Island of stone money Essay Example | Topics and Well Written Essays - 500 words

Island of stone money - study ExampleWhen the Germans gained possession of the island, they ordered the chiefs of the districts in the island to holdfast the paths that had been neglected and were in poor condition. When the chiefs declined to administer the repair of the roads, the Germans sought a way of imposing fine on them. A person was sent to distributively disobedient district to mark the most valuable Fei with a black cross to indicate that the governance now owned the stones (Friedman 3). The passel then felt impoverished, repaired the roads, and the government then sent its agents to erase the marks. Consequently, the people regained possession of their Fei.Despite these peoples apparent lack of knowledge on how monetary systems work, the condition compares their beliefs with an incident in the U.S where the Bank of France requested the Federal Reserve Bank to store its gold in its account. Consequently, the Federal Bank put French gold in separate drawers and put a label to indicate that it belonged to the French. The two incidents illustrate how important myth is to monetary matters. People tend to regard that their own money is more real and rational than those used by other societies. Because of these myths, people dissect to realize that money from other countries may have high purchasing powers than theirs (Friedman 5).One of the characteristics of Fei that qualified it as money was its use by these people as a medium that could be exchanged for goods and services. The potency of these stones, another characteristic of money, ensured that they performed their duty as a medium of exchange and store of value. Durability as a feature of money is critical since it develops confidence that an item can be exchanged afterward for other goods.Fei can be classified as commodity money because its value was independent of regulative forces but dependent on attached value on its material. Act of the Germans to mark the stones illustrates this be cause of the adverse do that it