Money security – Finance

A monetary trust cannot arise from an act of authority alone. Money must be backed by a referrer that goes beyond what it warrants. Therefore, there should be an excess of the quality of trust over the quantity of money. Nowadays, the trust attribute is provided by central banks, i.e. issuing institutions.

But it wasn’t always like that. It is generally accepted that the national currency was invented by a Lydian king in the 7th century BC, as the latter would issue coins of the same shape and weight. And in Mycenae in 75 BC, the Greeks indicated the weight of metal ingots used for trade in a fist.

The monopoly of mining and minting, corresponding to the sovereign right to coin, was the first expression of membership and monetary trust. Later, the currency gradually acquired a primitive legal tender, primarily printed on coins, i.e. the authorities undertook to accept this currency in order to satisfy the demands of creditors. separated geographical and temporal space. The social legitimacy of money derives from this sovereign right and legal tender.

This development brings us back to several historical anecdotes, including the existence of grooves on coins. In the 17th century, coins made of precious metals were often cut into ellipsoidal shapes to yield a few grams, when counterfeiting was punishable by quartering. Isaac Newton (1642 -1727), a minter in England in 1696, added flutes or grooves to the edges of coins. If the coin did not have more grooves, it was because it had been ground: it was no longer considered valid money. In his 1976 essay “For the True Competition of Currencies,” Friedrich Hayek notes that Marco Polo stated that Chinese law in the 13th century condemned the rejection of imperial paper currency to death. In France, refusing appointments as a means of payment is punishable by twenty years in prison.

Gradually, currencies with intrinsic value (gold, silver, etc.) characterized as money-commodities were replaced by expressions and expressions of value. In the case of fiduciary currency (i.e. based on trust from the Latin word fiducia), or coins (also called coin money) and bills with a face value greater than their intrinsic value, a guarantor is an intangible state of trust. And today, money has become the collective unconscious that gives it credibility.

But it wasn’t always like that. It is generally accepted that the national currency was invented by a Lydian king in the 7th century BC, as the latter would issue coins of the same shape and weight. And in Mycenae in 75 BC, the Greeks indicated the weight of metal ingots used for trade in a fist. The monopoly of mining and minting, corresponding to the sovereign right to coin, was the first expression of membership and monetary trust. Later, the currency gradually acquired a primitive legal tender, primarily printed on coins, i.e. the authorities undertook to accept this currency in order to satisfy the demands of creditors. separated geographical and temporal space. The social legitimacy of money derives from this sovereign right and legal tender. This development brings us back to several historical anecdotes, including the existence of grooves on coins. In the 17th century, coins made of precious metals were often cut into ellipsoidal shapes to yield a few grams, when counterfeiting was punishable by quartering. Isaac Newton (1642 -1727), a minter in England in 1696, added flutes or grooves to the edges of coins. If the coin did not have more grooves, it was because it had been ground: it was no longer considered valid money. In his 1976 essay “For the True Competition of Currencies,” Friedrich Hayek notes that Marco Polo stated that Chinese law in the 13th century condemned the rejection of imperial paper currency to death. In France, the refusal of designations as a means of payment was punishable by twenty years in prison. Gradually, currencies with intrinsic value (gold, silver, etc.) characterized as commodity money were replaced by expressions and expressions. representation of a value. In the case of fiduciary currency (i.e. based on trust from the Latin word fiducia), or coins (also called coin money) and bills with a face value greater than their intrinsic value, a guarantor is an intangible state of trust. And today, money has become the collective unconscious that gives it credibility.

Leave a Reply

Your email address will not be published. Required fields are marked *