUE /ORIES DISAPPE>4 ,C]TA9LY NO ONE REPORT$ DISCOV]+ A L& ( B>T]4 ,MO/ SIXTE5?- & SEV5TE5?-C5TURY TRAVEL]S 9 ! ,WE/ ,9DIES OR ,AFRICA ASSUM$ ?AT ALL SOCIETIES W\LD NECESS>ILY HAVE !IR [N =MS ( MONEY1 S9CE ALL SOCIETIES HAD GOV]NM5TS & ALL GOV]NM5TS ISSU$ MONEY4.<#b#b.> 

,ADAM ,SMI?1 ON ! O!R H&1 WAS DET]M9$ TO OV]TURN ! CONV5TIONAL WISDOM ( HIS DAY4 ,ABOVE ALL1 HE OBJECT$ TO ! NOTION ?AT MONEY WAS A CREATION ( GOV]NM5T4 ,9 ?IS1 ,SMI? WAS ! 9TELLECTUAL HEIR ( ! ,LIB]AL TRADITION ( PHILOSOPH]S LIKE ,JOHN ,LOCKE1 :O HAD >GU$ ?AT GOV]NM5T BEG9S 9 ! NE$ TO PROTECT PRIVATE PROP]TY & OP]AT$ BE/ :5 IT TRI$ TO LIMIT ITSELF TO ?AT FUNCTION4 ,SMI? EXP&$ ON ! >GUM5T1 9SI/+ ?AT PROP]TY1 MONEY & M>KETS NOT ONLY EXI/$ BE=E POLITICAL 9/ITUTIONS BUT W]E ! V]Y F\NDATION ( HUMAN SOCIETY4 ,IT FOLL[$ ?AT 9S(> AS GOV]NM5T %\LD PLAY ANY ROLE 9 MONET>Y AFFAIRS1 IT %\LD LIMIT ITSELF TO GU>ANTEE+ ! S\NDNESS ( ! CURR5CY4 ,IT WAS ONLY BY MAK+ SU* AN >GUM5T ?AT HE C\LD 9SI/ ?AT ECONOMICS IS ITSELF A FIELD ( HUMAN 9QUIRY ) ITS [N PR9CIPLES & LAWS--?AT IS1 AS DI/9CT FROM1 SAY E?ICS OR POLITICS4 

,SMI?'S >GUM5T IS WOR? LAY+ \T 9 DETAIL BECAUSE IT IS1 AS ,I SAY1 ! GREAT F\ND+ MY? ( ! DISCIPL9E ( ECONOMICS4 

,:AT1 HE BEG9S1 IS ! BASIS ( ECONOMIC LIFE1 PROP]LY SPEAK+8 ,IT IS 0A C]TA9 PROP5SITY 9 HUMAN NATURE 444 ! PROP5SITY TO TRUCK1 B>T]1 & EX*ANGE ONE ?+ = ANO!R40 ,ANIMALS DON'T DO ?IS4 0,NOBODY10 ,SMI? OBS]VES1 0EV] SAW A DOG MAKE A FAIR & DELIB]ATE EX*ANGE ( ONE BONE = ANO!R ) ANO!R DOG40.<#b#c.> ,BUT HUMANS1 IF LEFT TO !IR [N DEVICES1 WILL 9EVITABLY BEG9 SWAPP+ & COMP>+ ?+S4 ,?IS IS JU/ :AT HUMANS DO4 ,EV5 LOGIC & CONV]SATION >E REALLY JU/ =MS ( TRAD+1 & AS 9 ALL ?+S1 HUMANS WILL ALWAYS TRY TO SEEK !IR [N BE/ ADVANTAGE1 TO SEEK ! GREATE/ PR(IT !Y CAN FROM ! EX*ANGE4.<#b#d.> 

,IT IS ?IS DRIVE TO EX*ANGE1 9 TURN1 :I* CREATES ?AT DIVISION ( LABOR RESPONSIBLE = ALL HUMAN A*IEVEM5T & CIVILIZATION4 ,H]E ! SC5E %IFTS TO ANO!R ONE ( ?OSE ECONOMI/S' F>AWAY FANTASYL&S--IT SEEMS TO BE AN AMALGAM ( ,NOR? ,AM]ICAN ,9DIANS & ,C5TRAL ,ASIAN PA/ORAL NOMADS3.<#b#e.> 

,9 A TRIBE ( HUNT]S OR %EPH]DS A P>TICUL> P]SON MAKES B[S & >R[S1 = EXAMPLE1 ) MORE READ9ESS & DEXT]ITY ?AN ANY O!R4 ,HE FREQU5TLY EX*ANGES !M = CATTLE OR = V5ISON ) HIS COMPANIONS2 & HE F9DS AT LA/ ?AT HE CAN 9 ?IS MANN] GET MORE CATTLE & V5ISON1 ?AN IF HE HIMSELF W5T TO ! FIELD TO CAT* !M4 ,FROM A REG>D TO HIS [N 9T]E/1 !RE=E1 ! MAK+ ( B[S & >R[S GR[S TO BE HIS *IEF BUS9ESS1 & HE BECOMES A SORT ( >MOR]4 ,ANO!R EXCELS 9 MAK+ ! FRAMES & COV]S ( !IR LITTLE HUTS OR MOVABLE H\SES4 ,HE IS ACCU/OM$ TO BE ( USE 9 ?IS WAY TO HIS NEI<BORS1 :O REW>D HIM 9 ! SAME MANN] ) CATTLE & ) V5ISON1 TILL AT LA/ HE F9DS IT HIS 9T]E/ TO D$ICATE HIMSELF 5TIRELY TO ?IS EMPLOYM5T1 & TO BECOME A SORT ( H\SE-C>P5T]4 ,9 ! SAME MANN] A ?IRD BECOMES A SMI? OR A BRAZI]2 A F\R? A TANN] OR DRESS] ( HIDES OR SK9S1 ! PR9CIPAL P>T ( ! CLO?+ ( SAVAGES 444 

,IT'S ONLY ONCE WE HAVE EXP]T >R[-MAK]S1 WIGWAM-MAK]S1 & SO ON ?AT PEOPLE />T REALIZ+ !RE'S A PROBLEM4 ,NOTICE H[1 AS 9 SO MANY EXAMPLES1 WE HAVE A T5D5CY TO SLIP FROM IMAG9>Y SAVAGES TO SMALL-T[N %OPKEEP]S4 

,BUT :5 ! DIVISION ( LABOR FIR/ BEGAN TO TAKE PLACE1 ?IS P[] ( EX*ANG+ MU/ FREQU5TLY HAVE BE5 V]Y MU* CLOGG$ & EMB>RASS$ 9 ITS OP]ATIONS4 ,ONE MAN1 WE %ALL SUPPOSE1 HAS MORE ( A C]TA9 COMMODITY ?AN HE HIMSELF HAS OCCASION =1 :ILE ANO!R HAS LESS4 ,! =M] CONSEQU5TLY W\LD BE GLAD TO DISPOSE (1 & ! LATT] TO PUR*ASE1 A P>T ( ?IS SUP]FLUITY4 ,BUT IF ?IS LATT] %\LD *ANCE TO HAVE NO?+ ?AT ! =M] /&S 9 NE$ (1 NO EX*ANGE CAN BE MADE BETWE5 !M4 ,! BUT*] HAS MORE MEAT 9 HIS %OP ?AN HE HIMSELF CAN CONSUME1 & ! BREW] & ! BAK] W\LD EA* ( !M BE WILL+ TO PUR*ASE A P>T ( IT4 ,BUT !Y HAVE NO?+ TO (F] 9 EX*ANGE 444 

,9 ORD] TO AVOID ! 9CONV5I5CY ( SU* SITUATIONS1 EV]Y PRUD5T MAN 9 EV]Y P]IOD ( SOCIETY1 AFT] ! FIR/ E/ABLI%M5T ( ! DIVISION ( LABOR1 MU/ NATURALLY HAVE 5DEAVOR$ TO MANAGE HIS AFFAIRS 9 SU* A MANN]1 AS TO HAVE AT ALL TIMES BY HIM1 BESIDES ! PECULI> PRODUCE ( HIS [N 9DU/RY1 A C]TA9 QUANTITY ( SOME ONE COMMODITY OR O!R1 SU* AS HE IMAG9$ ?AT FEW PEOPLE W\LD BE LIKELY TO REFUSE 9 EX*ANGE = ! PRODUCE ( !IR 9DU/RY4.<#b#f.> 

,SO EV]YONE WILL 9EVITABLY />T /OCKPIL+ SOME?+ !Y FIGURE ?AT EV]YONE ELSE IS LIKELY TO WANT4 ,?IS HAS A P>ADOXICAL EFFECT1 BECAUSE AT A C]TA9 PO9T1 RA!R ?AN MAK+ ?AT COMMODITY LESS VALUABLE 7S9CE EV]YONE ALREADY HAS SOME7 IT BECOMES MORE VALUABLE 7BECAUSE IT BECOMES1 EFFECTIVELY1 CURR5CY73 

,SALT IS SAID TO BE ! COMMON 9/RUM5T ( COMM]CE & EX*ANGES 9 ,ABYSS9IA2 A SPECIES ( %ELLS 9 SOME P>TS ( ! COA/ ( ,9DIA2 DRI$ COD AT ,NEWF\NDL&2 TOBACCO 9 ,VIRG9IA2 SUG> 9 SOME ( \R ,WE/ ,9DIA COLONIES2 HIDES OR DRESS$ LEA!R 9 SOME O!R C\NTRIES2 & !RE IS AT ?IS DAY A VILLAGE 9 ,SCOTL& :]E IT IS NOT UNCOMMON1 ,I AM TOLD1 = A WORKMAN TO C>RY NAILS 9/EAD ( MONEY TO ! BAK]'S %OP OR ! ALE-H\SE4.<#b#g.> 

,EV5TUALLY1 ( C\RSE1 AT LEA/ = LONG-DI/ANCE TRADE1 IT ALL BOILS D[N TO PRECI\S METALS1 S9CE !SE >E IDEALLY SUIT$ TO S]VE AS CURR5CY1 BE+ DURABLE1 PORTABLE1 & ABLE TO BE 5DLESSLY SUBDIVID$ 9TO ID5TICAL PORTIONS4 

,DIFF]5T METALS HAVE BE5 MADE USE ( BY DIFF]5T NATIONS = ?IS PURPOSE4 ,IRON WAS ! COMMON 9/RUM5T ( COMM]CE AMONG ! ANCI5T ,SP>TANS2 COPP] AMONG ! ANCI5T ,ROMANS2 & GOLD & SILV] AMONG ALL RI* & COMM]CIAL NATIONS4 

,?OSE METALS SEEM ORIG9ALLY TO HAVE BE5 MADE USE ( = ?IS PURPOSE 9 RUDE B>S1 )\T ANY /AMP OR CO9AGE 444 

,! USE ( METALS 9 ?IS RUDE /ATE WAS ATT5D$ ) TWO V]Y CONSID]ABLE 9CONV5I5CIES2 FIR/ ) ! TR\BLE ( WEI<+2 &1 SECONDLY1 ) ?AT ( ASSAY+ !M4 ,9 ! PRECI\S METALS1 :]E A SMALL DIFF]5CE 9 ! QUANTITY MAKES A GREAT DIFF]5CE 9 ! VALUE1 EV5 ! BUS9ESS ( WEI<+1 ) PROP] EXACTNESS1 REQUIRES AT LEA/ V]Y ACCURATE WEI<TS & SCALES4 ,! WEI<+ ( GOLD 9 P>TICUL> IS AN OP]ATION ( SOME NICETY 444.<#b#h.> 

,IT'S EASY TO SEE :]E ?IS IS GO+4 ,US+ IRREGUL> METAL +OTS IS EASI] ?AN B>T]1 BUT W\LDN'T /&>DIZ+ ! UNITS--SAY1 /AMP+ PIECES ( METAL ) UNI=M DESIGNATIONS GU>ANTEE+ WEI<T & F95ESS1 9 DIFF]5T D5OM9ATIONS--MAKE ?+S EASI] /ILL8 ,CLE>LY IT W\LD1 & SO WAS CO9AGE BORN4 ,TRUE1 ISSU+ CO9AGE MEANT GOV]NM5TS HAD TO GET 9VOLV$1 S9CE !Y G5]ALLY RAN ! M9TS2 BUT 9 ! /&>D V]SION ( ! /ORY1 GOV]NM5TS HAVE ONLY ?IS ONE LIMIT$ ROLE--TO GU>ANTEE ! MONEY SUPPLY--& T5D TO DO IT BADLY1 S9CE ?R\<\T HI/ORY1 UNSCRUPUL\S K+S HAVE (T5 *EAT$ BY DEBAS+ ! CO9AGE & CAUS+ 9FLATION & O!R SORTS ( POLITICAL HAVOC 9 :AT WAS ORIG9ALLY A MATT] ( SIMPLE ECONOMIC COMMON S5SE4 

,TELL+LY1 ?IS /ORY PLAY$ A CRUCIAL ROLE NOT ONLY 9 F\ND+ ! DISCIPL9E ( ECONOMICS1 BUT 9 ! V]Y IDEA ?AT !RE WAS SOME?+ CALL$ 0! ECONOMY10 :I* OP]AT$ BY ITS [N RULES1 SEP>ATE FROM MORAL OR POLITICAL LIFE1 ?AT ECONOMI/S C\LD TAKE AS !IR FIELD ( /UDY4 0,! ECONOMY0 IS :]E WE 9DULGE 9 \R NATURAL PROP5SITY TO TRUCK & B>T]4 ,WE >E /ILL TRUCK+ & B>T]+4 ,WE ALWAYS WILL BE4 ,MONEY IS SIMPLY ! MO/ EFFICI5T MEANS4 

,ECONOMI/S LIKE ,K>L ,M5G] & ,/ANLEY ,JEVONS LAT] IMPROV$ ON ! DETAILS ( ! /ORY1 MO/ ( ALL BY ADD+ V>I\S MA!MATICAL EQUATIONS TO DEMON/RATE ?AT A R&OM ASSORTM5T ( PEOPLE ) R&OM DESIRES C\LD1 9 !ORY1 PRODUCE NOT ONLY A S+LE COMMODITY TO USE AS MONEY BUT A UNI=M PRICE SY/EM4 ,9 ! PROCESS1 !Y ALSO SUB/ITUT$ ALL SORTS ( IMPRESSIVE TE*NICAL VOCABUL>Y 7I4E41 09CONV5I5CES0 BECAME 0TRANSACTION CO/S074 ,! CRUCIAL ?+1 ?\<1 IS ?AT BY N[1 ?IS /ORY HAS BECOME SIMPLE COMMON S5SE = MO/ PEOPLE4 ,WE TEA* IT TO *ILDR5 9 S*OOLBOOKS & MUSEUMS4 ,EV]YBODY KN[S IT4 0,ONCE UPON A TIME1 !RE WAS B>T]4 ,IT WAS DIFFICULT4 ,SO PEOPLE 9V5T$ MONEY4 ,!N CAME ! DEVELOPM5T ( BANK+ & CR$IT40 ,IT ALL =MS A P]FECTLY SIMPLE1 /RAI<T=W>D PROGRESSION1 A PROCESS ( 9CREAS+ SOPHI/ICATION & AB/RACTION ?AT HAS C>RI$ HUMANITY1 LOGICALLY & 9EXORABLY1 FROM ! ,/ONE ,AGE EX*ANGE ( MA/ODON TUSKS TO /OCK M>KETS1 H$GE FUNDS1 & SECURITIZ$ D]IVATIVES4.<#b#i.> 

,IT REALLY HAS BECOME UBIQUIT\S4 ,:]EV] WE F9D MONEY1 WE ALSO F9D ! /ORY4 ,AT ONE PO9T1 9 ! T[N ( ,>IVONIMAMO1 9 ,MADAGASC>1 ,I HAD ! PRIVILEGE ( 9T]VIEW+ A ,KALANORO1 A T9Y <O/LY CREATURE ?AT A LOCAL SPIRIT M$IUM CLAIM$ TO KEEP HIDD5 AWAY 9 A *E/ 9 HIS HOME4 ,! SPIRIT BELONG$ TO ! BRO!R ( A NOTORI\S LOCAL LOAN %>K1 A HORRIBLE WOMAN NAM$ ,NORD9E1 & TO BE HONE/ ,I WAS A BIT RELUCTANT TO HAVE ANY?+ TO DO ) ! FAMILY1 BUT SOME ( MY FRI5DS 9SI/$--S9CE AFT] ALL1 ?IS WAS A CREATURE FROM ANCI5T TIMES4 ,! CREATURE SPOKE FROM BEH9D A SCRE5 9 AN E]IE1 O!RWORLDLY QUAV]4 ,BUT ALL IT WAS REALLY 9T]E/$ 9 TALK+ AB\T WAS MONEY4 ,F9ALLY1 SLI<TLY EXASP]AT$ BY ! :OLE *>ADE1 ,I ASK$1 0,SO1 :AT DID Y\ USE = MONEY BACK 9 ANCI5T TIMES1 :5 Y\ W]E /ILL ALIVE80 

,! MY/]I\S VOICE IMM$IATELY REPLI$1 0,NO4 ,WE DIDN'T USE MONEY4 ,9 ANCI5T TIMES WE US$ TO B>T] COMMODITIES DIRECTLY1 ONE = ! O!R 4440 

,! /ORY1 !N1 IS EV]Y:]E4 ,IT IS ! F\ND+ MY? ( \R SY/EM ( ECONOMIC RELATIONS4 ,IT IS SO DEEPLY E/ABLI%$ 9 COMMON S5SE1 EV5 9 PLACES LIKE ,MADAGASC>1 ?AT MO/ PEOPLE ON E>? C\LDN'T IMAG9E ANY O!R WAY ?AT MONEY POSSIBLY C\LD HAVE COME AB\T4 

,! PROBLEM IS !RE'S NO EVID5CE ?AT IT EV] HAPP5$1 & AN 5ORM\S AM\NT ( EVID5CE SUGGE/+ ?AT IT DID NOT4 

,= C5TURIES N[1 EXPLOR]S HAVE BE5 TRY+ TO F9D ?IS FABL$ L& ( B>T]--NONE ) SUCCESS4 ,ADAM ,SMI? SET HIS /ORY 9 ABORIG9AL ,NOR? ,AM]ICA 7O!RS PREF]R$ ,AFRICA OR ! ,PACIFIC74 ,9 ,SMI?'S TIME1 AT LEA/ IT C\LD BE SAID ?AT RELIABLE 9=MATION ON ,NATIVE ,AM]ICAN ECONOMIC SY/EMS WAS UNAVAILABLE 9 ,SCOTTI% LIBR>IES4 ,BUT BY MID-C5TURY1 ,LEWIS ,H5RY ,MORGAN'S DESCRIPTIONS ( ! ,SIX ,NATIONS ( ! ,IROQUOIS1 AMONG O!RS1 W]E WIDELY PUBLI%$--& !Y MADE CLE> ?AT ! MA9 ECONOMIC 9/ITUTION AMONG ! ,IROQUOIS NATIONS W]E LON<\SES :]E MO/ GOODS W]E /OCKPIL$ & !N ALLOCAT$ BY WOM5'S C\NCILS1 & NO ONE EV] TRAD$ >RO:EADS = SLABS ( MEAT4 ,ECONOMI/S SIMPLY IGNOR$ ?IS 9=MATION4.<#c.> ,/ANLEY ,JEVONS1 = EXAMPLE1 :O 9 #ahga WROTE :AT HAS COME TO BE CONSID]$ ! CLASSIC BOOK ON ! ORIG9S ( MONEY1 TOOK HIS EXAMPLES /RAI<T FROM ,SMI?1 ) ,9DIANS SWAPP+ V5ISON = ELK & BEAV] HIDES1 & MADE NO USE ( ACTUAL DESCRIPTIONS ( ,9DIAN LIFE ?AT MADE IT CLE> ?AT ,SMI? HAD SIMPLY MADE ?IS UP4 ,>\ND ?AT SAME TIME1 MISSION>IES1 ADV5TUR]S1 & COLONIAL ADM9I/RATORS W]E FANN+ \T ACROSS ! WORLD1 MANY BR++ COPIES ( ,SMI?'S BOOK ) !M1 EXPECT+ TO F9D ! L& ( B>T]4 ,NONE EV] DID4 ,!Y DISCOV]$ AN ALMO/ 5DLESS V>IETY ( ECONOMIC SY/EMS4 ,BUT TO ?IS DAY1 NO ONE HAS BE5 ABLE TO LOCATE A P>T ( ! WORLD :]E ! ORD9>Y MODE ( ECONOMIC TRANSACTION BETWE5 NEI<BORS TAKES ! =M ( 0,I'LL GIVE Y\ TW5TY *ICK5S = ?AT C[40 

,! DEF9ITIVE AN?ROPOLOGICAL WORK ON B>T]1 BY ,C>OL9E ,HUMPHREY1 ( ,CAMBRIDGE1 C\LD NOT BE MORE DEF9ITIVE 9 ITS CONCLUSIONS3 0,NO EXAMPLE ( A B>T] ECONOMY1 PURE & SIMPLE1 HAS EV] BE5 DESCRIB$1 LET ALONE ! EM]G5CE FROM IT ( MONEY2 ALL AVAILABLE E?NOGRAPHY SUGGE/S ?AT !RE NEV] HAS BE5 SU* A ?+40.<#c#a.> 

,N[1 ALL ?IS H>DLY MEANS ?AT B>T] DOES NOT EXI/--OR EV5 ?AT IT'S NEV] PRACTIC$ BY ! SORT ( PEOPLE ?AT ,SMI? W\LD REF] TO AS 0SAVAGES40 ,IT JU/ MEANS ?AT IT'S ALMO/ NEV] EMPLOY$1 AS ,SMI? IMAG9$1 BETWE5 FELL[ VILLAG]S4 ,ORD9>ILY1 IT TAKES PLACE BETWE5 /RANG]S1 EV5 5EMIES4 ,LET US BEG9 ) ! ,NAMBIKW>A ( ,BRAZIL4 ,!Y W\LD SEEM TO FIT ALL ! CRIT]IA3 !Y >E A SIMPLE SOCIETY )\T MU* 9 ! WAY ( DIVISION ( LABOR1 ORGANIZ$ 9TO SMALL B&S ?AT TRADITIONALLY NUMB]$ AT BE/ A HUNDR$ PEOPLE EA*4 ,OCCASIONALLY IF ONE B& SPOTS ! COOK+ FIRES ( ANO!R 9 !IR VIC9ITY1 !Y WILL S5D EMISS>IES TO NEGOTIATE A MEET+ = PURPOSES ( TRADE4 ,IF ! (F] IS ACCEPT$1 !Y WILL FIR/ HIDE !IR WOM5 & *ILDR5 9 ! =E/1 !N 9VITE ! M5 ( O!R B& TO VISIT CAMP4 ,EA* B& HAS A *IEF2 ONCE EV]YONE HAS BE5 ASSEMBL$1 EA* *IEF GIVES A =MAL SPEE* PRAIS+ ! O!R P>TY & BELITTL+ HIS [N2 EV]YONE PUTS ASIDE !IR WEAPONS TO S+ & DANCE TOGE!R--?\< ! DANCE IS ONE ?AT MIMICS MILIT>Y CONFRONTATION4 ,!N1 9DIVIDUALS FROM EA* SIDE APPROA* EA* O!R TO TRADE3 

,IF AN 9DIVIDUAL WANTS AN OBJECT HE EXTOLS IT BY SAY+ H[ F9E IT IS4 ,IF A MAN VALUES AN OBJECT & WANTS MU* 9 EX*ANGE = IT1 9/EAD ( SAY+ ?AT IT IS V]Y VALUABLE HE SAYS ?AT IT IS NO GOOD1 ?US %[+ HIS DESIRE TO KEEP IT4 0,?IS AX IS NO GOOD1 IT IS V]Y OLD1 IT IS V]Y DULL10 HE WILL SAY1 REF]R+ TO HIS AX :I* ! O!R WANTS4 

,?IS >GUM5T IS C>RI$ ON 9 AN ANGRY TONE ( VOICE UNTIL A SETTLEM5T IS REA*$4 ,:5 AGREEM5T HAS BE5 REA*$ EA* SNAT*ES ! OBJECT \T ( ! O!R'S H&4 ,IF A MAN HAS B>T]$ A NECKLACE1 9/EAD ( TAK+ IT (F & H&+ IT OV]1 ! O!R P]SON MU/ TAKE IT (F ) A %[ ( =CE4 ,DISPUTES1 (T5 LEAD+ TO FI<TS1 OCCUR :5 ONE P>TY IS A LITTLE PREMATURE & SNAT*ES ! OBJECT BE=E ! O!R HAS F9I%$ >GU+4.<#c#b.> 

,! :OLE BUS9ESS CONCLUDES ) A GREAT FEA/ AT :I* ! WOM5 REAPPE>1 BUT ?IS TOO CAN LEAD TO PROBLEMS1 S9CE AMID ! MUSIC & GOOD *E]1 !RE IS AMPLE OPPORTUNITY = S$UCTIONS4.<#c#c.> ,?IS SOMETIMES L$ TO JEAL\S QU>RELS4 ,OCCASIONALLY1 PEOPLE W\LD GET KILL$4 

,B>T]1 !N1 = ALL ! FE/IVE ELEM5TS1 WAS C>RI$ \T BETWE5 PEOPLE :O MI<T O!RWISE BE 5EMIES & HOV]$ AB\T AN 9* AWAY FROM \TRI<T W>F>E--&1 IF ! E?NOGRAPH] IS TO BE BELIEV$--IF ONE SIDE LAT] DECID$ !Y HAD BE5 TAK5 ADVANTAGE (1 IT C\LD V]Y EASILY LEAD TO ACTUAL W>S4 

,TO %IFT \R SPOTLI<T HALFWAY >\ND ! WORLD TO ,WE/]N ,>NHEM ,L& 9 ,AU/RALIA1 :]E ! ,GUNW+GU PEOPLE >E FAM\S = 5T]TA9+ NEI<BORS 9 RITUALS ( C]EMONIAL B>T] CALL$ ! DZAMALAG4 ,H]E ! ?REAT ( ACTUAL VIOL5CE SEEMS MU* MORE DI/ANT4 ,P>TLY1 ?IS IS BECAUSE ?+S >E MADE EASI] BY ! EXI/5CE ( A MOIETY SY/EM ?AT EMBRACES ! :OLE REGION3 NO ONE IS ALL[$ TO M>RY1 OR EV5 HAVE SEX )1 PEOPLE ( !IR [N MOIETY1 NO MATT] :]E !Y COME FROM1 BUT ANYONE FROM ! O!R IS TE*NICALLY A POT5TIAL MAT*4 ,!RE=E1 = A MAN1 EV5 9 DI/ANT COMMUNITIES1 HALF ! WOM5 >E /RICTLY =BIDD51 HALF ( !M FAIR GAME4 ,! REGION IS ALSO UNIT$ BY LOCAL SPECIALIZATION3 EA* PEOPLE HAS ITS [N TRADE PRODUCT TO BE B>T]$ ) ! O!RS4 

,:AT FOLL[S IS FROM A DESCRIPTION ( A DZAMALAG HELD 9 ! #a#i#dS1 AS OBS]V$ BY AN AN?ROPOLOGI/ NAM$ ,RONALD ,B]NDT4 

,ONCE AGA91 IT BEG9S AS /RANG]S1 AFT] SOME 9ITIAL NEGOTIATIONS1 >E 9VIT$ 9TO ! HO/S' MA9 CAMP4 ,! VISITORS 9 ?IS P>TICUL> EXAMPLE W]E FAM\S = !IR 0MU*-PRIZ$ S]RAT$ SPE>S0--!IR HO/S HAD ACCESS TO GOOD ,EUROPEAN CLO?4 ,! TRAD+ BEG9S :5 ! VISIT+ P>TY1 :I* CONSI/$ ( BO? M5 & WOM51 5T]S ! CAMP'S DANC+ GR\ND ( 0R+ PLACE10 & ?REE ( !M BEGAN TO 5T]TA9 !IR HO/S ) MUSIC4 ,TWO M5 />T S++1 A ?IRD ACCOMPANIES !M ON ! DIDJ]IDU4 ,BE=E LONG1 WOM5 FROM ! HO/S' SIDE COME & ATTACK ! MUSICIANS3 

,M5 & WOM5 RISE & BEG9 TO DANCE4 ,! DZAMALAG OP5S :5 TWO ,GUNW+GU WOM5 ( ! OPPOSITE MOIETY TO ! S++ M5 0GIVE DZAMALAG0 TO ! LATT]4 ,!Y PRES5T EA* MAN ) A PIECE ( CLO?1 & HIT OR T\* HIM1 PULL+ HIM D[N ON ! GR\ND1 CALL+ HIM A DZAMALAG HUSB&1 & JOK+ ) HIM 9 AN ]OTIC VE94 ,!N ANO!R WOMAN ( ! OPPOSITE MOIETY TO ! PIPE PLAY] GIVES HIM CLO?1 HITS & JOKES ) HIM4 

,?IS SETS 9 MOTION ! DZAMALAG EX*ANGE4 ,M5 FROM ! VISIT+ GR\P SIT QUIETLY :ILE WOM5 ( ! OPPOSITE MOIETY COME OV] & GIVE !M CLO?1 HIT !M1 & 9VITE !M TO COPULATE2 !Y TAKE ANY LIB]TY !Y *OOSE ) ! M51 AMID AMUSEM5T & APPLAUSE1 :ILE ! S++ & DANC+ CONT9UE4 ,WOM5 TRY TO UNDO ! M5'S LO9 COV]+S OR T\* !IR P5ISES1 & TO DRAG !M FROM ! 0R+ PLACE0 = COITUS4 ,! M5 GO ) !IR DZAMALAG P>TN]S1 ) A %[ ( RELUCTANCE1 TO COPULATE 9 ! BU%ES AWAY FROM ! FIRES :I* LI<T UP ! DANC]S4 ,!Y MAY GIVE ! WOM5 TOBACCO OR BEADS4 ,:5 ! WOM5 RETURN1 !Y GIVE P>T ( ?IS TOBACCO TO !IR [N HUSB&S1 :O HAVE 5C\RAG$ !M TO GO DZAMALAG4 ,! HUSB&S1 9 TURN1 USE ! TOBACCO TO PAY !IR [N FEMALE DZAMALAG P>TN]S 444.<#c#d.> 

,NEW S+]S & MUSICIANS APPE>1 >E AGA9 ASSAULT$ & DRAGG$ (F TO ! BU%ES2 M5 5C\RAGE !IR WIVES 0NOT TO BE %Y10 SO AS TO MA9TA9 ! ,GUNW+GU REPUTATION = HOSPITALITY2 EV5TUALLY ?OSE M5 ALSO TAKE ! 9ITIATIVE ) ! VISITORS' WIVES1 (F]+ CLO?1 HITT+ !M1 & LEAD+ !M (F 9TO ! BU%ES4 ,BEADS & TOBACCO CIRCULATE4 ,F9ALLY1 ONCE P>TICIPANTS HAVE ALL PAIR$ (F AT LEA/ ONCE1 & ! GUE/S >E SATISFI$ ) ! CLO? !Y HAVE ACQUIR$1 ! WOM5 /OP DANC+ & /& 9 TWO R[S & ! VISITORS L9E UP TO REPAY !M4 

,!N VISIT+ M5 ( ONE MOIETY DANCE T[>DS ! WOM5 ( ! OPPOSITE MOIETY1 9 ORD] TO 0GIVE !M DZAMALAG40 ,!Y HOLD %OVEL-NOS$ SPE>S POIS$1 PRET5D+ TO SPE> ! WOM51 BUT 9/EAD HIT !M ) ! FLAT ( ! BLADE4 0,WE WILL NOT SPE> Y\1 = WE HAVE ALREADY SPE>$ Y\ ) \R P5ISES40 ,!Y PRES5T ! SPE>S TO ! WOM54 ,!N VISIT+ M5 ( ! O!R MOIETY GO ?R\< ! SAME ACTIONS ) ! WOM5 ( !IR OPPOSITE MOIETY1 GIV+ !M SPE>S ) S]RAT$ PO9TS4 ,?IS T]M9ATES ! C]EMONY1 :I* IS FOLL[$ BY A L>GE DI/RIBUTION ( FOOD4.<#c#e.> 

,?IS IS A P>TICUL>LY DRAMATIC CASE1 BUT DRAMATIC CASES >E REVEAL+4 ,:AT ! ,GUNW+GU HO/S APPE> TO HAVE BE5 ABLE TO DO H]E1 [+ TO ! RELATIVELY AMICABLE RELATIONS BETWE5 NEI<BOR+ PEOPLES 9 ,WE/]N ,>NHEM ,L&1 IS TO TAKE ALL ! ELEM5TS 9 ,NAMBIKW>A B>T] 7! MUSIC & DANC+1 ! POT5TIAL HO/ILITY1 ! SEXUAL 9TRIGUE71 & TURN IT ALL 9TO A K9D ( FE/IVE GAME--ONE NOT1 P]HAPS1 )\T ITS DANG]S1 BUT 7AS ! E?NOGRAPH] EMPHASIZES7 CONSID]$ 5ORM\S FUN BY EV]YONE CONC]N$4 

,:AT ALL SU* CASES ( TRADE ?R\< B>T] HAVE 9 COMMON IS ?AT !Y >E MEET+S ) /RANG]S :O WILL1 LIKELY AS NOT1 NEV] MEET AGA91 & ) :OM ONE C]TA9LY WILL NOT 5T] 9TO ANY ONGO+ RELATIONS4 ,?IS IS :Y A DIRECT ONE-ON-ONE EX*ANGE IS APPROPRIATE3 EA* SIDE MAKES !IR TRADE & WALKS AWAY4 ,IT'S ALL MADE POSSIBLE BY LAY+ D[N AN 9ITIAL MANTLE ( SOCIABILITY1 9 ! =M ( %>$ PLEASURES1 MUSIC & DANCE--! USUAL BASE ( CONVIVIALITY ON :I* TRADE MU/ ALWAYS BE BUILT4 ,!N COMES ! ACTUAL TRAD+1 :]E BO? SIDES MAKE A GREAT DISPLAY ( ! LAT5T HO/ILITY ?AT NECESS>ILY EXI/S 9 ANY EX*ANGE ( MAT]IAL GOODS BETWE5 /RANG]S--:]E NEI!R P>TY HAS NO P>TICUL> REASON NOT TO TAKE ADVANTAGE ( ! O!R--BY PLAYFUL MOCK AGGRESSION1 ?\< 9 ! ,NAMBIKW>A CASE1 :]E ! MANTLE ( SOCIABILITY IS EXTREMELY ?91 MOCK AGGRESSION IS 9 CON/ANT DANG] ( SLIPP+ OV] 9TO ! REAL ?+4 ,! ,GUNW+GU1 ) !IR MORE RELAX$ ATTITUDE T[>D SEXUALITY1 HAVE QUITE +5I\SLY MANAG$ TO MAKE ! %>$ PLEASURES & AGGRESSION 9TO EXACTLY ! SAME ?+4 

,RECALL H]E ! LANGUAGE ( ! ECONOMICS TEXTBOOKS3 0,IMAG9E A SOCIETY )\T MONEY40 0,IMAG9E A B>T] ECONOMY40 ,ONE ?+ !SE EXAMPLES MAKE ABUNDANTLY CLE> IS JU/ H[ LIMIT$ ! IMAG9ATIVE P[]S ( MO/ ECONOMI/S TURN \T TO BE4.<#c#f.> 

,:Y8 ,! SIMPLE/ ANSW] W\LD BE3 = !RE TO EV5 BE A DISCIPL9E CALL$ 0ECONOMICS10 A DISCIPL9E ?AT CONC]NS ITSELF FIR/ & =EMO/ ) H[ 9DIVIDUALS SEEK ! MO/ ADVANTAGE\S >RANGEM5T = ! EX*ANGE ( %OES = POTATOES1 OR CLO? = SPE>S1 IT MU/ ASSUME ?AT ! EX*ANGE ( SU* GOODS NE$ HAVE NO?+ TO DO ) W>1 PASSION1 ADV5TURE1 MY/]Y1 SEX1 OR DEA?4 ,ECONOMICS ASSUMES A DIVISION BETWE5 DIFF]5T SPH]ES ( HUMAN BEHAVIOR ?AT1 AMONG PEOPLE LIKE ! ,GUNW9NGU & ! ,NAMBIKW>A1 SIMPLY DOES NOT EXI/4 ,!SE DIVISIONS 9 TURN >E MADE POSSIBLE BY V]Y SPECIFIC 9/ITUTIONAL >RANGEM5TS3 ! EXI/5CE ( LAWY]S1 PRISONS1 & POLICE1 TO 5SURE ?AT EV5 PEOPLE :O DON'T LIKE EA* O!R V]Y MU*1 :O HAVE NO 9T]E/ 9 DEVELOP+ ANY K9D ( ONGO+ RELATION%IP1 BUT >E SIMPLY 9T]E/$ 9 GETT+ !IR H&S ON AS MU* ( ! O!RS' POSSESSIONS AS POSSIBLE1 WILL NONE!LESS REFRA9 FROM ! MO/ OBVI\S EXP$I5T 7!FT74 ,?IS 9 TURN ALL[S US TO ASSUME ?AT LIFE IS NEATLY DIVID$ BETWE5 ! M>KETPLACE1 :]E WE DO \R %OPP+1 & ! 0SPH]E ( CONSUMPTION10 :]E WE CONC]N \RSELVES ) MUSIC1 FEA/S1 & S$UCTION4 ,9 O!R WORDS1 ! VISION ( ! WORLD ?AT =MS ! BASIS ( ! ECONOMICS TEXTBOOKS1 :I* ,ADAM ,SMI? PLAY$ SO L>GE A P>T 9 PROMULGAT+1 HAS BY N[ BECOME SO MU* A P>T ( \R COMMON S5SE ?AT WE F9D IT H>D TO IMAG9E ANY O!R POSSIBLE >RANGEM5T4 

,FROM !SE EXAMPLES1 IT BEG9S TO BE CLE> :Y !RE >E NO SOCIETIES BAS$ ON B>T]4 ,SU* A SOCIETY C\LD ONLY BE ONE 9 :I* EV]YBODY WAS AN 9* AWAY FROM EV]YBODY ELSE'S ?ROAT2 BUT NONE!LESS HOV]+ !RE1 POIS$ TO /RIKE BUT NEV] ACTUALLY /RIK+1 =EV]4 ,TRUE1 B>T] DOES SOMETIMES OCCUR BETWE5 PEOPLE :O DO NOT CONSID] EA* O!R /RANG]S1 BUT !Y'RE USUALLY PEOPLE :O MI<T AS WELL BE /RANG]S--?AT IS1 :O FEEL NO S5SE ( MUTUAL RESPONSIBILITY OR TRU/1 OR ! DESIRE TO DEVELOP ONGO+ RELATIONS4 ,! ,PUKHTUN ( ,NOR!RN ,PAKI/AN1 = 9/ANCE1 >E FAM\S = !IR OP5H&$ HOSPITALITY4 ,B>T] IS :AT Y\ DO ) ?OSE TO :OM Y\ >E NOT B\ND BY TIES ( HOSPITALITY 7OR K9%IP1 OR MU* ( ANY?+ ELSE73 

,A FAVORITE MODE ( EX*ANGE AMONG M5 IS B>T]1 OR ADAL-BADAL 7GIVE & TAKE74 ,M5 >E ALWAYS ON ! AL]T = ! POSSIBILITY ( B>T]+ ONE ( !IR POSSESSIONS = SOME?+ BETT]4 ,(T5 ! EX*ANGE IS LIKE = LIKE3 A RADIO = A RADIO1 SUNGLASSES = SUNGLASSES1 A WAT* = A WAT*4 ,H[EV]1 UNLIKE OBJECTS CAN ALSO BE EX*ANG$1 SU* AS1 9 ONE 9/ANCE1 A BICYCLE = TWO DONKEYS4 ,ADAL-BADAL IS ALWAYS PRACTIC$ ) NON-RELATIVES & AF=DS M5 A GREAT DEAL ( PLEASURE AS !Y ATTEMPT TO GET ! ADVANTAGE OV] !IR EX*ANGE P>TN]4 ,A GOOD EX*ANGE1 9 :I* A MAN FEELS HE HAS GOTT5 ! BETT] ( ! DEAL1 IS CAUSE = BRAGG+ & PRIDE4 ,IF ! EX*ANGE IS BAD1 ! RECIPI5T TRIES TO R5EGE ON ! DEAL OR1 FAIL+ ?AT1 TO PALM (F ! FAULTY OBJECT ON SOMEONE UNSUSPECT+4 ,! BE/ P>TN] 9 ADAL-BADAL IS SOMEONE :O IS DI/ANT SPATIALLY & WILL !RE=E HAVE LITTLE OPPORTUNITY TO COMPLA94.<#c#g.> 

,NEI!R >E SU* UNSCRUPUL\S MOTIVES LIMIT$ TO ,C5TRAL ,ASIA4 ,!Y SEEM 9H]5T TO ! V]Y NATURE ( B>T]--:I* W\LD EXPLA9 ! FACT ?AT 9 ! C5TURY OR TWO BE=E ,SMI?'S TIME1 ! ,5GLI% WORDS 0TRUCK & B>T]10 LIKE !IR EQUIVAL5TS 9 ,FR5*1 ,SPANI%1 ,G]MAN1 ,DUT*1 & ,PORTUGUESE1 LIT]ALLY MEANT 0TO TRICK1 BAMBOOZLE1 OR RIP (F40.<#c#h.> ,SWAPP+ ONE ?+ DIRECTLY = ANO!R :ILE TRY+ TO GET ! BE/ DEAL ONE CAN \T ( ! TRANSACTION IS1 ORD9>ILY1 H[ ONE DEALS ) PEOPLE ONE DOESN'T C>E AB\T & DOESN'T EXPECT TO SEE AGA94 ,:AT REASON IS !RE NOT TO TRY TO TAKE ADVANTAGE ( SU* A P]SON8 ,IF1 ON ! O!R H&1 ONE C>ES 5\< AB\T SOMEONE--A NEI<BOR1 A FRI5D--TO WI% TO DEAL ) H] FAIRLY & HONE/LY1 ONE WILL 9EVITABLY ALSO C>E AB\T H] 5\< TO TAKE H] 9DIVIDUAL NE$S1 DESIRES1 & SITUATION 9TO ACC\NT4 ,EV5 IF Y\ DO SWAP ONE ?+ = ANO!R1 Y\ >E LIKELY TO FRAME ! MATT] AS A GIFT4 

,TO ILLU/RATE :AT ,I MEAN BY ?IS1 LET'S RETURN TO ! ECONOMICS TEXTBOOKS & ! PROBLEM ( ! 0D\BLE CO9CID5CE ( WANTS40 ,:5 WE LEFT ,H5RY1 HE NE$$ A PAIR ( %OES1 BUT ALL HE HAD LY+ >\ND W]E SOME POTATOES4 ,JO%UA HAD AN EXTRA PAIR ( %OES1 BUT HE DIDN'T REALLY NE$ POTATOES4 ,S9CE MONEY HAS NOT YET BE5 9V5T$1 !Y HAVE A PROBLEM4 ,:AT >E !Y TO DO8 

,! FIR/ ?+ ?AT %\LD BE CLE> BY N[ IS ?AT WE'D REALLY HAVE TO KN[ A BIT MORE AB\T ,JO%UA & ,H5RY4 ,:O >E !Y8 ,>E !Y RELAT$8 ,IF SO1 H[8 ,!Y APPE> TO LIVE 9 A SMALL COMMUNITY4 ,ANY TWO PEOPLE :O HAVE BE5 LIV+ !IR LIVES 9 ! SAME SMALL COMMUNITY WILL HAVE SOME SORT ( COMPLICAT$ HI/ORY ) EA* O!R4 ,>E !Y FRI5DS1 RIVALS1 ALLIES1 LOV]S1 5EMIES1 OR SEV]AL ( !SE ?+S AT ONCE8 

,! AU?ORS ( ! ORIG9AL EXAMPLE SEEM TO ASSUME TWO NEI<BORS ( R\<LY EQUAL /ATUS1 NOT CLOSELY RELAT$1 BUT ON FRI5DLY T]MS--?AT IS1 AS CLOSE TO NEUTRAL EQUALITY AS ONE CAN GET4 ,EV5 SO1 ?IS DOESN'T SAY MU*4 ,= EXAMPLE1 IF ,H5RY WAS LIV+ 9 A ,S5ECA LON<\SE1 & NE$$ %OES1 ,JO%UA W\LD NOT EV5 5T] 9TO IT2 HE'D SIMPLY M5TION IT TO HIS WIFE1 :O'D BR+ UP ! MATT] ) ! O!R MATRONS1 FET* MAT]IALS FROM ! LON<\SE'S COLLECTIVE /OREH\SE1 & SEW HIM SOME4 ,ALT]NATELY1 TO F9D A SC5>IO FIT = AN IMAG9>Y ECONOMICS TEXTBOOK1 WE MI<T PLACE ,JO%UA & ,H5RY TOGE!R 9 A SMALL1 9TIMATE COMMUNITY LIKE A ,NAMBIKW>A OR ,GUNW+GU B&4 

,S,C,5,>,I,O #a 

,H5RY WALKS UP TO ,JO%UA & SAYS 0,NICE %OES60 

,JO%UA SAYS1 0,OH1 !Y'RE NOT MU*1 BUT S9CE Y\ SEEM TO LIKE !M1 BY ALL MEANS TAKE !M40 

,H5RY TAKES ! %OES4 

,H5RY'S POTATOES >E NOT AT ISSUE S9CE BO? P>TIES >E P]FECTLY WELL AW>E ?AT IF ,JO%UA W]E EV] %ORT ( POTATOES1 ,H5RY W\LD GIVE HIM SOME4 

,& ?AT'S AB\T IT4 ,( C\RSE IT'S NOT CLE>1 9 ?IS CASE1 H[ LONG ,H5RY WILL ACTUALLY GET TO KEEP ! %OES4 ,IT PROBABLY DEP5DS ON H[ NICE !Y >E4 ,IF !Y W]E JU/ ORD9>Y %OES1 ?IS MI<T BE ! 5D ( ! MATT]4 ,IF !Y >E 9 ANY WAY UNIQUE OR BEAUTIFUL1 !Y MI<T 5D UP BE+ PASS$ >\ND4 ,!RE'S A FAM\S /ORY ?AT ,JOHN & ,LORNA ,M>%ALL1 :O C>RI$ \T A /UDY ( ,KALAH>I ,BU%M5 9 ! '#fS1 ONCE GAVE A KNIFE TO ONE ( !IR FAVORITE 9=MANTS4 ,!Y LEFT & CAME BACK A YE> LAT]1 ONLY TO DISCOV] ?AT PRETTY MU* EV]YONE 9 ! B& HAD BE5 9 POSSESSION ( ! KNIFE AT SOME PO9T 9 BETWE54 ,ON ! O!R H&1 SEV]AL ,>AB FRI5DS CONFIRM TO ME ?AT 9 LESS /RICTLY EGALIT>IAN CONTEXTS1 !RE IS AN EXP$I5T4 ,IF A FRI5D PRAISES A BRACELET OR BAG1 Y\ >E NORMALLY EXPECT$ TO IMM$IATELY SAY 0TAKE IT0--BUT IF Y\ >E REALLY DET]M9$ TO HOLD ON TO IT1 Y\ CAN ALWAYS SAY1 0YES1 ISN'T IT BEAUTIFUL8 ,IT WAS A GIFT40 

,BUT CLE>LY1 ! AU?ORS ( ! TEXTBOOK HAVE A SLI<TLY MORE IMP]SONAL TRANSACTION 9 M9D4 ,! AU?ORS SEEM TO IMAG9E ! TWO M5 AS ! HEADS ( PATRI>*AL H\SEHOLDS1 ON GOOD T]MS ) EA* O!R1 BUT :O KEEP !IR [N SUPPLIES4 ,P]HAPS !Y LIVE 9 ONE ( ?OSE ,SCOTTI% VILLAGES ) ! BUT*] & ! BAK] 9 ,ADAM ,SMI?'S EXAMPLES1 OR A COLONIAL SETTLEM5T 9 ,NEW ,5GL&4 ,EXCEPT = SOME REASON !Y'VE NEV] HE>D ( MONEY4 ,IT'S A PECULI> FANTASY1 BUT LET'S SEE :AT WE CAN DO3 

,S,C,5,>,I,O #b 

,H5RY WALKS UP TO ,JO%UA & SAYS1 0,NICE %OES60 

,OR1 P]HAPS--LET'S MAKE ?IS A BIT MORE REALI/IC--,H5RY'S WIFE IS *ATT+ ) ,JO%UA'S & /RATEGICALLY LETS SLIP ?AT ! /ATE ( ,H5RY'S %OES IS GETT+ SO BAD HE'S COMPLA9+ AB\T CORNS4 

,! MESSAGE IS CONVEY$1 & ,JO%UA COMES BY ! NEXT DAY TO (F] HIS EXTRA PAIR TO ,H5RY AS A PRES5T1 9SI/+ ?AT ?IS IS JU/ A NEI<BORLY GE/URE4 ,HE W\LD C]TA9LY NEV] WANT ANY?+ 9 RETURN4 

,IT DOESN'T MATT] :E!R ,JO%UA IS S9C]E 9 SAY+ ?IS4 ,BY DO+ SO1 ,JO%UA !REBY REGI/]S A CR$IT4 ,H5RY [ES HIM ONE4 

,H[ MI<T ,H5RY PAY ,JO%UA BACK8 ,!RE >E 5DLESS POSSIBILITIES4 ,P]HAPS ,JO%UA REALLY DOES WANT POTATOES4 ,H5RY WAITS A DISCRETE 9T]VAL & DROPS !M (F1 9SI/+ ?AT ?IS TOO IS JU/ A GIFT4 ,OR ,JO%UA DOESN'T NE$ POTATOES N[ BUT ,H5RY WAITS UNTIL HE DOES4 ,OR MAYBE A YE> LAT]1 ,JO%UA IS PLANN+ A BANQUET1 SO HE COMES /ROLL+ BY ,H5RY'S B>NY>D & SAYS 0,NICE PIG 4440 

,9 ANY ( !SE SC5>IOS1 ! PROBLEM ( 0D\BLE CO9CID5CE ( WANTS10 SO 5DLESSLY 9VOK$ 9 ! ECONOMICS TEXTBOOKS1 SIMPLY DISAPPE>S4 ,H5RY MI<T NOT HAVE SOME?+ ,JO%UA WANTS RI<T N[4 ,BUT IF ! TWO >E NEI<BORS1 IT'S OBVI\SLY ONLY A MATT] ( TIME BE=E HE WILL4.<#c#i.> 

,?IS 9 TURN MEANS ?AT ! NE$ TO /OCKPILE COMMONLY ACCEPTABLE ITEMS 9 ! WAY ?AT ,SMI? SUGGE/$ DISAPPE>S AS WELL4 ,) IT GOES ! NE$ TO DEVELOP CURR5CY4 ,AS ) SO MANY ACTUAL SMALL COMMUNITIES1 EV]YONE SIMPLY KEEPS TRACK ( :O [ES :AT TO :OM4 

,!RE IS JU/ ONE MAJOR CONCEPTUAL PROBLEM H]E--ONE ! ATT5TIVE READ] MI<T HAVE NOTIC$4 ,H5RY 0[ES ,JO%UA ONE40 ,ONE :AT8 ,H[ DO Y\ QUANTIFY A FAVOR8 ,ON :AT BASIS DO Y\ SAY ?AT ?IS MANY POTATOES1 OR ?IS BIG A PIG1 SEEMS MORE OR LESS EQUIVAL5T TO A PAIR ( %OES8 ,BECAUSE EV5 IF !SE ?+S REMA9 R\<-&-READY APPROXIMATIONS1 !RE MU/ BE SOME WAY TO E/ABLI% ?AT ,X IS R\<LY EQUIVAL5T TO ,Y1 OR SLI<TLY WORSE OR SLI<TLY BETT]4 ,DOESN'T ?IS IMPLY ?AT SOME?+ LIKE MONEY1 AT LEA/ 9 ! S5SE ( A UNIT ( ACC\NTS BY :I* ONE CAN COMP>E ! VALUE ( DIFF]5T OBJECTS1 ALREADY HAS TO EXI/8 

,9 MO/ GIFT ECONOMIES1 !RE ACTUALLY IS A R\<-&-READY WAY TO SOLVE ! PROBLEM4 ,ONE E/ABLI%ES A S]IES ( RANK$ CATEGORIES ( TYPES ( ?+4 ,PIGS & %OES MAY BE CONSID]$ OBJECTS ( R\<LY EQUIVAL5T /ATUS1 ONE CAN GIVE ONE 9 RETURN = ! O!R2 CORAL NECKLACES >E QUITE ANO!R MATT]1 ONE W\LD HAVE TO GIVE BACK ANO!R NECKLACE1 OR AT LEA/ ANO!R PIECE ( JEWELRY--AN?ROPOLOGI/S >E US$ TO REF]R+ TO !SE AS CREAT+ DIFF]5T 0SPH]ES ( EX*ANGE40.<#d.> ,?IS DOES SIMPLIFY ?+S SOME:AT4 ,:5 CROSS-CULTURAL B>T] BECOMES A REGUL> & UNEXCEPTIONAL ?+1 IT T5DS TO OP]ATE ACCORD+ TO SIMIL> PR9CIPLES3 !RE >E ONLY C]TA9 ?+S TRAD$ = C]TA9 O!RS 7CLO? = SPE>S1 = EXAMPLE71 :I* MAKES IT EASY TO WORK \T TRADITIONAL EQUIVAL5CES4 ,H[EV]1 ?IS DOESN'T HELP US AT ALL ) ! PROBLEM ( ! ORIG9 ( MONEY4 ,ACTUALLY1 IT MAKES IT 9F9ITELY WORSE4 ,:Y /OCKPILE SALT OR GOLD OR FI% IF !Y CAN ONLY BE EX*ANG$ = SOME ?+S & NOT O!RS8 

,9 FACT1 !RE IS GOOD REASON TO BELIEVE ?AT B>T] IS NOT A P>TICUL>LY ANCI5T PH5OM5ON AT ALL1 BUT HAS ONLY REALLY BECOME WIDESPREAD 9 MOD]N TIMES4 ,C]TA9LY 9 MO/ ( ! CASES WE KN[ AB\T1 IT TAKES PLACE BETWE5 PEOPLE :O >E FAMILI> ) ! USE ( MONEY1 BUT = ONE REASON OR ANO!R1 DON'T HAVE A LOT ( IT >\ND4 ,ELABORATE B>T] SY/EMS (T5 CROP UP 9 ! WAKE ( ! COLLAPSE ( NATIONAL ECONOMIES3 MO/ REC5TLY 9 ,RUSSIA 9 ! '#iS1 & 9 ,>G5T9A >\ND #b#b1 :5 RUBLES 9 ! FIR/ CASE1 & DOLL>S 9 ! SECOND1 EFFECTIVELY DISAPPE>$4.<#d#a.> ,OCCASIONALLY ONE CAN EV5 F9D SOME K9D ( CURR5CY BEG9N+ TO DEVELOP3 = 9/ANCE1 9 ,P,[ CAMPS & MANY PRISONS1 9MATES HAVE 9DE$ BE5 KN[N TO USE CIG>ETTES AS A K9D ( CURR5CY1 MU* TO ! DELI<T & EXCITEM5T ( PR(ESSIONAL ECONOMI/S4.<#d#b.> ,BUT H]E TOO WE >E TALK+ AB\T PEOPLE :O GREW UP US+ MONEY & N[ HAVE TO MAKE DO )\T IT--EXACTLY ! SITUATION 0IMAG9$0 BY ! ECONOMICS TEXTBOOKS ) :I* ,I BEGAN4 

,! MORE FREQU5T SOLUTION IS TO ADOPT SOME SORT ( CR$IT SY/EM4 ,:5 MU* ( ,EUROPE 0REV]T$ TO B>T]0 AFT] ! COLLAPSE ( ! ,ROMAN ,EMPIRE1 & !N AGA9 AFT] ! ,C>OL+IAN ,EMPIRE LIKEWISE FELL AP>T1 ?IS SEEMS TO BE :AT HAPP5$4 ,PEOPLE CONT9U$ KEEP+ ACC\NTS 9 ! OLD IMP]IAL CURR5CY1 EV5 IF !Y W]E NO LONG] US+ CO9S4.<#d#c.> ,SIMIL>LY1 ! ,PUKHTUN M5 :O LIKE TO SWAP BICYCLES = DONKEYS >E H>DLY UNFAMILI> ) ! USE ( MONEY4 ,MONEY HAS EXI/$ 9 ?AT P>T ( ! WORLD = ?\S&S ( YE>S4 ,!Y JU/ PREF] DIRECT EX*ANGE BETWE5 EQUALS--9 ?IS CASE1 BECAUSE !Y CONSID] IT MORE MANLY4.<#d#d.> 

,! MO/ REM>KABLE ?+ IS ?AT EV5 9 ,ADAM ,SMI?'S EXAMPLES ( FI% & NAILS & TOBACCO BE+ US$ AS MONEY1 ! SAME SORT ( ?+ WAS HAPP5+4 ,9 ! YE>S FOLL[+ ! APPE>ANCE ( ,! ,WEAL? ( ,NATIONS1 S*OL>S *ECK$ 9TO MO/ ( ?OSE EXAMPLES & DISCOV]$ ?AT 9 JU/ AB\T EV]Y CASE1 ! PEOPLE 9VOLV$ W]E QUITE FAMILI> ) ! USE ( MONEY1 & 9 FACT1 W]E US+ MONEY--AS A UNIT ( ACC\NT4.<#d#e.> ,TAKE ! EXAMPLE ( DRI$ COD1 SUPPOS$LY US$ AS MONEY 9 ,NEWF\NDL&4 ,AS ! ,BRITI% DIPLOMAT ,A4 ,MIT*ELL-,9NES PO9T$ \T ALMO/ A C5TURY AGO1 :AT ,SMI? DESCRIBES WAS REALLY AN ILLUSION1 CREAT$ BY A SIMPLE CR$IT >RANGEM5T3 

,9 ! E>LY DAYS ( ! ,NEWF\NDL& FI%+ 9DU/RY1 !RE WAS NO P]MAN5T ,EUROPEAN POPULATION2 ! FI%]S W5T !RE = ! FI%+ SEASON ONLY1 & ?OSE :O W]E NOT FI%]S W]E TRAD]S :O B\<T ! DRI$ FI% & SOLD TO ! FI%]S !IR DAILY SUPPLIES4 ,! LATT] SOLD !IR CAT* TO ! TRAD]S AT ! M>KET PRICE 9 P\NDS1 %ILL+S & P5CE1 & OBTA9$ 9 RETURN A CR$IT ON !IR BOOKS1 ) :I* !Y PAID = !IR SUPPLIES4 ,BALANCES DUE BY ! TRAD]S W]E PAID = BY DRAFTS ON ,5GL& OR ,FRANCE4.<#d#f.> 

,IT WAS QUITE ! SAME 9 ! ,SCOTTI% VILLAGE4 ,IT'S NOT AS IF ANYONE ACTUALLY WALK$ 9TO ! LOCAL PUB1 PLUNK$ D[N A RO(+ NAIL1 & ASK$ = A P9T ( BE]4 ,EMPLOY]S 9 ,SMI?'S DAY (T5 LACK$ CO9 TO PAY !IR WORK]S2 WAGES C\LD BE DELAY$ BY A YE> OR MORE2 9 ! MEANTIME1 IT WAS CONSID]$ ACCEPTABLE = EMPLOYES TO C>RY (F EI!R SOME ( !IR [N PRODUCTS OR LEFTOV] WORK MAT]IALS1 LUMB]1 FABRIC1 CORD1 & SO ON4 ,! NAILS W]E DE FACTO 9T]E/ ON :AT !IR EMPLOY]S [$ !M4 ,SO !Y W5T TO ! PUB1 RAN UP A TAB1 & :5 OCCASION P]MITT$1 BR\<T 9 A BAG ( NAILS TO *>GE (F AGA9/ ! DEBT4 ,! LAW MAK+ TOBACCO LEGAL T5D] 9 ,VIRG9IA SEEMS TO HAVE BE5 AN ATTEMPT BY PLANT]S TO OBLIGE LOCAL M]*ANTS TO ACCEPT !IR PRODUCTS AS A CR$IT >\ND H>VE/ TIME4 ,9 EFFECT1 ! LAW =C$ ALL M]*ANTS 9 ,VIRG9IA TO BECOME MIDDLEM5 9 ! TOBACCO BUS9ESS1 :E!R !Y LIK$ IT OR NOT2 JU/ AS ALL ,WE/ ,9DIAN M]*ANTS W]E OBLIG$ TO BECOME SUG> DEAL]S1 S9CE ?AT'S :AT ALL !IR WEAL?I] CU/OM]S BR\<T 9 TO WRITE (F AGA9/ !IR DEBT4 

,! PRIM>Y EXAMPLES1 !N1 W]E ONES 9 :I* PEOPLE W]E IMPROVIS+ CR$IT SY/EMS1 BECAUSE ACTUAL MONEY--GOLD & SILV] CO9AGE--WAS 9 %ORT SUPPLY4 ,BUT ! MO/ %OCK+ BL[ TO ! CONV5TIONAL V]SION ( ECONOMIC HI/ORY CAME ) ! TRANSLATION1 FIR/ ( ,EGYPTIAN HI]OGLYPHICS1 & !N ( ,MESOPOTAMIAN CUNEI=M1 :I* PU%$ BACK S*OL>S' KN[L$GE ( WRITT5 HI/ORY ALMO/ ?REE MILL5NIA1 FROM ! TIME ( ,HOM] 7CIRCA #h BC71 :]E IT HAD HOV]$ 9 ,SMI?'S TIME1 TO R\<LY #ce BC4 ,:AT !SE TEXTS REVEAL$ WAS ?AT CR$IT SY/EMS ( EXACTLY ?IS SORT ACTUALLY PREC$$ ! 9V5TION ( CO9AGE BY ?\S&S ( YE>S4 

,! ,MESOPOTAMIAN SY/EM IS ! BE/-DOCUM5T$1 MORE SO ?AN ?AT ( ,PH>AONIC ,EGYPT 7:I* APPE>S SIMIL>71 ,%ANG ,*9A 7AB\T :I* WE KN[ LITTLE71 OR ! ,9DUS ,VALLEY CIVILIZATION 7AB\T :I* WE KN[ NO?+ AT ALL74 ,AS IT HAPP5S1 WE KN[ A GREAT DEAL AB\T ,MESOPOTAMIA1 S9CE ! VA/ MAJORITY ( CUNEI=M DOCUM5TS W]E F9ANCIAL 9 NATURE4 

,! ,SUM]IAN ECONOMY WAS DOM9AT$ BY VA/ TEMPLE & PALACE COMPLEXES4 ,!SE W]E (T5 /AFF$ BY ?\S&S3 PRIE/S & (FICIALS1 CRAFTSPEOPLE :O WORK$ 9 !IR 9DU/RIAL WORK%OPS1 F>M]S & %EPH]DS :O WORK$ !IR CONSID]ABLE E/ATES4 ,EV5 ?\< ANCI5T ,SUM] WAS USUALLY DIVID$ 9TO A L>GE NUMB] ( 9DEP5D5T CITY-/ATES1 BY ! TIME ! CURTA9 GOES UP ON ,MESOPOTAMIAN CIVILIZATION >\ND #c#e1 TEMPLE ADM9I/RATORS ALREADY APPE> TO HAVE DEVELOP$ A S+LE1 UNI=M SY/EM ( ACC\NTANCY--ONE ?AT IS 9 SOME WAYS /ILL ) US1 ACTUALLY1 BECAUSE IT'S TO ! ,SUM]IANS ?AT WE [E SU* ?+S AS ! DOZ5 OR ! #b#d-H\R DAY4.<#d#g.> ,! BASIC MONET>Y UNIT WAS ! SILV] %EKEL4 ,ONE %EKEL'S WEI<T 9 SILV] WAS E/ABLI%$ AS ! EQUIVAL5T ( ONE GUR1 OR BU%EL ( B>LEY4 ,A %EKEL WAS SUBDIVID$ 9TO #f M9AS1 CORRESPOND+ TO ONE PORTION ( B>LEY--ON ! PR9CIPLE ?AT !RE W]E #c DAYS 9 A MON?1 & ,TEMPLE WORK]S RECEIV$ TWO RATIONS ( B>LEY EV]Y DAY4 ,IT'S EASY TO SEE ?AT 0MONEY0 9 ?IS S5SE IS 9 NO WAY ! PRODUCT ( COMM]CIAL TRANSACTIONS4 ,IT WAS ACTUALLY CREAT$ BY BUREAUCRATS 9 ORD] TO KEEP TRACK ( RES\RCES & MOVE ?+S BACK & =? BETWE5 DEP>TM5TS4 

,TEMPLE BUREAUCRATS US$ ! SY/EM TO CALCULATE DEBTS 7R5TS1 FEES1 LOANS 4447 9 SILV]4 ,SILV] WAS1 EFFECTIVELY1 MONEY4 ,& IT DID 9DE$ CIRCULATE 9 ! =M ( UNWORK$ *UNKS1 0RUDE B>S0 AS ,SMI? HAD PUT IT4.<#d#h.> ,9 ?IS HE WAS RI<T4 ,BUT IT WAS ALMO/ ! ONLY P>T ( HIS ACC\NT ?AT WAS RI<T4 ,ONE REASON WAS ?AT SILV] DID NOT CIRCULATE V]Y MU*4 ,MO/ ( IT JU/ SAT >\ND 9 ,TEMPLE & ,PALACE TREASURIES1 SOME ( :I* REMA9$1 C>EFULLY GU>D$1 9 ! SAME PLACE = LIT]ALLY ?\S&S ( YE>S4 ,IT W\LD HAVE BE5 EASY 5\< TO /&>DIZE ! +OTS1 /AMP !M1 CREATE SOME AU?ORITATIVE SY/EM TO GU>ANTEE !IR PURITY4 ,! TE*NOLOGY EXI/$4 ,YET NO ONE SAW ANY P>TICUL> NE$ TO DO SO4 ,ONE REASON WAS ?AT :ILE DEBTS W]E CALCULAT$ 9 SILV]1 !Y DID NOT HAVE TO BE PAID 9 SILV]--9 FACT1 !Y C\LD BE PAID 9 MORE OR LESS ANY?+ ONE HAD >\ND4 ,PEASANTS :O [$ MONEY TO ! ,TEMPLE OR ,PALACE1 OR TO SOME ,TEMPLE OR ,PALACE (FICIAL1 SEEM TO HAVE SETTL$ !IR DEBTS MO/LY 9 B>LEY1 :I* IS :Y FIX+ ! RATIO ( SILV] TO B>LEY WAS SO IMPORTANT4 ,BUT IT WAS P]FECTLY ACCEPTABLE TO %[ UP ) GOATS1 OR FURNITURE1 OR LAPIS LAZULI4 ,TEMPLES & ,PALACES W]E HUGE 9DU/RIAL OP]ATIONS--!Y C\LD F9D A USE = ALMO/ ANY?+4.<#d#i.> 

,9 ! M>KETPLACES ?AT CROPP$ UP 9 ,MESOPOTAMIAN CITIES1 PRICES W]E ALSO CALCULAT$ 9 SILV]1 & ! PRICES ( COMMODITIES ?AT W]5'T 5TIRELY CONTROLL$ BY ! ,TEMPLES & ,PALACES W\LD T5D TO FLUCTUATE ACCORD+ TO SUPPLY & DEM&4 ,BUT EV5 H]E1 SU* EVID5CE AS WE HAVE SUGGE/S ?AT MO/ TRANSACTIONS W]E BAS$ ON CR$IT4 ,M]*ANTS 7:O SOMETIMES WORK$ = ! ,TEMPLES1 SOMETIMES OP]AT$ 9DEP5D5TLY7 W]E AMONG ! FEW PEOPLE :O DID1 (T51 ACTUALLY USE SILV] 9 TRANSACTIONS2 BUT EV5 !Y MO/LY DID MU* ( !IR DEAL+S ON CR$IT1 & ORD9>Y PEOPLE BUY+ BE] FROM 0ALE WOM510 OR LOCAL 9NKEEP]S1 ONCE AGA91 DID SO BY RUNN+ UP A TAB1 TO BE SETTL$ AT H>VE/ TIME 9 B>LEY OR ANY?+ !Y MI<T HAVE HAD AT H&4.<#e.> 

,AT ?IS PO9T1 JU/ AB\T EV]Y ASPECT ( ! CONV5TIONAL /ORY ( ! ORIG9S ( MONEY LAY 9 RUBBLE4 ,R>ELY HAS AN HI/ORICAL !ORY BE5 SO ABSOLUTELY & SY/EMATICALLY REFUT$4 ,BY ! E>LY DECADES ( ! TW5TIE? C5TURY1 ALL ! PIECES W]E 9 PLACE TO COMPLETELY REWRITE ! HI/ORY ( MONEY4 ,! GR\NDWORK WAS LAID BY ,MIT*ELL-,9NES--! SAME ONE ,I'VE ALREADY CIT$ ON ! MATT] ( ! COD--9 TWO ESSAYS ?AT APPE>$ 9 ,NEW ,YORK'S ,BANK+ ,LAW ,J\RNAL 9 #aiac & #a#i#a#d4 ,9 !SE1 ,MIT*ELL-,9NES MATT]-(-FACTLY LAID \T ! FALSE ASSUMPTIONS ON :I* EXI/+ ECONOMIC HI/ORY WAS BAS$ & SUGGE/$ ?AT :AT WAS REALLY NE$$ WAS A HI/ORY ( DEBT3 

,ONE ( ! POPUL> FALLACIES 9 CONNECTION ) COMM]CE IS ?AT 9 MOD]N DAYS A MONEY-SAV+ DEVICE HAS BE5 9TRODUC$ CALL$ CR$IT & ?AT1 BE=E ?IS DEVICE WAS KN[N1 ALL1 PUR*ASES W]E PAID = 9 CA%1 9 O!R WORDS 9 CO9S4 ,A C>EFUL 9VE/IGATION %[S ?AT ! PRECISE REV]SE IS TRUE4 ,9 OLD5 DAYS CO9S PLAY$ A F> SMALL] P>T 9 COMM]CE ?AN !Y DO TO-DAY4 ,9DE$ SO SMALL WAS ! QUANTITY ( CO9S1 ?AT !Y DID NOT EV5 SUFFICE = ! NE$S ( ! .<,M$IEVAL ,5GLI%.> ,ROYAL H\SEHOLD & E/ATES :I* REGUL>LY US$ TOK5S ( V>I\S K9DS = ! PURPOSE ( MAK+ SMALL PAYM5TS4 ,SO UNIMPORTANT 9DE$ WAS ! CO9AGE ?AT SOMETIMES ,K+S DID NOT HESITATE TO CALL IT ALL 9 = RE-M9T+ & RE-ISSUE & /ILL COMM]CE W5T ON JU/ ! SAME4.<#e#a.> 

,9 FACT1 \R /&>D ACC\NT ( MONET>Y HI/ORY IS PRECISELY BACKW>DS4 ,WE DID NOT BEG9 ) B>T]1 DISCOV] MONEY1 & !N EV5TUALLY DEVELOP CR$IT SY/EMS4 ,IT HAPP5$ PRECISELY ! O!R WAY >\ND4 ,:AT WE N[ CALL VIRTUAL MONEY CAME FIR/4 ,CO9S CAME MU* LAT]1 & !IR USE SPREAD ONLY UNEV5LY1 NEV] COMPLETELY REPLAC+ CR$IT SY/EMS4 ,B>T]1 9 TURN1 APPE>S TO BE L>GELY A K9D ( ACCID5TAL BYPRODUCT ( ! USE ( CO9AGE OR PAP] MONEY3 HI/ORICALLY1 IT HAS MA9LY BE5 :AT PEOPLE :O >E US$ TO CA% TRANSACTIONS DO :5 = ONE REASON OR ANO!R !Y HAVE NO ACCESS TO CURR5CY4 

,! CURI\S ?+ IS ?AT IT NEV] HAPP5$4 ,?IS NEW HI/ORY WAS NEV] WRITT54 ,IT'S NOT ?AT ANY ECONOMI/ HAS EV] REFUT$ ,MIT*ELL-,9NES4 ,!Y JU/ IGNOR$ HIM4 ,TEXTBOOKS DID NOT *ANGE !IR /ORY--EV5 IF ALL ! EVID5CE MADE CLE> ?AT ! /ORY WAS SIMPLY WRONG4 ,PEOPLE /ILL WRITE HI/ORIES ( MONEY ?AT >E ACTUALLY HI/ORIES ( CO9AGE1 ON ! ASSUMPTION ?AT 9 ! PA/1 !SE W]E NECESS>ILY ! SAME ?+2 P]IODS :5 CO9AGE L>GELY VANI%$ >E /ILL DESCRIB$ AS TIMES :5 ! ECONOMY 0REV]T$ TO B>T]10 AS IF ! MEAN+ ( ?IS PHRASE IS SELF-EVID5T1 EV5 ?\< NO ONE ACTUALLY KN[S :AT IT MEANS4 ,AS A RESULT WE HAVE NEXT-TO-NO IDEA H[1 SAY1 ! 9HABITANT ( A ,DUT* T[N 9 #ie AD ACTUALLY W5T AB\T ACQUIR+ *EESE OR SPOONS OR HIR+ MUSICIANS TO PLAY AT HIS DAU<T]'S W$D+--LET ALONE H[ ANY ( ?IS WAS LIKELY TO BE >RANG$ 9 ,PEMBA OR ,SAM>K&4.<#e#b.> 

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