Spotlight | Historical Characteristics of Money

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By Alan Myers

“Money is worth what it will help you to produce or buy and no more.” Henry Ford, My Life and Work.

Over time, the use of generally accepted items of barter (Money) made it possible for people to easily complete indirect transaction. From this process, useable forms of Money became defined by specific characteristics that include the following:

• Transportable – If you can’t lug it you can’t trade it;
• Dividable – The more pieces you have the more you have to trade;
• Non perishable for the distance – Rotten doesn’t improve the trade;
• Wanted – If it isn’t wanted no one will trade for it;
• Scarce in supply- If everyone has one no one will trade for it;
• Interchangeable – One nickel or dime is as good as another;
• Unit of Account- Goods and services are priced in units of the item of barter;
• Store of Value – The purchasing power of the item of barter is stable and lasting;
• Not consumed – The item need not be consumed to provide the holder with value;
• Legal tender status – Recognized by law as the accepted form of

Successful traders, or mobile business entrepreneurs, became very familiar with all te characteristics that would eventually determine what items of barter would produce the best results as they engaged in their actual day-to-day trading activities.

The process that created and developed items of barter into Money was long, slow and driven by human interactions that had nothing to do with banks or national governments.

The Take Away – The more of the above listed characteristics an item possesses, the more likely that item will last and be a successful form of Money. A successful form of Money is defined by its characteristics and its acceptance in an indirect transaction, and not by what it actually is ow what is its perceived value.

Editor’s Note: The national monetary system is the most powerful system in our country because everything in our country is connected to it.  Unfortunately, this system was not designed to work in the best interest of the people or our country.  Alan brings to the discussion, detailed information regarding monetary system problems and a simple and doable Call To Action.  As a CPA, he has over 25 years of experience in providing accounting, tax & litigation support for Bankruptcy Trustees and civil litigators.  He also specializes in analyzing the financial condition and financial affairs of bankruptcy debtors and parties in litigation. This is the first of 15 short features on our monetary system.  

Alan Myers is a San Diego CPA and forensic accountant.  For 8 years, he has dedicated himself to researching, studying and analyzing the Federal Reserve System, banking and the national debt.  He is a writer, speaker and radio commentator on these and other related topics.  You can contact Alan at: Alan Myers, CPA [email protected]

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