Research finds that money has arisen to ease trade with foreigners across borders

A new study by archaeologist Dr. Mikael Fauvelle introduced trade theory, proposing this money first to facilitate long distance trade between foreigners and over the borders of pre-state companies. This theory suggests that the money was used to solve the problem of exchange networks that could not rely on trust -based relationships, According to Phys.org.

Traditional theories about the origins of money include the theory of goods, which proposes that the money be created to facilitate the internal trade between the members of a community and the gratalist theory, who argues that the money was created by a central authority to standardize the account units and to facilitate the taxation and collection of the tribute. However, both theories were criticized for their limitations in explaining the appearance of money in ancient societies.

“The theory of goods is based on the idea that trading one good for the other is inefficient, because it is possible that the commercial partner does not have the goods you want or may not want the goods you offer,” reports Phys.org. While this theory suggests that money mitigates inefficient and unreasonable problems in barter systems, providing a common exchange environment, studies have shown that pure barter systems are rare. Many experts now believe that barter economies are a “myth”, indicating the need for alternative explanations.

Cartalistic theory, on the other hand, links the appearance of money to the state, which used money for taxation and collection of tribute. However, it does not adequately explain how the money would have been operating in ancient companies devoid of a formal fiscal system or tribute. “Throughout the world, we see that many different traditional non-standard companies have used money for exchange. I think that comparison of these cases shows that the money does not necessarily occur through the control and taxation of the state,” said Dr. Fauvelle.

Dr. Fauvelle supports his hypothesis with two archaeological case studies: the use of peel beads in indigenous societies in North America and standardized bronze objects in Europe in the Bronze Age. These case studies show that there are monetary savings that teach the development of ancient states, claiming that money has emerged to facilitate long distance trade in which confidence -based relationships were impossible.

In western North America, many indigenous societies have used peel beads as a universal medium of thousands of years before European arrival, facilitating both daily transactions and long distance trade. These peel beads were often standardized in size and shape, allowing the use in extended commercial networks that were extended for thousands of kilometers. Spanish explorers documented the transport of peel beads on more than 600 kilometers from the Pacific coast to the interior regions of the continent.

North American commercial networks have expanded from the Pacific coast to the Mississippi River, sometimes requiring thousands of kilometers of travel. During the course, traders would meet foreigners with whom they needed to trade, requiring objects with common value, such as money with shell beads. “Even with well-established commercial networks, traders are unlikely to have been based only on delayed reciprocity to facilitate their travels.”

Similarly, in the Bronze Age Europe, the spoons of bronze and copper, the rings and axes were standardized by size and weight, serving as standardized valuables and facilitating trade between cultures and regions. Archaeological discoveries reveal that bronze and copper materials have been abundantly circulated, connecting the regions of Scandinavia to Mediterranean over 1,000 kilometers. Standardization has made these bronze articles convenient for trade between regions.

Scandinavian rock art depicts conical hats, cavity and bullion of oxy, which indicate trade and movement throughout Europe. Norwegic objects, such as foldable chairs and shaver depict Mediterranean motifs, which show cultural exchange. These discoveries suggest that standardized bronze objects could be used as a form of money that has value in cultures and regions, because simple barter systems could not rely on to purchase such resources.

The theory of commercial money of Dr. Fauvelle believes that money has appeared as a practical innovation motivated by the need for foreign trade in long -distance exchange networks. “The use of money would have greatly increased the efficiency of long distances exchange systems and would probably have increased the level of interregional interaction,” said Dr. Fauvelle.

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The appearance of money in these contexts has probably contributed to the development of social hierarchies and to the accumulation of wealth. “This, in turn, could have gathered more wealth in the hands of regional elites. This is indeed what we see in ancient California, with the formation of bosses on the islands and coasts of the region.” said Dr. Fauvelle.

Dr. Fauvelle concluded that regular and supported trade between foreigners and borders can explain how monetary systems have developed in many regions of the world in the absence of state control structures. He stressed that the emergence of money was a complex evolutionary process influenced by economic and social factors. “It is very possible that there are other examples of similar processes that are outlined in other world regions, and this would be an excellent topic for future research. Ancient Mesoamerica or Pacific Islands could be two areas to analyze in the future,” he said.

The article was written with the assistance of a news analysis system.