http://www.lendinguniverse.com/ construction financing home loan new money. They were durable-i.e., did not deteriorate with time or wear out quickly when handled. They had a relatively high value per unit of weight so that they could be carried easily and were divisible into fairly small units. Gold, silver, and copper possessed all these properties to a greater degree than most other commodities, which is probably why they were used as money in so many places for so long. The historical origin of a particular thing such as money may lie in its intrinsic usefulness. But once it is established in use as money, its acceptability comes to depend simply on everyone’s belief that everyone else will accept it. Long before the advent of paper money, there were many cases of societies with money which no one wanted for anything except to use in exchanges. The stones of the Yap islanders serve no ornamental or any other purpose. Some of them are too large to move, but everyone knows who owns them. Indeed, one of them retained its value and was still used after it had fallen off a cliff into the sea. There are all sorts of examples of useless monies. The acceptability of money does not rest on its usefulness, but rather on confidence in its continued acceptability. Money is as money does. Many people think that the dollar is valuable because of its now somewhat tenuous connection with gold. But ask yourself what would happen to the value of gold if the U.S. Treasury refused to give $35 for every ounce of gold offered to it. Does gold impart value to paper dollars-or do the dollars impart value to gold?
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